Decree No. 105/2013/ND-CP on administrative sanctions for violations in the field of accounting and independent auditing.

 

DECREE

Regulations on Administrative Sanctions for Violations in the Field of Accounting and Independent Auditing

________________________

 

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Handling Administrative Offenses dated June 20, 2012;

Based on the Accounting Law dated June 17, 2003;

Based on the Law on Independent Auditing dated March 29, 2011;

At the proposal of the Minister of Finance;

The Government issues this Decree to regulate administrative sanctions for violations in the field of accounting and independent auditing,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates acts of administrative violation, statute of limitations for sanctions, forms of sanctions, levels of fines, measures to mitigate consequences, authority to issue inspection reports, and authority to impose administrative sanctions in the fields of accounting and independent auditing.

Article 2. Applicability

1. Individuals and organizations within Vietnam and abroad (hereinafter referred to collectively as individuals and organizations) who violate laws and regulations on accounting and independent auditing within the territory of Vietnam but not to the extent of criminal prosecution shall be subject to administrative sanctions as prescribed in this Decree.

2. Persons with authority to issue inspection reports, impose administrative sanctions, and other related individuals and organizations.

Article 3. Statute of Limitations for Administrative Violations

1. The statute of limitations for administrative sanctions in the field of accounting is two years;

2. The statute of limitations for administrative sanctions in the field of independent auditing is one year;

3. The time point for calculating the statute of limitations for administrative sanctions as prescribed in Clause 1 and Clause 2 of this Article is defined as follows:

a) For completed acts of administrative violation, the statute of limitations is calculated from the date the act was concluded.

b) For ongoing acts of administrative violation, the statute of limitations is calculated from the date the violation was discovered.

4. In cases where administrative sanctions are imposed on individuals transferred by judicial authorities, the statute of limitations shall be applied according to Clause 1, Clause 2, and Clause 3 of this Article. The time taken by judicial authorities to handle and review the case is included in the statute of limitations for administrative sanctions.

5. Within the period prescribed in Clause 1, Clause 2, and Clause 3 of this Article, if individuals and organizations deliberately evade or obstruct the imposition of sanctions, the statute of limitations for administrative sanctions will be recalculated from the date such evasion or obstruction ends.

Article 4. Forms of Administrative Sanctions

1. For each act of administrative violation in the fields of accounting and independent auditing, the violator must bear one of the following main forms of sanction:

a) Warning;

b) Fine:

The maximum fine in the field of accounting for individuals is VND 30,000,000, and for organizations, it is VND 60,000,000. The fine levels specified from Article 7 to Article 16 of Chapter II of this Decree apply to individuals. For organizations committing the same act of administrative violation, the fine level is twice that imposed on individuals.

The maximum fine in the field of independent auditing for individuals is VND 50,000,000, and for organizations, it is VND 100,000,000.

c) Suspension of license or certificate usage, temporary suspension of activities in the field of independent auditing:

- Suspension of audit service business operations for auditing organizations up to 12 months from the effective date of the penalty decision;

- Suspension of auditing practice for practicing auditors up to 12 months from the effective date of the penalty decision;

- Suspension of auditor knowledge update programs up to six months from the effective date of the penalty decision;

- Suspension of cross-border audit service provision in Vietnam by foreign auditing firms up to 24 months from the effective date of the penalty decision;

- Revocation of the Registration Certificate for Audit Practice up to 24 months from the effective date of the penalty decision;

- Revocation of the Certificate of Eligibility for Audit Service Business Operations up to 24 months from the effective date of the penalty decision.

2. In addition to the main forms of sanctions prescribed in Clause 1 of this Article, depending on the nature and severity of the violation, individuals and organizations violating in the field of accounting may also be subject to supplementary sanctions as follows:

a) Revocation of Accounting Practice Certificate for accountants from one to three months; suspension of accounting service business operations for accounting service organizations from one to three months;

b) Confiscation of accounting vouchers, accounting books, financial statements.

Article 5. Measures to remedy consequences

Individuals and organizations violating administrative regulations in the fields of accounting and independent auditing, in addition to being subject to forms of punishment, may also be subject to measures to remedy consequences as follows:

1. Measures to remedy consequences in the field of accounting include:

a) Compelling the cancellation of duplicate accounting vouchers that have been prepared;

b) Compelling the restoration of accounting ledgers;

c) Compelling the return of unlawful profits obtained through the commission of administrative violations.

2. Measures to remedy consequences in the field of independent auditing include:

a) Compelling the correction of false or misleading information;

b) Compelling the return of unlawful profits obtained through the commission of administrative violations;

c) Compelling the destruction of files, documents, certificates, licenses, and certifications that involve fraud, forgery, or misrepresentation.

Article 6. Application of provisions of laws on administrative penalties in related fields

Administrative violations related to accounting and independent auditing that are stipulated in other legal documents shall be handled according to those documents.

Chapter II

VIOLATIONS, FORMS OF PENALTIES AND AMOUNTS OF PENALTIES IN THE FIELD OF ACCOUNTING

Article 7. Penalties for violations concerning accounting vouchers

1. Warning penalty for the act of signing accounting vouchers not in accordance with the prescribed signature positions for each type of accounting voucher.

2. Fine from VND 500,000 to VND 1,000,000 for one of the following acts:

a) Preparing accounting vouchers lacking essential contents as prescribed by law on accounting;

b) Erasing, altering accounting vouchers.

3. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on one of the following acts:

a) Preparing accounting vouchers lacking the required number of copies as prescribed for each type of accounting voucher;

b) Signing accounting vouchers without recording all necessary contents within the responsibility of the signer;

c) Signing accounting vouchers without authority or without authorization to sign.

4. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following acts:

a) Forgery or misrepresentation of accounting vouchers;

b) Agreeing or coercing others to forge or misrepresent accounting vouchers;

c) Preparing accounting vouchers where the contents of the different copies do not match when multiple copies must be prepared for a single economic or financial transaction;

d) Not preparing accounting vouchers when an economic or financial transaction occurs;

đ) Preparing multiple accounting vouchers for a single economic or financial transaction;

e) Destroying or intentionally damaging accounting vouchers.

5. Additional forms of punishment:

a) Confiscation of accounting vouchers for violations as specified in Points a and b Clause 4 of this Article;

b) Suspension of the right to use the Accounting Practice Certificate for accountants from one month to three months; suspension of accounting service operations for organizations providing accounting services from one month to three months for violations as specified in Clause 4 of this Article.

6. Measures to remedy consequences:

Compel the cancellation of duplicate accounting vouchers prepared for a single transaction as specified in Point đ Clause 4 of this Article.

