Chương 1 Luật Kiểm toán độc lập 2011: Những quy định chung

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of governing

This Law regulates the principles, conditions, scope, and form of independent audit activities; the rights and obligations of practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam and the units that are audited.

Article 2. Subjects of application

This law applies to the auditors, the practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam, the units that are audited, professional organizations on audit and other organizations, individuals related to the activities of independent audit.

Article 3. Application of the Law on independent audit, international Agreements and relevant laws

1. Domestic organizations and individuals and foreign organizations, or individuals engaging in independent audit on the territory of Vietnam must comply with this Law and other provisions of concerned law.

2. Where the international Agreements which the socialist Republic of Vietnam is a party stipulating different from the provisions of this Law shall apply the provisions of such international Agreements.

Article 4. Objective of independent audit

Independent audit activities aim to contribute to the transparency of economic information, finance of units that are audited and other enterprises, organizations; to strengthen investment environment; practice thrift and prevent and combat waste, prevent and combat corruption; to detect and prevent violations of law; to raise the effectiveness, management efficiency, administration of economy, finance of the State and business operation of enterprises.

Article 5. Interpretation of terms

In this Law, the following terms are construed as follows:

1. Independent audit means the auditor practicing a profession, auditing firms, branches of foreign auditing firms in Vietnam inspecting and giving their independent opinions on the financial statements and other audit works under the audit contract.

2. Auditors mean the persons who are granted certificates of auditors in accordance with law regulations or those who have certificates granted from foreign countries recognized by the Ministry of Finance and passed examination on the Vietnam law.

3. Practicing auditors mean the auditors who have been issued certificates of registration of practicing audit.

4. Members participating in the audit include practicing auditors, auditors and other members.

5. Auditing enterprises mean the enterprises which meet the sufficient conditions for trading audit services in accordance with this Law and other provisions of the concerned law.

6. Audited units mean the enterprises, organizations that are implemented the audit under the audit contract by the auditing firms, branches of foreign auditing firms in Vietnam.

7. Units with the public interest mean the enterprises, organizations that the nature and scale of operation which is highly related to the interests of the public.

8. Audit practice means the operation trading the audit service of practicing auditors, auditing firms and branches of foreign auditing firms in Vietnam.

9. Financial statement audit means the one that practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam inspect, give their opinions on the truthfulness and rationality in the key respects of the financial statements of the audited units in accordance with provisions of auditing standards.

10. Compliance audit means the one that practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam inspect, give their opinions on the compliance with laws, regulations, provisions that the audited units shall perform.

11. Operation audit means the one practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam inspect, give their opinions on the economy, effectiveness and operation efficiency of a part or the whole audited unit.

12. The audit statement means the written report made by practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam after the completion of the audit, giving opinions on financial statements and other contents which have been audited under the audit contract.

13. Branches of foreign auditing firms in Vietnam mean the dependent units of the foreign auditing firms, having no legal entity status, ensured to take the responsibility for all obligations and commitments of its branches in Vietnam by the foreign auditing firms.

Article 6. Audit standards and professional ethical standards of accounting and auditing

1. Auditing standards mean the rules and guidelines on the requirements, principles, auditing procedures, and handling of the relationship arising from audit activities that members participating in the audit and the auditing firms, branches of foreign auditing firms in Vietnam must comply with.

2. Professional ethical standards of accounting and auditing mean the rules and guidelines on principles, contents of the application of professional ethical standards for members participating in the audit and auditing firms, branches of foreign auditing firms in Vietnam.

3. Auditing standards and professional ethical standards of accounting and auditing are the bases to inspect and evaluate the quality of audit and professional ethical of members participating in the audit and auditing firms, branches of foreign auditing firms in Vietnam.

4. Ministry of Finance stipulates auditing standards and professional ethical standards of accounting and auditing on the basis of international standards.

Article 7. Value of audit statement

1. The audit statements on financial statements assess the honesty and rationality of the financial statements in conformity with accounting standards, the accounting regime issued by competent agencies or organizations.

2. Compliance audit statements assessing the compliance with laws, rules, and regulations in the management and use of money, property and other resources of the audited units.

3. Operation audit statements assessing the economy, effectiveness, and efficiency in management and use of money, property and other resources in the audited units.

4. Audit statements are used for:

a) Shareholders, investors and parties participating in the joint venture, association, customers and other organizations and individuals having direct interests or related to the audited units to handle relations on rights and obligations of stakeholders;

b) State agencies manage and administer under functions and assigned tasks;

c) Audited units detect, handle, and prevent timely errors and weakness in the operation of the units.

Article 8. Operation principles of independent audit

1. Compliance with the law and taking responsibility before the law on occupational activity and audit statements.

2. Compliance with audit standards and professional ethical standards of accounting and auditing of Vietnam; for the audits under the audit contracts that are required to apply the other audit standards shall comply with such audit standards.

3. Independence, honesty, objectivity.

4. Information confidentiality.

Article 9. Compulsory audit

1. Compulsory audit is the audit for the annual financial statements, the settlement statements of completed projects and other financial information of the audited units specified in clause 1 and clause 2 Article 37 of this Law and other provisions of concerned law.

