Circular No. 107/2000/TT-BTC guiding the registration for auditing practice

CIRCULAR

Guidelines for Registering to Practice Auditing

Pursuant to the Enterprise Law No. 13/1999/QH 10 dated June 12, 1999 and Decree No. 03/2000/NĐ-CP dated February 3, 2000 of the Government guiding the implementation of certain provisions of the Enterprise Law;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government on tasks, authorities, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 07/CP dated January 29, 1994 of the Government promulgating the Regulations on Independent Auditing in the National Economy and Circular No. 22TC/CĐKT dated March 19, 1994 of the Ministry of Finance guiding the implementation of the Regulations on Independent Auditing in the National Economy;

Implementing Decree No. 30/2000/NĐ-CP dated August 11, 2000 of the Government regarding the abolition of some licenses and the conversion of some licenses into business conditions, the Ministry of Finance stipulates and guides the registration for practicing auditing in independent auditing organizations operating in Vietnam, as follows:

1- General Provisions

1.1-Independent auditing organizations operating in Vietnam must register a list of auditors practicing auditing with the Ministry of Finance.

1.2-Auditors practicing auditing in independent auditing organizations must meet the auditor standards prescribed in Article 9, 10, 12 of the Regulations on Independent Auditing in the National Economy (annexed to Decree No. 07/CP dated January 29, 1994 of the Government) and Point 8, 9 - Part II of Circular No. 22TC/CĐKT dated March 19, 1994 of the Ministry of Finance guiding the implementation of the Regulations on Independent Auditing in the National Economy.

1.3-Auditors working in independent auditing organizations may only have the right to sign audit reports after registering their list of practicing auditors with the Ministry of Finance.

1.4-When performing auditing tasks, auditors must present their Auditor Certificate. When signing audit reports, auditors must clearly record their full name and auditor certificate number issued by the Ministry of Finance.

1.5-In cases where auditors violate laws or professional discipline and ethics, they will be removed from the registered list of practicing auditors.

1.6-Independent auditing organizations using auditors not listed in the registered list of practicing auditors to sign audit reports will be punished according to the Administrative Violations Handling Ordinance (Decree No. 41 - L/CTN dated July 19, 1995 of the President of the Socialist Republic of Vietnam) and Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on administrative penalties in the field of accounting.

1.7-The Ministry of Finance is the agency managing the list of auditors registered to practice auditing in independent auditing organizations, implementing the issuance and revocation of auditor certificates, and handling violations related to the registration of practicing auditors.

2- Conditions for Registering to Practice Auditing

Auditors eligible to register to practice auditing are those who meet the following criteria:

2.1-For Vietnamese auditors:

a-Have a clear background, honest and incorruptible character, without prior criminal records or disciplinary actions in accounting or auditing activities;

b-Hold an Auditor Certificate issued by the Ministry of Finance;

c-Be employed by a legally operating independent auditing organization in Vietnam.

2.2-For foreign auditors:

a-Be permitted to reside in Vietnam for at least one year;

b-Not have been disciplined in accounting or auditing activities;

c-Hold an Auditor Certificate issued by the Ministry of Finance of Vietnam.

In cases where the auditor holds a degree (or certificate) in auditing not issued by the Ministry of Finance of Vietnam, they must participate in an examination organized by the Ministry of Finance of Vietnam on knowledge of Vietnamese economic, financial, accounting, and auditing laws. The language used in the examination is Vietnamese or a commonly used foreign language. Those who pass the examination will be granted an Auditor Certificate of Vietnam by the Ministry of Finance.

d-Be employed by a legally operating independent auditing organization in Vietnam.

2.3-State civil servants currently in office are not allowed to register to practice auditing in independent auditing organizations.

2.4-Auditors previously removed from the registered list of practicing auditors due to legal violations or breaches of professional discipline and ethics will not be allowed to re-register.