Article 8. Penalties for violations concerning accounting ledgers

1. Warning or fine from VND 500,000 to VND 1,000,000 for one of the following acts:

a) Preparing accounting ledgers lacking required contents such as: failing to record the name of the accounting unit, ledger name, date of preparation, date of closing; lacking signatures of the preparer, chief accountant, and legal representative of the accounting unit; failing to number pages, failing to affix stamps between pages in the accounting ledger;

b) Recording accounting ledgers lacking essential contents as prescribed;

c) Violating regulations on recording ledgers such as overlapping entries, skipping lines; failing to cross out unused portions of ledger pages; failing to perform total summing up at the end of a page, failing to carry forward totals from one page to the next;

d) Not binding ledgers separately for each accounting period and not completing legal procedures after printing ledgers on paper when using computerized accounting.

2. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on any of the following acts:

a) Opening ledgers not in accordance with general principles of one of the prescribed types of ledgers;

b) Recording ledgers not in compliance with prescribed methods of accounting standards and accounting systems;

c) Closing ledgers not in a timely manner as prescribed;

d) Correcting errors in ledgers not in accordance with prescribed methods.

3. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on one of the following acts:

a) Not opening ledgers at the beginning of the accounting year or upon establishment of the accounting unit;

b) Not having accounting vouchers to substantiate the information and figures recorded in ledgers or figures in ledgers not matching accounting vouchers;

c) Information and figures recorded in ledgers of the current year not continuing from the previous year's ledgers or ledgers not being continuous from opening to closing;

d) Not closing ledgers in cases where accounting law requires ledgers to be closed;

đ) Not printing ledgers on paper after closing them on computers for types of ledgers required to be printed, or not having full signatures and stamps as prescribed after printing ledgers.

4. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following acts:

a) Opening ledgers outside the official ledger system of the unit;

b) Forgery of ledgers;

c) Agreeing or coercing others to forge ledgers;

d) Intentionally leaving assets of the unit or assets related to the unit out of ledgers;

đ) Prematurely destroying or intentionally damaging ledgers.

5. Additional forms of punishment:

a) Confiscation of ledgers for violations as specified in Points a, b, and c Clause 4 of this Article;

b) Suspension of the right to use the Accounting Practice Certificate for accountants from one month to three months; suspension of accounting service operations for organizations providing accounting services from one month to three months for violations as specified in Clause 4 of this Article.

6. Measures to remedy consequences:

Compel the restoration of ledgers for violations as specified in Point đ Clause 4 of this Article.

Article 9. Sanctions for violations concerning accounting accounts

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Recording not in accordance with the content prescribed for accounting accounts;

b) Modifying the content or method of recording of accounting accounts issued by the Ministry of Finance or opening additional accounting accounts in the first-level accounting account system that has been selected without the approval of the Ministry of Finance.

2. A fine of between 10,000,000 VND and 20,000,000 VND shall be imposed for one of the following acts:

a) Not applying the prescribed accounting account system for the industry and field of operation of the entity;

b) Not implementing the accounting account system approved by the Ministry of Health.

Article 10. Sanctions for violations concerning financial reporting, final accounts reporting, and publicizing financial reports

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Not preparing financial reports or preparing incomplete financial reports according to regulations;

b) Preparing and presenting financial reports not in accordance with the prescribed methods; unclearly; inconsistent with regulations;

c) Submitting financial reports and final accounts reports to competent state agencies late by from one month to three months beyond the prescribed deadline;

d) Publicizing financial reports incompletely according to regulations, including: Settlement of state budget revenues and expenditures for the year and other financial revenues and expenditures; asset status, liabilities, equity, business results, establishment and utilization of funds, income of employees;

đ) Publicizing financial reports late by from one month to three months beyond the prescribed deadline;

2. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following acts:

a) Submitting financial reports and final accounts reports to competent state agencies late by more than three months beyond the prescribed deadline;

b) Preparing financial reports not consistent with the figures in the accounting books and accounting vouchers;

c) Falsifying financial reports, misrepresenting figures on financial reports;

d) Agreeing or compelling others to falsify financial reports, misrepresent figures on financial reports;

đ) Intentionally agreeing or compelling others to provide, confirm false accounting information and figures;

e) Publicizing financial reports late by more than three months beyond the prescribed deadline;

g) Publicizing false financial report information and figures;

h) Submitting financial reports to competent state agencies without attaching audit reports where laws require auditing;

3. Additional forms of punishment:

a) Revoking the Accounting Practice Certificate of an accountant from one month to three months; suspending the operation of accounting service businesses from one month to three months for violations stipulated in Points b, c, d, đ, g Clause 2 of this Article;

b) Confiscating financial reports for violations stipulated in Points b, c, d, đ Clause 2 of this Article.

Article 11. Sanctions for violations concerning accounting inspections

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Not complying with the accounting inspection decision of the competent authority;

b) Not providing or providing insufficiently the relevant accounting documents to the inspection team.

2. A fine of from VND 10,000,000 to VND 15,000,000 for any of the following actions:

a) Not implementing or implementing insufficiently the conclusions of the inspection team;

b) Not conducting accounting inspections for subordinate accounting units for three consecutive years.

Article 12. Sanctions for violations concerning the preservation and storage of accounting documents

1. Warning or fine from VND 500,000 to VND 1,000,000 for one of the following acts:

a) Storing accounting documents later than twelve months beyond the prescribed deadline;

b) Storing accounting documents insufficiently according to regulations;

c) Preserving accounting documents unsafely, causing damage or loss of documents during the storage period.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for any of the following acts:

a) Using accounting documents during the storage period not in accordance with regulations;

b) Not organizing inventory, classification, and recovery of lost or destroyed accounting documents.

||| 3. A fine of from 10,000,000 VND to 20,000,000 VND shall be imposed for any of the following acts:

a) Destroying accounting documents before the end of the prescribed storage period;

b) Destroying accounting documents without establishing a Destruction Committee, not following the prescribed destruction methods, and not creating a destruction record.

Article 13. Sanctions for violations concerning asset inventory

1. Warning or fine from VND 500,000 to VND 1,000,000 for one of the following acts:

a) Not preparing a consolidated report on the results of the asset inventory as prescribed;

b) Not identifying the reasons for discrepancies; not reflecting the amount of discrepancies and the handling results between actual inventory figures and accounting records into the accounting books.

2. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed for failing to conduct an asset inventory at the end of the accounting year or in other cases as prescribed.

3. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for falsifying or misreporting the results of the asset inventory.

Article 14. Sanctions for violations concerning the organization of accounting machinery, staffing of accountants, or hiring of accountants

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Not organizing an accounting machinery; not staffing accountants or not hiring organizations or individuals engaged in accounting services as accountants as prescribed;

b) Staffing individuals who are prohibited from being accountants under the law;

c) Staffing individuals who do not meet the prescribed standards and conditions;

d) Hiring organizations or individuals who do not meet the prescribed standards and conditions for practicing accounting or who have not registered their business as required, to provide accounting services to the entity.

