Circular No. 150/2012/TT-BTC guides annual knowledge updating for registered auditing practitioners

CIRCULAR

Guidelines for annual knowledge update for registered auditing practitioners

đăng ký hành nghề kiểm toán

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

Pursuant to Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Law on Independent Auditing;

The Minister of Finance promulgates this Circular amending and supplementing Clause 1, Article 15 and the attached forms of Circular No. 86/2013/TT-BTC dated June 27, 2013 of the Ministry of Finance concerning the application of preferential treatment regimes in customs administration for enterprises meeting the required conditions as follows:

Considering the proposal of the Director of the Accounting and Auditing System Department;

The Minister of Finance issues this Circular guiding the annual knowledge update for registered auditing practitioners.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the annual knowledge update for registered auditing practitioners as prescribed in point h, Clause 2, Article 11 of the Law on Independent Auditing.

Article 2. Applicability

1. Registered auditing practitioners.

5. International professional organizations in accounting and auditing organize classes for their member auditing practitioners' knowledge update.

6. Other organizations and individuals related to auditing practitioners' knowledge update.

Chapter II

SPECIFIC PROVISIONS

1. The subjects of knowledge update include:

a) Auditing practitioners who have registered for auditing practice;

b) Auditing practitioners who have not yet registered for auditing practice but the period from the date they were granted the auditing practitioner certificate to the date of registration for auditing practice exceeds twelve months.

2. Auditing practitioners who have not yet registered for auditing practice but the period from the date they were granted the auditing practitioner certificate to the date of registration for auditing practice is twelve months or less are not required to update their knowledge.

Article 4. Content and Materials for Knowledge Update

1. Regarding the content of knowledge update:

a) Legal provisions on accounting, auditing, finance, taxation, and relevant economic laws of Vietnam;

b) Management skills, practical experience in accounting and auditing (including accounting and auditing procedures), international accounting and auditing standards, and professional ethics;

c) Knowledge and information related to the profession.

2. Regarding materials for knowledge update:

a) Knowledge update materials must contain the contents stipulated in Clause 1 of this Article;

b) Knowledge update materials may be presented in the form of written documents or electronic data.

Article 5. Time for Knowledge Update

1. The minimum time for knowledge update is forty hours in the year immediately preceding the year of registration for auditing practice, including at least twenty hours of knowledge update on Vietnamese accounting and auditing laws and four hours of knowledge update on professional ethics.

3. The number of hours of annual knowledge update for auditing practitioners is accumulated from August 16 of the previous year to August 15 of the following year.

Article 6. Forms of knowledge updating

a) Courses organized by professional associations approved by the Ministry of Finance for all auditors;

b) Courses organized by training institutions approved by the Ministry of Finance for all auditors;

c) Courses organized by auditing firms approved by the Ministry of Finance for their own auditors.

2. Auditors who are also members of international accounting and auditing professional organizations shall participate in knowledge updating courses organized by such international organizations.

1. Professional associations, training institutions, and auditing firms must meet general conditions for organizing knowledge updating courses as follows:

a) Have annual plans and programs for knowledge updating that comply with the provisions of Clause 1, Article 4 of this Circular and must register with the Ministry of Finance;

b) Have a teaching staff participating in teaching in accordance with the provisions of Article 8 of this Circular;

c) Have sufficient facilities to ensure the quality of training such as classrooms, desks, blackboards, teaching aids, and other training equipment (owned or rented);

d) Organize comprehensive updates on all contents prescribed in Clause 1, Article 4 of this Circular;

đ) Not violate regulations on organizing knowledge updating for auditors concluded by the Ministry of Finance within the three years immediately preceding the registration date for organizing knowledge updating for auditors.

2. Specific conditions for organizations:

2.1. For professional associations:

In addition to the conditions stipulated in Clause 1 of this Article, professional associations must also meet the following conditions:

a) Have a regulation on knowledge updating for auditors or a general training regulation including specific content on knowledge updating for auditors, which has been approved by the executive board (or the general assembly);

b) Have a dedicated department responsible for organizing knowledge updating for auditors specified in the Charter or established by a separate decision approved by the executive board (or the general assembly);

c) The knowledge updating for auditors is included in the annual work program approved by the executive board (or the general assembly).

2.2. For training institutions:

In addition to the conditions stipulated in Clause 1 of this Article, training institutions must also meet the following conditions:

a) Be established and operate according to the decision of the competent state agency;

b) Have a major in training at the bachelor's level or higher in the contents prescribed in Point a, Clause 1, Article 4 of this Circular.