3- Procedures for Registering to Practice Auditing

3.1- Application for Registration to Practice Auditing:

Auditors must prepare an application for registration to practice auditing to submit to the independent auditing organization, including:

An application for registration to practice auditing with confirmation from the director of the independent auditing organization (according to Form No. 01 - KTV);

Three 3x4 photographs taken at the time of submitting the application;

An Auditor Certificate issued by the Ministry of Finance or a degree (certificate) in auditing issued by a foreign accounting and auditing professional organization (a copy and a certified translation by a Vietnamese notary public).

3.2-Registration Period:

Annually, the head of the independent auditing organization must prepare a list of auditors applying to register to practice auditing meeting the requirements set out in Section 2 of this Circular (according to Form No. 02 - KTV), along with one set of application documents for all auditors in the list to be submitted to the Ministry of Finance (Accounting System Department) before October 31. Those who have already registered in previous years do not need to submit new applications.

3.3-Supplementary Registration:

In cases of supplementary registration due to newly issued Auditor Certificates or new hires, the independent auditing organization must register the supplementary list of auditors (according to Form No. 02 - KTV) within thirty days from the date the auditor officially starts work or receives the Auditor Certificate.

In cases where the independent auditing organization has auditors who have transferred, retired, or had their right to practice revoked according to the law, the independent auditing organization must notify the Ministry of Finance in writing, accompanied by a list of auditors reduced within thirty days from the date the auditor officially stops working.

4- Management of the List of Registered Auditors Practicing Auditing

4.1-Within fifteen days from the receipt of the list of auditors registered to practice auditing in accordance with regulations, the Ministry of Finance will confirm the list of auditors who have registered to practice auditing for the auditing organization.

4.2-The list of auditors registered to practice auditing must be publicly announced.

5- Implementation Organization

5.1 This Circular shall take effect from the date on which Decree No. 30/2000/NĐ-CP dated August 11, 2000 of the Government comes into force and shall replace Circular No. 04/1999/TT-BTC dated January 12, 1999 of the Ministry of Finance on Guidelines for Registration of Auditing Practice in Independent Auditing Organizations.

5.2 The Auditor Certificate issued by the Ministry of Finance from 1994 shall still be valid for registration of auditing practice under this Circular.

5.3 Auditors and independent auditing organizations must strictly comply with all provisions of this Circular.

5.4 The Director of the Accounting System Department, the Head of the Office, and the Director of the Cadre Organization and Training Department of the Ministry of Finance shall be responsible for guiding, directing, and supervising the implementation of this Circular.

During the implementation process, if there are difficulties or obstacles, please report to the Ministry of Finance for resolution./.

(Form No. 01 - Auditor)

Application for Registration of Auditing Practice

in Independent Auditing Organizations

Respectfully submitted to: the Ministry of Finance

I, Full Name (in capital letters) …Male/Female…

Date of Birth: …

Place of Origin (or Nationality for foreigners) …

Currently working at: …

Professional Qualification:

Graduated from High School: …Major …Year …

University: …Major …Year …

University: …Major …Year …

Academic Degree: …Year …Professional Title: …Year …

Auditor Certificate No.: …Date …

Work Experience:

I hereby apply for registration of auditing practice in independent auditing organizations in Vietnam and commit to strictly comply with the regulations for auditors stipulated in the Regulations on Independent Auditing in the National Economy (annexed to Decree No. 07/CP dated January 29, 1994 of the Government); Circular No. 22 TC/CKKT dated March 19, 1994 on Guidelines for Independent Auditing Regulations and Circular No. 107/2000/TT-BTC dated October 25, 2000 of the Ministry of Finance on Guidelines for Registration of Auditing Practice.

Kindly request the Ministry of Finance to consider and approve.

List of Registered Auditing Practice in Year …

Respected Ministry of Finance, ⁽¹⁾

Company …registers the list of auditors in year …as follows:

(Nationality)

The Ministry of Finance confirms