2. A fine of between 10,000,000 VND and 20,000,000 VND shall be imposed for one of the following acts:

a) Appointing individuals responsible for managing and operating the accounting unit to concurrently serve as accountants, warehouse keepers, cashiers, or buyers/sellers of assets except for private enterprises and individual business households;

b) Appointing chief accountants who do not meet the prescribed standards and conditions;

c) Hiring chief accountants who do not meet the prescribed standards and conditions.

Article 15. Sanctions for violations concerning the practice of accounting

1. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following acts:

a) Practicing accounting without registering for accounting service business;

b) The legal representative of an accounting service business enterprise does not have an Accounting Practice Certificate;

c) Practicing accounting without ensuring the conditions for operation as prescribed but still providing accounting services;

d) An individual practicing accounting without an Accounting Practice Certificate;

đ) Accepting employment as an accountant when being the parent, spouse, child, sibling, or half-sibling of the person responsible for managing and operating the accounting unit, including the Chief Accountant, or having economic or financial relations, or lacking professional competence, or accepting employment as an accountant when the accounting unit requests something contrary to professional ethics and accounting expertise;

e) Renting out or lending an Accounting Practice Certificate.

2. Additional forms of punishment:

Revoking the right to use an Accounting Practice Certificate for a period of one to three months for those practicing accounting; suspending the provision of accounting services for a period of one to three months for organizations engaging in accounting service businesses that violate the provisions of Point e Clause 1 of this Article.

3. Measures to remedy consequences:

Compelling the return of illegal profits obtained from implementing the violations stipulated in Points a, c, d, đ, e Clause 1 of this Article.

Article 16. Sanctions for violations concerning the application of accounting standards, accounting regulations, and other provisions

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Not registering or not notifying the accounting system applied at the entity within the prescribed time limit where such registration or notification with the competent state agency is required;

b) Applying incorrectly the provisions regarding writing; numerals; monetary units or accounting periods.

2. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for allowing another party to use the entity's bank deposit account or State Treasury deposit account to receive money or transfer funds for financial activities that violate financial management, budgetary, capital utilization regulations, and laws on prevention and combating money laundering.

Article 17. Sanctions for violations in organizing accounting manager training and issuing training certificates

1. Warning or a fine from VND 500,000 to VND 1,000,000 shall be imposed on educational institutions that violate any of the following acts:

a) Not submitting complete files and documents to the Ministry of Finance before starting a course;

b) Organizing an accounting manager training class with more than 100 trainees;

c) Conducting an accounting manager training course lasting longer than six months;

d) Not reporting or informing the Ministry of Finance about the content related to the course as prescribed.

2. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on educational institutions that violate any of the following acts:

a) Not ensuring the content, program, and duration of study for trainees as prescribed;

b) Errors in using training materials for accounting managers;

c) Retaining incomplete or incorrect records related to the course as prescribed.

3. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on educational institutions that violate any of the following acts:

a) Starting a course for accounting manager training without meeting the required conditions;

b) Starting a course for accounting manager training for foreign individuals without approval from the Ministry of Finance;

c) Issuing a training certificate for accounting managers to trainees who do not meet the criteria and conditions;

d) Issuing a training certificate for accounting managers to trainees who do not match the examination results;

đ) Managing and issuing training certificates for accounting managers from the educational institution not in accordance with the regulations of the Ministry of Finance.

4. Compel the return of all illegal profits obtained through the implementation of the violations stipulated in Points a, b, c, and d of Clause 3 of this Article.

Chapter III

VIOLATIONS IN THE FIELD OF INDEPENDENT AUDITING AND ADMINISTRATIVE SANCTIONS FOR VIOLATIONS

Section 1

VIOLATIONS IN THE REGISTRATION, MANAGEMENT, AND USE OF CERTIFICATES OF ELIGIBILITY FOR AUDIT SERVICES

Article 18. Sanctions for violations concerning the application file for a Certificate of Eligibility for Audit Services Business

1. Warning shall be imposed on individuals, legal representatives of auditing organizations, and auditing organizations that commit any of the following violations to obtain a Certificate of Eligibility for Audit Services Business:

a) Falsely declaring information in the application file for a Certificate of Eligibility for Audit Services Business;

b) Forgery or false declaration in the application file for a Certificate of Eligibility for Audit Services Business;

c) Confirming false or forged documents, or false declarations in the application file for a Certificate of Eligibility for Audit Services Business.

2. Measures to remedy consequences: Compel the destruction of all falsely declared documents, forged documents, or false declarations.

Article 19. Sanctions for violations concerning the management and use of Certificates of Eligibility for Audit Services Business

1. Warning shall be imposed on auditing organizations that fail to submit Certificates of Eligibility for Audit Services Business to the Ministry of Finance when there is a decision to revoke them, except where otherwise provided by law.

2. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on auditing organizations that fail to process adjustments to Certificates of Eligibility for Audit Services Business when changes requiring adjustment occur as prescribed.

3. Suspension of the right to use Certificates of Eligibility for Audit Services Business for a period of 12 to 24 months for auditing organizations that commit any of the following violations:

a) Forgery, alteration, or tampering with Certificates of Eligibility for Audit Services Business;

b) Renting or lending Certificates of Eligibility for Audit Services Business.

4. Measures to remedy consequences:

a) Compel the destruction of forged, altered, or tampered Certificates of Eligibility for Audit Services Business;

b) Compel the return of all illegal profits obtained through the implementation of the violation stipulated in Point b of Clause 3 of this Article.

Section 2

VIOLATIONS IN THE ACTIVITIES OF AUDITING COMPANIES AND FOREIGN AUDITING COMPANY BRANCHES IN VIETNAM

Article 20. Sanctions for violations of regulations on auditing service business operations of auditing enterprises

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on organizations that have not been granted a Certificate of Eligibility for Auditing Service Business Operations but have not processed the cancellation of auditing service business operations in their Enterprise Registration Certificate, Business Registration Certificate, or Investment Certificate within six months from the date of the most recent business registration change.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on organizations that do not meet the conditions for auditing service business operations as prescribed but use the term "auditing" in their name.

3. A fine of from VND 40,000,000 to VND 50,000,000 shall be imposed on organizations providing auditing services without having been granted a Certificate of Eligibility for Auditing Service Business Operations.

4. A fine of from VND 40,000,000 to VND 50,000,000 shall be imposed on auditing organizations that continue to operate the services specified in Clause 1, Article 40 of the Law on Independent Auditing after their Certificate of Eligibility for Auditing Service Business Operations has been revoked.

5. Measures to remedy consequences: Compel the return of all unlawful profits obtained through the implementation of violations stipulated in Clause 3 and Clause 4 of this Article.

Article 21. Sanctions for violations of regulations on suspending auditing service business operations

1. Suspension of the right to use the Certificate of Eligibility for Auditing Service Business Operations for a period of from twelve to twenty-four months shall be imposed on auditing organizations that continue to operate the services specified in Clause 1, Article 40 of the Law on Independent Auditing after being suspended from auditing service business operations.