2.3. For auditing firms organizing knowledge updating themselves:

In addition to the conditions stipulated in Clause 1 of this Article, auditing firms must also meet the following conditions:

a) Have at least 20 practicing auditors at the time of registration;

b) Have a dedicated training department for knowledge updating in the organizational structure of the firm;

c) Have a training and knowledge updating regulation according to each level of auditor in the firm;

d) Allocate budget for knowledge updating for auditors of the firm.

1. Auditors must have at least 7 years of auditing practice experience.

2. Individuals must have at least 7 years of work, research, or teaching experience related to the content of the teaching.

3. Individuals who are currently or have been members of the drafting committee for accounting standards or international auditing standards.

1. From July 1 to July 15 each year, professional associations, training institutions, and auditing firms that meet the conditions and wish to organize knowledge updates for auditors must submit to the Ministry of Finance an application for organizing knowledge updates for auditors in accordance with Article 10 of this Circular.

2. Within 10 working days from the date of receiving valid applications from professional associations, training institutions, or auditing firms, the Ministry of Finance will review and issue a Decision (according to Model Appendix No. 02/CNKT) approving professional associations, training institutions, or auditing firms to organize knowledge updates for auditors according to the registered content. The approval period is from August 16 of the registration year to August 15 of the following year. In cases where approval is not granted, the Ministry of Finance will provide a written response stating the reasons.

1. For professional associations, the application includes:

a) A registration form for organizing knowledge updates for auditors (according to Model Appendix No. 01/CNKT);

b) A copy of the training regulations;

c) Documentation proving the establishment of a dedicated department responsible for organizing knowledge updates for auditors;

d) Annual knowledge update programs and plans approved by the executive board (or general assembly) of the association;

đ) An outline of lecturers expected to be invited to teach and the proposed locations for classes in compliance with Clause 1 of Article 7 of this Circular.

2. For training institutions, the application includes:

a) A registration form for organizing knowledge updates for auditors (according to Model Appendix No. 01/CNKT);

b) A certified copy of the decision establishing the training institution issued by the competent state authority; Documentation proving the training disciplines offered;

c) Training programs and plans approved by the competent authority of the training institution;

d) An outline of lecturers expected to be invited to teach and the proposed locations for classes in compliance with Clause 1 of Article 7 of this Circular.

3. For auditing firms, the application includes:

a) A registration form for organizing knowledge updates for auditors (according to Model Appendix No. 01/CNKT);

b) A list of at least 20 practicing auditors of the auditing firm;

c) Documentation proving compliance with the provisions of Clause 1 and Clause 2.3 of Article 7 of this Circular.

4. Other provisions:

a) In cases where additional classes are organized outside the plan, professional associations, training institutions, and auditing firms must send a letter to the Ministry of Finance to register changes or additions five days before organizing the class;

b) If professional associations, training institutions, or auditing firms register from the second year onwards, they do not need to submit the documents specified in point b, c of Clause 1, point b of Clause 2, and point c of Clause 3 of this Article if there are no changes compared to the last registration.

1. Auditors participating in knowledge update courses are credited with one hour of knowledge update for every hour of study. The maximum number of hours credited per session is four hours and eight hours per day.

2. Auditors participating in teaching knowledge update courses for other auditors are credited with one and a half hours of knowledge update for every hour of teaching. The maximum number of hours taught per session is four hours and eight hours per day.

3. The maximum number of hours of knowledge update credit for auditors participating in courses organized by international professional organizations on accounting and auditing is twenty hours per year.

4. Auditors must complete the full duration of a course to be credited with the hours of knowledge update for that course. If an auditor does not complete the full duration of a course, they will not be credited with any hours of knowledge update for the time spent in that course.

5. Auditors participating in knowledge update courses organized jointly by professional associations, training institutions, and other units or organizations are credited with hours of knowledge update in accordance with Clause 1 of this Article if the professional association or training institution is the main organizer of the knowledge update courses.

6. Auditors participating in knowledge update courses organized by international professional organizations on accounting and auditing to which they belong are credited with hours of knowledge update in accordance with Clause 1 of this Article if:

a) The auditor is a regular member of the international professional organization on accounting and auditing;

b) The international professional organization on accounting and auditing is a member of the International Federation of Accountants (IFAC) and must comply fully with all obligations required of IFAC members;

đ) The content of the knowledge update is consistent with the content stipulated in Clause 1 of Article 4 of this Circular.

