Circular No. 05/2025/TT-BTC dated January 24, 2025 on amendments to Circular No. 202/2012/TT-BTC on instruction for registration, management and publication of list of auditors practicing audit; Circular No. 203/2012/TT-BTC on the issuance, management, and use of certificates of eligibility for providing audit services; Circular No. 157/2014/TT-BTC on audit service quality control

CIRCULAR

AMENDMENTS TO SOME ARTICLES OF THE CIRCULAR NO. 202/2012/TT-BTC DATED NOVEMBER 19, 2014 OF THE MINISTER OF FINANCE ON INSTRUCTION FOR REGISTRATION, MANAGEMENT AND PUBLICATION OF LIST OF AUDITORS PRACTICING AUDIT; CIRCULAR NO. 203/2012/TT-BTC DATED NOVEMBER 19, 2014 OF THE MINISTER OF FINANCE ON THE ISSUANCE, MANAGEMENT, AND USE OF CERTIFICATES OF ELIGIBILITY FOR PROVIDING AUDIT SERVICES; CIRCULAR NO. 157/2014/TT-BTC DATED OCTOBER 23, 2014 OF THE MINISTER OF FINANCE ON AUDIT SERVICE QUALITY CONTROL

Pursuant to Law on Independent Audit No.67/2011/QH12 dated March 29, 2011;

Pursuant to Law No. 56/2024/QH15 dated November 29,2024 on amendments to some Articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, the Law on Penalties for Administrative Violations;

Pursuant to Government's Decree No. 17/2012/ND-CP dated March 13, 2012 elaborating and guiding the implementation of the Law on Independent audit;

Pursuant to Government’s Decree No. 14/2023/ND-CP dated April 20,2023 defining the functions, tasks, powers and organizational structure of the Ministry of Finance of Vietnam;

At the request of the Director of the Department of Accounting and Auditing Regulations;

The Minister of Finance issues a Circular on amendments to some articles of the Circular No. 202/2012 /TT-BTC dated November 19, 2014 of the Ministry of Finance on instruction for registration, management and publication of list of auditors practicing audit; Circular No. 203/2012/TT-BTC dated November 19, 2014 of the Ministry of Finance on the issuance, management, and use of certificates of eligibility for providing audit services; Circular No. 157/2014/TT-BTC dated October 23, 2014 of the Ministry of Finance on audit service quality control.

Article 1. Amendments to certain Articles of the Circular No. 202/2012/TT-BTC dated November 19, 2012 of the Ministry of Finance on instruction for registration, management and publication of list of auditors practicing audit

1. Point i, Clause 1, Article 8 is amended as follows:

“i) Practicing auditors shall be banned from audit practicing under effective court judgments or decisions; prosecuted; convicted of infringement upon economic management order or position-related crimes in the fields of finance, accounting or auditing but have not had their criminal records expunged; subject to community-based correctional education or forcibly sent to rehabilitation centers or reform schools.”

2. Clause 1, Article 11 is amended as follows:

1. Ministry of Finance shall update regularly and publicly on the website of the Ministry of Finance the following information:

a) List of practicing auditors in each audit firm;

b) List of practicing auditors banned from audit practice, including: practicing auditors suspended from audit practice; practicing auditors whose certificates of registration of audit practice are revoked; and practicing auditors with expired or invalidated certificates of registration of audit practice in accordance with regulations.”.

3. Clause 1, Article 12 is amended as follows:

“1. A practicing auditor shall be suspended from practicing audit in the following cases:

a) Having incurred two administrative penalties for violations against regulations on independent audit activity within 36 consecutive months;

b) Using expired or invalidated certificates of registration of audit practice in the audit activities (if the violating person is a practicing auditor at the time of violation detection);

c) Failing to comply with the provisions of the competent authority on the examination and inspection related to independent audit;

d) Using information relevant to audit documents, clients and/or audited entities to infringe the interests of the State, public interests, rights and lawful interests of regulatory authorities and/or other entities;

dd ) Signing the audit reports despite the fact that he/she is not a practicing auditor (if the violating person is a practicing auditor at the time of violation detection);