2. Measures to remedy consequences: Compel the return of all unlawful profits obtained through the implementation of the violation stipulated in Clause 1 of this Article.

Section 3

VIOLATIONS OF REGULATIONS ON THE MANAGEMENT AND USE OF AUDITOR CERTIFICATES AND UPDATING KNOWLEDGE FOR AUDITORS

Article 22. Sanctions for violations of regulations on auditor certification examination application files and examinations

1. A warning or a fine of from VND 500,000 to VND 1,000,000 shall be imposed on individuals who forge, misrepresent academic degrees, certificates, and other documents in their application files to qualify for the auditor certification examination.

2. A fine of from VND 3,000,000 to VND 5,000,000 shall be imposed on organizations that inaccurately certify documents in application files to qualify for the auditor certification examination.

3. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on individuals who commit any of the following violations:

a) Having another person take the auditor certification examination on their behalf;

b) Taking the auditor certification examination on behalf of another person.

4. Measures to remedy consequences:

a) Compel the destruction of all forged, misrepresented academic degrees, certificates, and documents in the application file for the auditor certification examination as stipulated in Clause 1 of this Article;

b) Compel the return of all illegal profits obtained through the implementation of the violation stipulated in Point b of Clause 3 of this Article.

Article 23. Sanctions for violations of regulations on the management and use of auditor certificates

1. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on auditors who commit any of the following violations:

a) Forging, erasing, or altering auditor certificates;

b) Renting, lending, or allowing others outside their current workplace to use their auditor certificates to perform accounting and independent auditing activities.

2. A fine of from VND 40,000,000 to VND 50,000,000 shall be imposed on organizations that rent, lend, or allow persons not working at their organization to use auditor certificates to perform accounting and independent auditing activities.

3. Measures to remedy consequences:

a) Compel the destruction of all forged, erased, or altered documents as stipulated in Point a, Clause 1 of this Article;

b) Compel the return of all unlawful profits obtained through the implementation of the violations stipulated in Point b, Clause 1 of this Article.

Article 24. Sanctions for violations concerning the updating of knowledge for auditors

1. A warning shall be imposed on organizations approved by the Ministry of Finance to organize courses for updating knowledge for auditors, and auditing enterprises approved by the Ministry of Finance to organize such courses for their own auditors (collectively referred to as organizations) if they commit any of the following violations:

a) Reporting results of organizing courses for updating auditor knowledge late as prescribed;

b) Not monitoring or taking attendance of auditors participating in update courses;

c) Not collecting feedback from participants on the quality of the update course on the evaluation form;

d) Not issuing certificates to auditors who have participated in knowledge update courses.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on units or organizations that conduct knowledge updates for auditors without approval from the Ministry of Finance.

3. Suspension of the organization of knowledge update courses for auditors for a period of three to six months from the date the sanction decision takes effect shall be imposed on organizations committing any of the following violations:

a) Organizing knowledge update courses for auditors not in accordance with the content and program registered with the Ministry of Finance;

b) Arranging lecturers for knowledge update courses for auditors who do not meet the required conditions;

c) Not reporting the results of organizing knowledge update courses for auditors as prescribed;

d) Reporting inaccurate numbers of auditors participating in update courses;

đ) Reporting inaccurate hours of update training for auditors;

e) Issuing Certificates of Participation in Knowledge Update Courses to auditors who did not actually participate in the update courses;

g) Not retaining complete records of the organization of knowledge update courses for auditors as prescribed.

4. Measures to remedy consequences: Compel the return of all unlawful profits obtained through the implementation of violations stipulated in Clause 2 of this Article.

Section 4

VIOLATIONS OF REGULATIONS ON PROFESSIONAL REGISTRATION AND AUDITOR REGISTRATION CERTIFICATES

Article 25. Sanctions for violations concerning the registration dossier of auditors

1. A warning shall be imposed on individuals committing any of the following violations:

a) Falsely declaring information in the registration dossier to meet the requirements for obtaining an Auditor Registration Certificate;

b) Falsifying or misrepresenting academic qualifications or certificates in the registration dossier to meet the requirements for obtaining an Auditor Registration Certificate;

c) Providing false confirmation of documents in the registration dossier to meet the requirements for obtaining an Auditor Registration Certificate.

2. A warning shall be imposed on organizations providing false confirmation of information and documents in the registration dossier to meet the requirements for issuing an Auditor Registration Certificate.

3. Measures to remedy consequences: Compel the destruction of all falsified, misrepresented, or falsely declared documents.

Article 26. Sanctions for violations concerning the management and use of Auditor Registration Certificates

1. A warning shall be imposed on organizations or individuals who fail to return Auditor Registration Certificates to the Ministry of Finance as prescribed.

2. A fine of VND 10,000,000 to VND 20,000,000 shall be imposed on individuals using expired or invalid Auditor Registration Certificates to perform accounting and independent audit activities.

3. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed on auditors performing services for other organizations or individuals outside their current workplace, or using their own Auditor Registration Certificates to perform accounting and independent audit activities.

4. A fine of VND 40,000,000 to VND 50,000,000 shall be imposed on organizations committing any of the following violations:

a) Falsifying, erasing, or altering Auditor Registration Certificates;

b) Using expired or invalid Auditor Registration Certificates to perform accounting and independent audit activities.

5. Revocation of the right to use the certificate of eligibility for conducting auditing services for a period of twelve to twenty-four months shall be imposed on auditing organizations hiring, borrowing, or using Auditor Registration Certificates of auditors working elsewhere to perform accounting and independent audit activities.

6. Measures to remedy consequences:

a) Compel the return of all unlawful profits obtained through the implementation of violations stipulated in Clauses 2, 3, and 4 of this Article;

b) Compel the destruction of falsified Auditor Registration Certificates for organizations committing violations stipulated in Point a of Clause 4 of this Article.

Section 5

VIOLATIONS OF REGULATIONS ON AUDITING ACTIVITIES

Article 27. Sanctions for violations concerning the purchase of professional liability insurance for practicing auditors or the establishment of a risk reserve fund

1. A warning or a fine from VND 500,000 to VND 1,000,000 shall be imposed on auditing organizations that purchase professional liability insurance for practicing auditors or establish a risk reserve fund not in accordance with the regulations of the Ministry of Finance.

2. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on auditing organizations that fail to purchase professional liability insurance for practicing auditors or establish a risk reserve fund.

Article 28. Sanctions for violations concerning acceptance of audit engagements

1. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on auditing organizations that accept audit engagements from clients when such requests contravene professional ethics, professional requirements, or legal provisions.

2. Measures to remedy consequences: Compel the return of all unlawful profits obtained through the implementation of the violation stipulated in Clause 1 of this Article.

Article 29. Sanctions for violations concerning audit engagement agreements

1. A warning shall be imposed on auditing organizations that enter into audit engagement agreements with clients or entities being audited without including all required contents as prescribed when providing audit services to clients or entities being audited.

2. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on auditing organizations and clients that do not conclude audit engagement agreements before conducting audits.

3. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on auditing organizations that do not conclude audit engagement agreements with clients when providing audit services.

Article 30. Sanctions for violations concerning confidentiality

1. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on individuals who disclose information related to audit files, clients, or entities being audited, except where such disclosure is approved by the client or entity being audited or as provided by law.

2. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on auditing organizations that fail to establish and operate internal control systems to ensure compliance with confidentiality obligations.

3. Suspension of auditing practice for a period of three to six months from the date the sanction decision takes effect for practicing auditors who use information related to audit files, clients, or entities being audited to infringe upon the interests of the State, public interest, or lawful rights and interests of agencies, organizations, or individuals.

4. Suspension of auditing service operations for a period of three to six months from the date the sanction decision takes effect for auditing organizations that use information related to audit files, clients, or entities being audited to infringe upon the interests of the State, public interest, or lawful rights and interests of agencies, organizations, or individuals.

5. Remedial measures: Compel the return of any unlawful gains obtained through the violation stipulated in Clause 1 of this Article.

Article 31. Sanctions for violations concerning audit reports

1. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on practicing auditors who commit any of the following violations:

a) Signing an audit report beyond their authority as prescribed;

b) Signing an audit report prior to the signing date of the audited financial statements.

2. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed on individuals who sign an audit report when they are not practicing auditors.

3. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed on auditing organizations that commit any of the following violations:

a) Assigning a practicing auditor to sign an audit report beyond their authority as prescribed;

b) Issuing an audit report with a signing date earlier than the signing date of the audited financial statements;

c) Preparing an audit report without the required signatures of practicing auditors as prescribed;

d) Failing to explain or failing to provide timely and complete explanations regarding matters excluded from the audit report as requested by competent authorities or representatives of the owners of the audited entity.

4. Suspension of auditing practice for a period of three to six months from the date the sanction decision takes effect for practicing auditors who commit any of the following violations:

a) Signing an audit report for the same audited entity for more than three consecutive years;

b) Signing an audit report when the Certificate of Registration for Auditing Practice has expired or lost its validity.

5. Suspension of auditing service operations for a period of three to six months from the date the sanction decision takes effect for auditing organizations that commit any of the following violations:

a) Assigning someone to sign an audit report who is not a practicing auditor;

b) Assigning a practicing auditor to sign an audit report for the same audited entity for more than three consecutive years;

c) Assigning a practicing auditor to sign an audit report when the Certificate of Registration for Auditing Practice has expired or lost its validity.

Chapter 6

VIOLATIONS OF INDEPENDENCE REQUIREMENTS

Article 32. Penalty for Violations of the Independence Requirements for Audit Participants

1. A warning shall be imposed on audit participants who commit any of the following violations:

a) Providing false information or introductions about the qualifications, experience, and service-providing capabilities of practicing auditors and auditing firms, including foreign auditing firm branches in Vietnam;

b) Engaging in unfair competition practices to solicit clients, such as obstructing, enticing, bribing, colluding with clients, and other forms of unhealthy competition.

2. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on audit participants who commit any of the following violations:

a) Purchasing, receiving gifts, holding shares, or equity contributions of the audited entity regardless of quantity;

b) Trading bonds or other assets of the audited entity that affect independence according to accounting and auditing ethical standards;

c) Receiving or demanding any amount of money or benefits from the audited entity other than agreed-upon service fees and costs in the contract;

d) Harassing or deceiving clients or audited entities;

đ) Interfering in the business operations of clients or audited entities during the audit process.

3. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on practicing auditors who commit any of the following violations:

a) Conducting audits when independence cannot be guaranteed, lacking professional competence, or failing to meet legal requirements;

b) Conducting audits when the client or audited entity requests actions contrary to professional ethics, professional expertise, or legal regulations.

4. Suspension from practicing auditing for a period of six months to one year from the date the penalty decision takes effect for practicing auditors who commit any of the following violations:

a) Colluding with the audited entity to falsify accounting records, financial reports, audit files, and misrepresent audit results;

b) Falsifying or misreporting audit files.

5. Revocation of the right to use the Registration Certificate for Practicing Auditing for a period of twelve months to twenty-four months from the date the penalty decision takes effect for practicing auditors who commit any of the following violations:

a) Practicing auditing as an individual;

b) Working for two or more auditing firms or foreign auditing firm branches in Vietnam simultaneously;

c) Investing capital in two or more auditing firms.

6. Remedial Measures: Compelling the return of illegal profits obtained through the violations stipulated in Clause 2, Clause 3, and Clause 4 of this Article.

Article 33. Penalty for Violations of the Independence Requirements for Auditing Organizations

1. A warning shall be imposed on auditing organizations that commit any of the following violations:

a) Providing false information or introductions about the qualifications, experience, and service-providing capabilities of practicing auditors, auditing organizations, and foreign auditing firm branches in Vietnam;

b) Engaging in unfair competition practices to solicit clients, such as obstructing, enticing, bribing, colluding with clients, and other forms of unhealthy competition.

2. A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed on auditing organizations that commit any of the following violations:

a) Purchasing, receiving gifts, holding shares, or equity contributions of the audited entity regardless of quantity;

b) Trading bonds or other assets of the audited entity that affect independence according to accounting and auditing ethical standards;

c) Receiving or demanding any amount of money or benefits from the audited entity other than agreed-upon service fees and costs in the contract;

d) Harassing or deceiving clients or audited entities;

đ) Interfering in the business operations of clients or audited entities during the audit process;

e) Collecting debts for the audited entity.

3. Suspension from providing auditing services for a period of six months to one year from the date the penalty decision takes effect for auditing organizations that commit any of the following violations:

a) Colluding with the audited entity to falsify accounting records, financial reports, audit files, and misrepresent audit results;

b) Falsifying or misreporting audit files;

c) Conducting audits when prohibited from doing so under legal regulations.

4. Remedial Measures: Compelling the return of illegal profits obtained through the violations stipulated in Clause 2 and Clause 3 of this Article.

Section 7

VIOLATIONS OF THE REQUIREMENTS FOR THE AUDITED ENTITY

Article 34. Sanctioning violations concerning the selection of auditing organizations and practicing auditors

1. A fine of from twenty million to thirty million Vietnamese dong shall be imposed on the audited entity that hires an auditing organization when such organization does not conduct audits in accordance with the law.

2. A fine of from thirty million to forty million Vietnamese dong shall be imposed on the audited entity that hires an auditing organization that does not meet the conditions to provide auditing services as stipulated by the law.

3. A fine of from forty million to fifty million Vietnamese dong shall be imposed on the audited entity that fails to conduct mandatory audits for annual financial reports, final project settlement reports, consolidated financial statements, comprehensive financial statements, and other auditing tasks as prescribed by the law on independent auditing and related laws.