2. Audit contract of annual financial statements of the enterprises, organizations that are required to audit the financial statements must be concluded no later than thirty days before the date of ending the year accounting period.

3. Enterprises and organizations that are required to audit as submitting financial statements to the competent State agencies and as publicizing financial statements audit are required to attach the audit statements; in case when the State agencies receive financial statements of the enterprises, organizations which are required to audit without the attached audit statements, the State agencies are responsible for sending notice to the competent state agencies for handling in accordance with the law regulations.

Article 10. Encouragement of audit

The State encourages enterprises and organizations hiring the auditing firms, branches of foreign auditing firms in Vietnam to audit the financial statements, the settlement statements of completed projects and other audit works before they are submitted to the competent state agencies or before the public finance.

Article 11. State administration on the independent audit activities

1. The Government unifies state administration on the independent audit activities.

2. The Ministry of Finance takes responsibility before the Government for the implementation of state administration on independent audit activities, with the duties and powers as follows:

a) Making, submitting to the competent State agency for promulgation according to its competence the legal documents on independent audit;

b) Making, submitting to the Government for deciding the strategy and policy of developing activities of independent audit;

c) Stipulating the conditions to take part in the examination, the organization of examination to grant certificates of auditors; granting, revoking, and managing certificates of auditors;

d) Stipulating the standard form of the certificate of sufficient conditions for trading audit service, granting, modifying and revoking the certificates of sufficient conditions for trading audit service;

đ) Suspending the trading of audit service;

c) Inspecting, examining and settling complaints and denunciations and handling violations of legislation on independent audit;

g) Inspecting, examining activities in the field of independent audit of the professional organizations on audit;

h) Providing for updating knowledge to auditors, practicing auditors;

i) Providing for registration and management of audit practice; publicizing the list of auditing firms, branches of foreign auditing firms in Vietnam and practicing auditors;

k) Providing for monitoring quality of audit service;

l) Reviewing and evaluating the activities of independent audit and implementing the measures to support the development of independent audit activities;

m) International cooperation on independent audit.

3. Ministries, .

4. People's Committees of provinces and cities directly under the central Government within its duties and powers are responsible for the state administration on independent audit activities at its locality.

Article 12. Professional organizations on audit

1. Professional organizations on audit are established and operate under the provisions of the law on associations and are responsible for complying with the provisions of the law on independent audit.

2. Professional organizations on audit are fostered knowledge for auditors, the auditors practice and perform a number of tasks related to independent audit activity prescribed by the Government.

Article 13. The strictly-banned acts

1. Strictly banning members who participate in the audits and auditing firms, branches of foreign auditing firms in Vietnam conduct the following acts:

a) To purchase, receive donation, hold shares or contributed capital of the audited units regardless of the number;

b) To buy, sell bonds or other assets of the audited units affecting the independence in accordance with the professional ethical standards of accounting and auditing;

c) To receive or require any money or benefits from the audited units other than the service fees and costs agreed in the contract concluded;

d) To harass, cheat customers and the units audited;

đ) To disclose information on the audit records, clients, audited unit, unless the clients, audited units approve or as prescribed by law;

e) To inform, introduce false qualifications, experience and ability to provide services of practicing auditors and auditing firms, branches of foreign auditing firms in Vietnam;

g) To scramble clients in the forms of hindering, drawing, bribing and colluding with clients and other acts of unfair competition;

h) To carry out the collection for the audited units;

i) To be in collusion with the audited units to falsify accounting records, financial statements, audit records and to report falsely the results of audit;

k) To forge, falsify records of audit;

l) To rent, borrow certificate of auditor and the certificate of registering to practice audit for its professional activities;

m) To provide audit services without adequate conditions in accordance with provisions of this Law;

n) Other acts under regulations of law;

2. Apart from the provisions in clause 1 of this Article, strictly banning auditors and practicing auditors perform the following acts:

a) Practicing audit as an individual;

b) Forging, leasing, lending, or permitting to use name and certificate of auditors, certificate of registering audit practice to perform audit activities;

c) Working for two auditing firms, branches of foreign auditing firms in Vietnam or more at the same time;

d) Other acts under regulations of law.

3. Strictly banning the audited units and concerned organizations and individuals to carry out the following acts:

a) To select organizations and individuals that are not sufficient conditions for practicing audit to conclude the audit contracts;

b) To refuse to provide necessary information and documents for the audit as required by practicing auditors or auditing firms, branches of foreign auditing firms in Vietnam;

c) To obstruct the work of the participants in the audit;

d) To provide false, untruthful, incomplete, untimely information, documents relating to the audit;

đ) To bribe, collude with members participating in the audits and auditing firms, branches of foreign auditing firms in Vietnam to falsify accounting records, financial statements, audit records and audit statements;

e) To conceal violations of law on finance and accounting;

g) To intimidate, retaliate, force participants in the audit to falsify the results of the audit;

h) Other acts under regulations of law.

4. Strictly banning organizations and individuals to intervene and prevent unlawful practice operation of practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam; taking advantage of their positions and powers to violate the provisions on granting certificates of sufficient conditions to carry on business of audit services, certificates of registration of auditing practice, inspection, quality control of audit services, discipline and handling of administrative violations in the independent audit activities.