Chương 5 Luật Kiểm toán độc lập 2011: Hoạt động kiểm toán độc lập

Chapter 5.

ACTIVITIES OF INDEPENDENT AUDIT

ITEM 1. ACTIVITIES OF AUDITING FIRMS

Article 40. Scope of activities of auditing firms, branches of foreign auditing firms in Vietnam

1. Auditing firms, branches of foreign auditing firms in Vietnam perform ​​the following services:

a) The audit services, including audit of financial statements and audit of activities, audit of compliance, audit of reports on the settlement of completed projects, audit of financial statements for tax purposes and the other audits;
b) Service of reviewing financial statements, financial information and other assurance services.

2. Apart from the services specified in clause 1 of this Article, the auditing firms are entitled to register for the performance of the following services:

a) Consultancy of economy, finance, taxes;

b) Consultancy of management, conversion, and restructuring of enterprises;

c) Consultancy of information technology application in the management of enterprises and organizations;

d) Accounting services in accordance with provisions of accounting legislation;

đ) Valuation of assets and business risk assessment;

e) Services of fostering knowledge of finance, accounting, and auditing;

g) Other related services in finance, accounting, tax as prescribed by law.

3. Enterprises that have been granted certificates of sufficient conditions to carry on business of audit services in accordance with this Law shall be performed ​​accounting services in accordance with provisions of accounting legislation without registration.

4. When performing the services specified in clause 1 and clause 2 of this Article, the auditing firm must meet all conditions as prescribed by this Law and other provisions of concerned law.

Article 41. Receipt of audit services

1. Auditing firms, branches of foreign auditing firms in Vietnam are entitled to receive the audit services only in accordance with their capabilities within the client's requirements.

2. Upon receipt of audit services, auditing firms, branches of foreign auditing firms in Vietnam must inform clients of the rights, obligations, and their professional responsibilities in the performance of audit services, limitation of financial liability of auditing firms, branches of foreign auditing firms in Vietnam and practicing auditors when occurring audit risk.

3. Auditing firms, branches of foreign auditing firms in Vietnam are not entitled to transfer the audit services that they have concluded contract to the other auditing firms, branches of foreign auditing firms in Vietnam, except for the case the client agrees.

4. Auditing firms, branches of foreign auditing firms in Vietnam must appoint a person who is in charge of each audit. Person who is in charge of the audit must be the practicing auditor. The audit statement must be signed by the person who is in charge of the audit

Article 42. Audit contracts

1. Auditing firms, branches of foreign auditing firms in Vietnam implement the audit services under the audit contract.

2. Audit contract is an agreement between auditing firms and branches of foreign auditing firms in Vietnam with clients on the performance of audit services. The contract audit shall be made in writing and contains the following main contents:

a) Names and addresses of clients or clients’ representatives, representatives of the auditing firms, branches of foreign auditing firms in Vietnam;

b) The purpose, scope and contents of audit services, term of the audit contract;

c) The rights, obligations and responsibilities of the parties;

d) The form of audit statement and other forms expressing the audit results such as the management letter and other reports;

đ) Audit service fees and other expenses agreed by the parties

Article 43. Obligations of confidentiality

1. Practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam are not entitled to disclose information of audit records, clients, the audited units, unless the clients, audited units approve or as prescribed by law.

2. Practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam are not entitled to use information of audit records, clients, audited units to infringe the interests of the State, public interests, rights and lawful interests of agencies, organizations and individuals.

3. Auditing firms, branches of foreign auditing firms in Vietnam must set up and operate the internal control systems to ensure the implementation of confidentiality obligations.

4. The State agencies, professional organizations on audit and concerned individuals are obliged to keep confidential information provided on the audit records, clients, audited units in accordance with the law regulations.

Article 44. Audit service fees

1. Fees for audit services agreed by auditing firms, branches of foreign auditing firms in Vietnam and the client in the audit contracts upon the following bases:

a) The contents, volume and nature of work;

b) Time and working conditions of practicing auditors, auditors used to perform the services;

c) Qualifications, experience and reputation of practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam;

d) The level of responsibility and time limit that the performance of services requires

2. Audit service fees are calculated by the following methods:

a) Working hours of practicing auditors, auditors;

b) Each audit service with a fee package;

c) The audit contract of many terms with a fixed fee for each term

Article 45. Process of audit

1. Audit process includes the following steps:

a) To accept, keep clients and make audit planning;

b) To perform audits;

c) To terminate the audit, make the audit statement and handle the after-audit.

2. Practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam perform the steps of the audit process upon the audit standards.

ITEM 2. AUDIT STATEMENT

Article 46. Audit statement on financial statement

The audit statement on financial statements is made in accordance with provisions of the auditing standards and contains the following contents:

a) The objects of the audit;

b) Responsibilities of the audited unit and the auditing firms, branches of foreign auditing firms in Vietnam;

c) The scope and basis for the audit;

d) Location and time for making the audit statement;

đ) Audit opinion on financial statements which have been audited;

e) Other contents in accordance with provisions of auditing standards.

2. The date of signing the audit statement is not before the date of signing the financial statement.

3. The audit statement must be signed by the practicing auditor who is assigned to perform the audit by auditing firm, branch of foreign auditing firm in Vietnam and the legal representative of the auditing firm or person who is authorized in writing by the legal representative. Person who is authorized in writing by the legal representative must be a practicing auditor.

4. The audit statement on consolidated financial statements of the groups, corporations in the model of parent - subsidiary company is done in accordance with provisions of auditing standards.

Article 47. Audit statements on other audit works

The audit statement on the other audit works shall be made on the basis of provisions in Article 46 of this Law and auditing standards consistent with each audit.

Article 48. Audit Opinion

1. Based on the result of the audit, the practicing auditor and auditing firm, branch of foreign auditing firm in Vietnam must express their opinion on the financial statement and other contents which have been audited under the regulations of auditing standards.

2. The Ministry of Finance shall prescribe the contents which are not entitled to except in the audit statement in accordance with auditing standards.

3. The competent State administration agencies, representative for the owner of the audited unit may request the auditing firms, branches of foreign auditing firms in Vietnam and the audited unit to explain on the contents excepted in the audit statement.

ITEM 3. AUDIT DOSSIER

Article 49. Audit dossier

1. Practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam must collect and record sufficient necessary documents and information in the audit profile relating to each audit to make the basis for forming their audit opinion and demonstrate that the audit was conducted in accordance with the law regulations and auditing standards.

2. Practicing auditors, auditing firms, branches of foreign auditing firms in Vietnam must be documented audit profile in accordance with provisions of auditing standards.

Article 50. Preservation and archiving of audit records

1. Audit records must be kept fully and safely during the course of use.

2. Audit records must be archived for a period of twelve months from the date of issuance of audit statement of the audit. The time limit for archiving audit records is at least ten years.

3. The legal representatives of the auditing firms, branches of foreign auditing firms in Vietnam must be responsible for preservation, archiving of audit records safely, adequately, legally and securely.

4. Audit records to be archived must be completed, systematic, classified, and arranged into each private record according to the chronological order of appearance and each audit contract, each audit.

5. The Government provides for in detail on the archiving, use and destruction of the audit records.

Article 51. Dossiers, documents on related services

The preservation, archiving, use, and destruction of records, documents, and related services specified in point b clause 1 Article 40 of this Law shall comply with the provisions of Article 49 and Article 50 of this Law.

Item 4. QUALITY CONTROL OF AUDIT SERVICES

Article 52. Quality control of audit services

1. Auditing firms, branches of foreign auditing firms in Vietnam must develop and implement control systems of service quality specified in clause 1 Article 40 of this Law, the policies and procedures for quality control for each audit.

2. Auditing firms, branches of foreign auditing firms in Vietnam are subject to the control of the competent bodies on the quality of services specified in clause 1 Article 40 of this Law.

3. The Ministry of Finance is entitled to mobilize auditors and practicing auditors and other experts in the implementation of quality control of audit services. The mobilization and allocation of participants in the quality control must ensure the principle of independence and objectivity.

 4. If necessary, the Minister of Finance sets up a professional council to advise the handling of the proposals on audit statements and audit quality.

5. The Ministry of Finance shall prescribe the regulations to control quality of services specified in clause 1 Article 40 of this Law.