Article 35. Sanctioning violations concerning the conclusion of audit contracts for annual financial reports

1. A warning shall be issued to enterprises and organizations that are required to have their annual financial reports audited if they conclude audit contracts for annual financial reports that do not fully comply with the prescribed contents.

2. A fine of from ten million to twenty million Vietnamese dong shall be imposed on enterprises and organizations that commit any of the following violations:

a) Enterprises and organizations that are required to have their annual financial reports audited conclude audit contracts for annual financial reports later than the prescribed deadline;

b) Enterprises and organizations fail to conclude audit contracts before conducting the audit.

3. A fine of from twenty million to thirty million Vietnamese dong shall be imposed on enterprises and organizations that are required to have their annual financial reports audited but fail to conclude audit contracts for annual financial reports as prescribed.

Article 36. Sanctioning violations related to the audit process

1. A warning shall be issued to individuals and organizations that refuse or fail to provide complete, accurate, truthful, timely, and objective information and documents as required by practicing auditors or auditing organizations relevant to the audit.

2. A fine of from ten million to twenty million Vietnamese dong shall be imposed on the audited entity that fails to explain or inadequately and untimely explains matters excluded from the audit report as required by the competent authority.

3. A fine of from twenty million to thirty million Vietnamese dong shall be imposed on organizations that commit any of the following violations:

a) Bribe, solicit, or collude with members participating in the audit and auditing organizations to distort accounting records, financial reports, audit files, and audit reports;

b) Threaten, retaliate against, or coerce members participating in the audit to distort the audit results;

c) Conceal violations of financial and accounting laws;

d) Obstruct work and limit the scope of the audit.

4. Measures to remedy consequences: Order correction of false or misleading information for violations stipulated in Point a and Point b Clause 3 of this Article.

Article 37. Sanctioning violations concerning the audit of final project settlement reports

A fine of from thirty million to forty million Vietnamese dong shall be imposed on enterprises and organizations implementing national key projects, group A projects using state capital, except those in fields classified as state secrets under the law, if they fail to conduct audits for final project settlement reports.

Section 8

VIOLATIONS CONCERNING AUDIT FILES

Article 38. Sanctions for violations of regulations on preparing audit files

1. Suspension from practicing auditing for a period of six to twelve months from the date the sanction decision takes effect for auditors who fail to prepare an audit file for an audit engagement.

2. Suspension of business operations providing auditing services for a period of six to twelve months from the date the sanction decision takes effect for auditing organizations that fail to prepare an audit file for an audit engagement.

Article 39. Sanctions for violations of regulations on preserving and storing audit files

A fine of five million to ten million Vietnamese dong shall be imposed on auditing organizations that commit any of the following violations:

1. Preserving and storing audit files inadequately and securely, resulting in damage or loss of audit files during their use and within the retention period.

2. Delaying the archiving of audit files beyond twelve months from the issuance date of the audit report of the audit engagement.

3. Failing to store audit files either in paper form or electronically.

4. Failing to design and implement policies and procedures to maintain the confidentiality, security, integrity, accessibility, and recoverability of audit files as prescribed by auditing standards.

5. Failing to design and implement policies and procedures for storing audit files for a minimum of ten years from the issuance date of the audit report of the audit engagement as prescribed by auditing standards.

Article 40. Sanctions for violations of regulations on destroying audit files

1. A fine of ten million to twenty million Vietnamese dong shall be imposed on auditing organizations that commit any of the following violations:

a) Deciding to destroy audit files without proper authority;

b) Destroying audit files without establishing a destruction committee, not following the prescribed methods and procedures, and failing to prepare a destruction record as required.

2. A fine of twenty million to thirty million Vietnamese dong shall be imposed on auditing organizations that prematurely destroy audit files before the retention period expires or intentionally damage audit files.

Section 9

VIOLATIONS OF REGULATIONS ON AUDITING FINANCIAL REPORTS OF PUBLIC INTEREST ENTITIES

Article 41. Sanctions for violations of regulations on providing audit or review services to public interest entities

1. A fine of forty million to fifty million Vietnamese dong shall be imposed on public interest entities that select auditing organizations to provide audit or review services when such organizations have not been approved by the Ministry of Finance or have been suspended or revoked of their approval status.

2. Suspension from practicing auditing for a period of six to twelve months from the date the sanction decision takes effect for auditors who perform audits, sign audit reports, or issue review results for public interest entities without approval from the Ministry of Finance or when they have been suspended or revoked of their approval status.

3. Suspension of business operations providing auditing services for a period of six to twelve months from the date the sanction decision takes effect for auditing organizations that provide audit or review services to public interest entities without approval from the Ministry of Finance or when they have been suspended or revoked of their approval status.

4. Measures to remedy consequences: Compelling the return of illegal gains obtained through the implementation of violations stipulated in Clause 1, Clause 2, and Clause 3 of this Article.

Article 42. Penalty for violation of regulations on publicizing information in transparency reports

1. A warning shall be imposed on auditing organizations that commit any of the following violations:

a) Failure to publish and update complete information in the transparency report on the electronic information website as prescribed;

b) The transparency report published does not have the signature of the representative authorized by law for the auditing organization or the person authorized;

c) Implementing the publication of information in the transparency report beyond the deadline of ninety days from the end of the fiscal year.

2. A fine of between five million and ten million dong shall be imposed on the auditing organization that commits any of the following violations:

a) Failure to establish an electronic information website as prescribed;

b) Publishing false information in the transparency report.

3. Remedial measures: Compel correction of the falsely published information.

Article 43. Penalty for violation of regulations on registration to audit public interest entities

1. A fine of between five million and ten million dong shall be imposed on individuals and auditing organizations that commit any of the following violations to obtain approval to audit public interest entities:

a) Falsely declaring actual conditions in the application for approval to audit public interest entities;

b) Forgery or misrepresentation of the application for approval to audit public interest entities;

c) Confirming false or forged documents, or misrepresented documents in the application for approval to audit public interest entities.

2. Measures to remedy consequences: Compel the return of all unlawful profits obtained through the implementation of the violation stipulated in Clause 1 of this Article.

Article 44. Penalty for violation of regulations related to the responsibility of public interest entities

A fine of between ten million and twenty million dong shall be imposed on public interest entities that commit any of the following acts:

1. Failure to establish and operate an internal control system.

2. Failure to organize internal audits as prescribed by law.

Article 45. Penalty for violation of independence regulations

1. A fine of between five million and ten million dong shall be imposed on individuals who have conducted an audit of a public interest entity and now hold management, executive, supervisory board member, or chief accountant positions at that public interest entity if the time elapsed from the end of the audit to assuming these positions is less than twelve months.

2. A fine of between twenty million and forty million dong shall be imposed on public interest entities that approve an auditor to conduct financial statement audits for five consecutive fiscal years.

3. Suspension of auditing practice for a period of three to six months from the date the penalty decision takes effect for auditors who conduct audits for public interest entities for five consecutive fiscal years.