e) Failing to make audit documents on an audit or other assurance services;

g) Carrying out audits, signing audit reports or providing review results for public interest entities before obtaining an authorization from the Ministry of Finance of Vietnam;

h) Carrying out audits, signing audit reports or provide review results for public interest entities when his/her authorization is suspended or cancelled;

i) Working as an auditor in the cases where auditing practice is not allowed as stipulated in Article 19 of the Law on Independent Audit;

k) Failing to have enough hours to update annually knowledge as prescribed by the Ministry of Finance;

l) Committing the violation regarding cases where practicing auditors are not entitled to audit as stipulated in Article 19 of the Law on Independent Audit;

m) Allowing an external organization or individual to lease, borrow, use his/her audit certificate to register auditing practice; or register auditing practice at a unit for which he/she does not work in reality under a full-time employment contract;

n) There are serious professional violations or serious violations against auditing standards, professional ethic standards in accounting and auditing.”.

4. Clause 4 below is added after Clause 3:

4. Audit practice suspension period:

a) A practicing auditor shall be suspended for 6 months in one of the cases in points a, b, c, Clause 1 of this Article;

b) A practicing auditor shall be suspended for 12 months in one of the cases in points d, dd, e, g, h, I, k, l, and m, Clause 1 of this Article;

c) A practicing auditor shall be suspended in one of the cases in point n, Clause 1 of this Article;

5. Clause 1, Article 13 is amended as follows:

“1. A practicing auditor shall have his/her Certificates of registration of audit practice revoked in the following cases:

a) Falsifying or forging documents in order to obtain the Certificates of registration of audit practice;

b) Registering auditing practice at a unit for which he/she does not work in reality under a full-time employment contract;

c) Working for two or more audit firms and/or branches of foreign audit firms in Vietnam at the same time;

d) Contributing capital to two or more audit firms;

dd) Being suspended from the audit practice twice within 36 consecutive months;

e) Being banned from audit practice under effective court judgments or decisions; prosecuted; being convicted of infringement upon economic management order or position-related crimes in the fields of finance, accounting or auditing but have not had their criminal records expunged; being subject to community-based correctional education or forcibly sent to rehabilitation centers or reform schools;

g) Having the auditor certificate revoked.”.

Article 2. Amendments to certain Articles of the Circular No. 203/2012/TT-BTC dated November 19, 2012 of the Minister of Finance on the issuance, management, and use of Certificates of eligibility for providing audit services

1. Point b, Clause 1, Article 8 is amended as follows:

“b) The full name, number, and date of issuance of the Certificates of registration of audit practice of the legal representative and the Director (or General Director) of the audit firm (if he/she is not the legal representative)

2. Article 12 is amended as follows:

1. An audit firm shall be suspended from providing audit services in the following cases:

a) Committing the violations stipulated in points a and b of Clause 1, Article 27 and Clause 1b, Article 29 of the Law on Independent Audit;

b) Providing audit services without being issued with the Certificate of eligibility for providing audit services; resuming the audit business after a voluntary or involuntary suspension from audit service provision (if the audit firm has been issued with a Certificate and eligible to provide audit services at the time of violation detection);

c) Appointing a person who is not a practicing auditor to sign audit reports;

d) Appointing practicing auditors to carry out audits and/or sign audit reports for a public interest entity for more than 05 consecutive fiscal years from the second time onwards;

dd) Failing to provide information and documents at the request of competent authorities;

e) Failing to explain to and cooperate with competent authorities;

g) An audit firm in Vietnam that establishes a joint venture with a foreign audit firm to provide transboundary audit services in Vietnam but fails to retain documents on the audits carried out such joint venture;

h) Using information relevant to audit documents, clients and/or audited entities to infringe the interests of the State, public interests, rights and lawful interests of regulatory authorities and/or other entities;

i) Failing to make audit documents on an audit;

k) Providing audit or review services for public interest entities before obtaining an authorization from the Ministry of Finance of Vietnam or when its authorization is suspended or invalidated;

l) Providing transboundary audit services without the Certificate of eligibility for providing transboundary audit services; resuming the transboundary audit business after voluntary suspension or having the provision of transboundary audit services suspended (if the audit firm has been issued with a Certificate and eligible to provide audit services at the time of violation detection);

m) Committing the violations as stipulated in point c of Clause 1, Article 27 of the Law on Independent Audit;

2. Suspension period of the audit business:

a) An audit firm shall have its audit business suspended for 03 months in one of the cases in points a, b, c, d, dd, and e, Clause 1 of this Article;

b) An audit firm shall have its audit business suspended for 06 months in one of the cases in points g, h, i, k, and l, Clause 1 of this Article;

c) An audit firm shall have its audit business suspended in one of the cases in point m, Clause 1 of this Article;

3. The audit firms that have their audit business suspended shall stop providing audit services from the issuance date of the suspension decision.

In the case where an audit firm has its audit business suspended or is under voluntary suspension and is further suspended for the violations specified in this Clause, the additional suspension period shall be separated from the current suspension period of auditing business.

4. Ministry of Finance shall announce the audit business suspension decision on its website within 07 days from the issuance date of the suspension decision.”.

3. Clauses 4 and 5, Article 16 are amended as follows:

4. The branches of an audit firm that fail to satisfy the conditions in Article 31 of the Law on Independent audit for 03 consecutive months shall be suspended from providing audit services for 03 months.

5. Where an audit firm is suspended from providing audit services, its branches are also suspended from providing audit services.”.

4. Clauses 9 and 10 below are added Article 17 are amended as follows:

“i) Notify in writing to the Ministry of Finance within 10 days from the date the practicing auditors are banned from audit practicing under effective court judgments or decisions; prosecuted; convicted of infringement upon economic management order or position-related crimes in the fields of finance, accounting or auditing but have not had their criminal records expunged; subject to community-based correctional education or forcibly sent to rehabilitation centers or reform schools.”

10. Keep logbooks of issued audit contracts and audit reports, signature registration of practicing auditors at the audit firm; establish procedures for issuance of audit contracts and control of signatures of practicing auditors on audit reports for signature review and reference; promptly detect and report counterfeit seals and signatures, persons unqualified to register audit practice, and persons signing audit reports without actually participating in the audit to the competent authority.”.

Article 3. Amendments to certain Articles of the Circular No. 157/2014/TT-BTC dated October 23/2014 of the Minister of Finance on audit service quality control

1. Point c, Clause 1, Article 11 is amended as follows:

c) Audit documents with audit reports issued within a certain period from the establishment of the audit firm (for the fist-time inspection) or from the previous inspection to the time of inspection shall be selected for inspection; at the same time, these documents may be used to assess quality of audit services provided by audit firms and practicing auditors. Where necessary, the audit documents related to audit reports issued within a certain period from the establishment of the audit firm may also be inspect;”.

2. Article 26 is amended as follows:

“1. An audit firm shall have the audit business suspended for 03 months in the cases where the competent authority concludes:

a) Audit service quality is graded as Category 3 “Unsatisfactory service quality” after two consecutive inspections

b) Audit service quality is graded as Category 4 “Poor service quality with serious mistakes”

2. An audit firm shall have the audit business suspended for 06 months if audit service quality is graded as Category 4 “Poor service quality with serious mistakes” from the second time onwards

3. A practicing auditor shall be suspended the from audit practice for 6 months in the case where the competent authority concludes that the practicing auditor signed from 1 to 2 audit reports graded as Category 4 “Poor service quality with serious mistakes”

4. A practicing auditor shall be suspended the from audit practice for 12 months in the case where the competent authority concludes that the practicing auditor signed more than 02 audit reports graded as Category 4 “Poor service quality with serious mistakes”

5. Any audit firm or practicing auditor committing the same violations specified in clauses 1, 2, 3, 4 while carrying out audits for public interest entities shall have the suspension period doubled.".

Article 4. Effect

This Circular comes into force from the date of signing.

Article 5. Responsibility for implementation

Director of the Department of Accounting and Auditing Regulations, heads of relevant units under the Ministry of Finance, and relevant organizations and individuals shall be responsible for implementation of this Circular.