4. Suspension of auditing service business operations for a period of three to six months from the date the penalty decision takes effect for auditing organizations that assign auditors to conduct financial statement audits for a public interest entity for five consecutive fiscal years.

Section 10

VIOLATIONS OF REGULATIONS ON THE PROVISION AND USE OF AUDIT SERVICES ACROSS BORDERS

Article 46. Penalty for violation of regulations on conditions for providing cross-border audit services

Suspension of provision of cross-border audit services in Vietnam for a period of twenty-four months from the date the penalty decision takes effect for foreign auditing firms that commit any of the following violations:

1. Providing cross-border audit services in Vietnam without registering with the Ministry of Finance of Vietnam to obtain certification of eligibility to provide cross-border audit services in Vietnam.

2. Providing cross-border audit services when failing to maintain any of the prescribed conditions.

3. Forgery, alteration, or tampering with the application for registration to provide cross-border audit services.

Article 47. Penalty for violations concerning enterprises and organizations using cross-border audit services

A fine of VND 20,000,000 to VND 30,000,000 shall be imposed on enterprises and organizations that make payments and transfers related to the provision of cross-border audit services without conducting such transactions through a permitted credit institution in accordance with Vietnamese laws on foreign exchange.

Article 48. Penalty for violations regarding methods of providing cross-border services

Suspend the provision of cross-border audit services in Vietnam for a period of 12 to 24 months from the date the penalty decision takes effect for foreign auditing firms that commit any of the following violations, and suspend business operations for a period of 6 to 12 months from the date the penalty decision takes effect for domestic auditing firms in Vietnam:

1. Not forming a joint venture with a domestic auditing firm that meets the conditions for providing audit services when providing cross-border audit services.

2. Forming a joint venture with a domestic firm that does not meet the conditions for providing audit services when providing cross-border audit services.

3. Forming a joint venture with a foreign auditing firm to provide cross-border services without ensuring all conditions for operating audit services as stipulated.

4. Not entering into an audit contract in accordance with Vietnamese law when providing cross-border audit services.

5. The audit contract for cross-border audit services does not contain signatures of the legal representatives of the foreign auditing firm, the domestic auditing firm, and the audited entity.

6. Not establishing a joint venture agreement for the provision of cross-border audit services as required.

7. The joint venture agreement does not clearly define the responsibilities of the foreign auditing firm and the domestic firm in providing cross-border audit services.

8. Not assigning an auditing practitioner to oversee the audit work within their respective responsibilities as stipulated.

9. The audit report does not contain signatures of the legal representatives of the foreign auditing firm, the domestic auditing firm, and the auditing practitioners responsible for the audit work within each firm's contract.

10. The audit contract, joint venture agreement, audit file, and audit report are not simultaneously established in both Vietnamese and English languages.

Article 49. Penalty for violations concerning the obligations of enterprises providing cross-border audit services

1. A fine of VND 40,000,000 to VND 50,000,000 shall be imposed on foreign auditing firms that commit any of the following violations:

a) Failure to submit the financial statements of the preceding year as required or submission beyond the deadline;

b) Failure to timely and fully report the situation of implementing contracts for providing cross-border audit services arising in Vietnam according to the prescribed form;

c) Failure to fulfill other obligations of auditing firms as stipulated in the Law on Independent Auditing of Vietnam.

2. Suspend the provision of cross-border audit services in Vietnam for a period of 12 to 24 months from the date the penalty decision takes effect for foreign auditing firms that commit any of the following violations:

a) Committing prohibited acts or situations where audits cannot be conducted as stipulated in the Law on Independent Auditing of Vietnam;

b) Failure to comply with Vietnamese auditing standards when providing cross-border audit services in Vietnam;

c) Failure to report or reporting inaccurately the situation of implementing contracts for providing cross-border audit services arising in Vietnam;

d) Failure to send a representative to report and explain to relevant Vietnamese authorities regarding the audit contract, audit file, audit report, and other issues related to the provision of cross-border services in Vietnam.

Article 50. Sanctioning Violations Regarding Joint Ventures in Providing Cross-border Audit Services

Suspend the provision of audit services for a period of six to twelve months from the date the sanction decision takes effect for domestic audit firms that form joint ventures with foreign audit firms and commit any of the following violations:

1. Failure to retain all audit files of joint venture audits conducted.

2. Failure to provide or timely and fully provide audit files of joint venture audits conducted to competent authorities upon request.

3. Failure to explain or timely and fully explain to competent authorities regarding audit reports, audit files, and other issues arising from joint venture audits with foreign audit firms.

4. Failure to report on the implementation of joint ventures with foreign audit firms in providing cross-border audit services as prescribed.

5. Failure to cooperate with authorized agencies in quality control of audit services for joint venture contracts with foreign audit firms.

Section 11

VIOLATIONS OF ANNOUNCEMENT AND REPORTING REQUIREMENTS

Article 51. Sanctioning Violations of Obligations to Announce and Report by Audit Organizations

1. Issue a warning to audit firms that fail to notify the Ministry of Finance in writing along with copies of relevant documents about the establishment or cessation of operations of their overseas branches.

2. Impose a fine of between two million and three million Vietnamese dong on audit firms and audit firm branches that notify the Ministry of Finance late when there are changes in:

a) The list of practicing auditors;

b) The name and headquarters location of the firm;

c) The name and location of audit service branch headquarters;

d) Suspension of audit service operations;

e) Termination of audit service branch operations;

f) Annual operation reports and ad hoc reports as required by the Ministry of Finance.

3. Impose a fine of between three million and five million Vietnamese dong on audit firms and audit firm branches that fail to notify the Ministry of Finance when there are changes in:

a) The list of practicing auditors;

b) The name and headquarters location of the firm;

c) The name and location of audit service branch headquarters;

d) Suspension of audit service operations;

e) Termination of audit service branch operations;

f) Annual operation reports and ad hoc reports as required by the Ministry of Finance.

4. Impose a fine of between five million and ten million Vietnamese dong on audit firms and audit firm branches that notify the Ministry of Finance late when:

a) They fail to meet one of the conditions stipulated in Article 21 and Article 31 of the Independent Audit Law and Articles 5, 6, 7, and 8 of Decree No. 17/2012/NĐ-CP dated March 13, 2012, detailing and guiding the implementation of certain provisions of the Independent Audit Law;

b) There are changes in the General Director or Chairman, legal representative, or shareholding ratio of members;

c) They carry out division, separation, merger, conversion, or dissolution.

5. Suspend the provision of audit services for a period of twelve months from the date the sanction decision takes effect for audit firms and audit firm branches that fail to notify the Ministry of Finance when:

a) They fail to meet one of the conditions stipulated in Article 21 and Article 31 of the Independent Audit Law and Articles 5, 6, 7, and 8 of Decree No. 17/2012/NĐ-CP dated March 13, 2012, detailing and guiding the implementation of certain provisions of the Independent Audit Law;

b) There are changes in the General Director or Chairman, legal representative, or shareholding ratio of members;

c) They carry out division, separation, merger, conversion, or dissolution.

Article 52. Penalty for Violation of Obligations to Report and Report on Audit Activities

1. Warning shall be imposed on practicing auditors who fail to report or submit periodic or ad hoc reports to the Ministry of Finance as prescribed when:

a) They cease working at an auditing firm or foreign auditing firm branch in Vietnam registered on their Practice Registration Certificate;

b) Their labor contract with an auditing firm or foreign auditing firm branch in Vietnam expires, is terminated, or undergoes changes that no longer ensure full-time employment as prescribed;

c) The work permit of a foreign practicing auditor expires or becomes invalid;

d) They participate individually as chief accountants (or accounting supervisors), accounting staff, internal auditors, or other positions at entities or organizations outside the auditing organization.

2. A fine of from five million dong to ten million dong shall be imposed on practicing auditors who fail to report or report late to the Ministry of Finance more than fifteen days beyond the prescribed period when:

a) They cease working at an auditing firm or foreign auditing firm branch in Vietnam registered on their Practice Registration Certificate;

b) Their labor contract with an auditing firm or foreign auditing firm branch in Vietnam expires, is terminated, or undergoes changes that no longer ensure full-time employment as prescribed;

c) The work permit of a foreign practicing auditor expires or becomes invalid;

d) They participate as chief accountants (or accounting supervisors), accounting staff, internal auditors, or other positions at entities or organizations outside the auditing organization.

Section 12

VIOLATIONS OF PROVISIONS ON QUALITY CONTROL OF AUDIT SERVICES

Article 53. Penalty for Violation of Provisions on Quality Control of Audit Services by Auditing Organizations

A fine of from twenty million dong to thirty million dong shall be imposed on auditing organizations that commit any of the following violations:

1. Failure to establish a quality control system for audit services, review of financial statements, financial information, and other assurance services.

2. Failure to establish quality control policies and procedures for each audit engagement.

3. Failure to implement quality control measures for audit services, review of financial statements, financial information, and other assurance services.

4. Failure to implement quality control policies and procedures for each audit engagement.

5. Failure to provide or provide timely and complete information and documents as required by authorized agencies or organizations during the quality control process of audits.

6. Providing inaccurate or untruthful information and documents to authorized agencies or organizations during the quality control process of audits.

7. Refusal to explain or cooperate with authorized agencies or organizations during the quality control process of audits.

Chapter IV

AUTHORITY TO ISSUE ADMINISTRATIVE VIOLATION DECISIONS AND IMPOSE PENALTIES IN THE FIELD OF ACCOUNTING AND INDEPENDENT AUDITING

Article 54. Authority to Issue Administrative Violation Decisions in the Field of Accounting and Independent Auditing

Those authorized to issue administrative violation decisions in the field of accounting and independent auditing include:

1. Authorities empowered to impose administrative penalties in the field of accounting and independent auditing as stipulated in Articles 55 and 56 of this Decree.

2. Civil servants, public officials, police officers, and military officers assigned by authorized agencies to inspect and supervise the implementation of accounting work and professional activities of accountants; conducting inspections and supervision of auditing activities, quality control of audit services, and professional activities of auditors while performing their duties have the authority to issue administrative violation decisions within the scope of their duties and tasks assigned.

Article 55. Competence to impose administrative sanctions for violations by Financial Inspectors

1. Financial inspectors at all levels have the authority to impose administrative sanctions for violations in the fields of accounting and independent auditing as follows:

a) To issue warnings;

b) Imposing a fine not exceeding five hundred thousand dong for individuals and not exceeding one million dong for organizations that commit administrative violations;

2. The Director of the Department of Finance's Inspectorate has the authority to impose administrative sanctions for violations in the fields of accounting and independent auditing as follows:

a) To issue warnings;

b) Imposing a fine not exceeding twenty-five million dong for individuals and not exceeding fifty million dong for organizations that commit administrative violations;

c) Applying supplementary sanctions and measures to remedy consequences as provided for in this Decree.

3. The Director of the Ministry of Finance's Inspectorate has the authority to impose administrative sanctions for violations in the fields of accounting and independent auditing as follows:

a) To issue warnings;

b) Imposing a fine up to the highest level prescribed in this Decree for individuals and organizations that commit administrative violations;

c) Applying supplementary sanctions and measures to remedy consequences as provided for in this Decree.

Article 56. Competence to impose administrative sanctions for violations by People's Committees at various levels

1. The Chairman of the People's Committee of communes, wards, towns (collectively referred to as commune level) has the authority to impose administrative sanctions for violations in the field of accounting as follows:

a) To issue warnings;

b) Imposing a fine not exceeding five million dong for individuals and not exceeding ten million dong for organizations that commit administrative violations.

2. The Chairman of the People's Committee of districts, towns, cities under provinces (collectively referred to as district level) has the authority to impose administrative sanctions for violations in the field of accounting as follows:

a) To issue warnings;

b) Imposing a fine not exceeding twenty-five million dong for individuals and not exceeding fifty million dong for organizations that commit administrative violations;

c) Applying supplementary sanctions and measures to remedy consequences as provided for in this Decree.

3. The Chairman of the People's Committee of provinces, centrally governed cities (collectively referred to as provincial level) has the authority to impose administrative sanctions for violations in the fields of accounting and independent auditing as follows:

a) To issue warnings;

b) Imposing a fine up to the highest level prescribed in this Decree for individuals and organizations that commit administrative violations;

c) Applying supplementary sanctions and measures to remedy consequences as provided for in this Decree.

Chapter V

IMPLEMENTING PROVISIONS

Article 57. Organization and Implementation

The Minister of Finance shall be responsible for guiding, inspecting, and supervising the implementation of this Decree.

Article 58. Provisions on Implementation

1. This Decree takes effect from December 1, 2013.

Decree No. 185/2004/NĐ-CP dated November 4, 2004; Decree No. 39/2011/NĐ-CP dated May 26, 2011 of the Government on administrative sanctions for violations in the field of accounting shall cease to be effective from the date this Decree comes into effect.

2. The provisions of this Decree shall be applied to handle violations that occurred before the effective date of this Decree as follows:

Provisions on administrative sanctions for violations in the field of accounting that are more favorable to individuals and organizations committing administrative violations shall be applied; for acts occurring before the effective date of this Decree but discovered or being examined and resolved thereafter.

3. For decisions on administrative sanctions in the field of accounting that have been issued or fully executed before the effective date of this Decree, if individuals or organizations subject to administrative sanctions still lodge complaints, the provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004, and Decree No. 39/2011/NĐ-CP dated May 26, 2011 of the Government on administrative sanctions for violations in the field of accounting shall be applied to resolve them.

4. The ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial people's committees under the central government shall be responsible for implementing this Decree./.