7. Regarding the calculation of knowledge update hours for practicing auditors involved in the drafting process of Vietnamese accounting standards and Vietnamese auditing standards:

a) Only auditors listed in the research, drafting, and updating committees for Vietnamese accounting standards and Vietnamese auditing standards, as decided by the Ministry of Finance or authorized professional organizations, and who directly participate in discussions, reviews, and provide opinions on the content of Vietnamese accounting standards and Vietnamese auditing standards, are credited with knowledge update hours. Time spent in opinion-seeking seminars on Vietnamese accounting standards and Vietnamese auditing standards is not counted.

1. In cases where there is not enough time to update knowledge as stipulated in Clause 1, Article 5 of this Circular due to special reasons (maternity, accidents, prolonged illness exceeding two months), auditors will be allowed to postpone their knowledge update hours for that year if:

a) They have completed at least 20 hours of knowledge update;

b) They submit a request to postpone knowledge update hours for that year to the Ministry of Finance;

c) They provide evidence for the aforementioned reasons.

2. Auditors who are allowed to postpone their knowledge update hours for that year may continue to register for practice in the following year but must complete the remaining required hours of knowledge update from that year within six months from the date of approval of their registration for audit practice. If they fail to update the required number of hours within six months, such auditors will be suspended from practicing audit.

1. For auditors participating in courses organized by professional associations, training institutions, self-organized by auditing firms, or international professional organizations in accounting and auditing, evidence for knowledge update hours is a certificate of attendance for knowledge update which clearly states the name of the course organizer, the participant's name, auditor certification number, subject studied, course duration, and actual hours of study.

2. For auditors participating in teaching knowledge update courses organized by professional associations, training institutions, or international professional organizations in accounting and auditing, evidence for knowledge update hours is a confirmation letter from the course organizer detailing the instructor's name, auditor certification number, subjects taught, teaching period, and hours taught per subject.

3. For auditors participating in discussions, reviews, and providing opinions on Vietnamese auditing standards and Vietnamese accounting standards, evidence for knowledge update hours is a confirmation letter from the organization hosting the discussion or review, accompanied by a meeting invitation (or meeting notice) and a sign-in sheet for each discussion or review session, which clearly states the participant's name and auditor certification number.

Article 14. Archiving Knowledge Update Records for Auditors

1. Knowledge update records must be archived and include:

c) Reports on the results of organizing knowledge update courses for auditors (according to Appendix No. 04/CNKT);

d) Relevant materials related to knowledge update courses as stipulated in Clause 2, Article 4 of this Circular;

đ) Evaluation forms for the quality of knowledge update courses for auditors (according to Appendix No. 05/CNKT) for each knowledge update course;

e) Summary reports on the results of organizing knowledge update courses for auditors (according to Appendix No. 06/CNKT);

g) Attendance sheets signed by each participant;

h) Instructor files for the courses, including: Full name, academic title, degree, professional qualifications, auditor certification number (if applicable), position, workplace, contact address, phone number, email, teaching contract.

2. Knowledge update records for auditors must be retained for a minimum of five years from the year of implementation.

2. Organize classes with a maximum of 200 participants.

4. Within no more than five working days after each knowledge update class, submit the "Report on the Results of Organizing Knowledge Update Classes for Auditors" (in accordance with Form Appendix No. 04/CNKT) to the Ministry of Finance (accompanied by a list of auditors attending the knowledge update class).

5. By no later than August 25th each year, submit the "Comprehensive Report on the Results of Organizing Knowledge Update Classes for Auditors" (in accordance with Form Appendix No. 06/CNKT) to the Ministry of Finance for review and recognition of the hours of knowledge update for auditors.

6. Issue certificates to participants who have completed knowledge updates after each class, clearly stating the name of the organizing entity, the participant's name, auditor certificate number, subject studied, date of the class, and actual hours of study; issue confirmation letters to auditors who have taught in knowledge update classes after each class, clearly stating the instructor's name, auditor certificate number, subjects taught, teaching period, and hours taught for each subject.

8. Require participants in knowledge update classes to evaluate the quality of the class on the "Quality Assessment Form for Knowledge Update Classes for Auditors" (in accordance with Form Appendix No. 05/CNKT). Collect the "Quality Assessment Form for Knowledge Update Classes for Auditors" from participants after each class.

9. Confirm the hours of knowledge update for auditors upon request by the auditor or when required by the Ministry of Finance.

10. Retain records regarding the organization of knowledge update courses for auditors in accordance with Article 14 of this Circular.

Article 16. Responsibilities of Auditors

1. Update knowledge on the contents stipulated in Clause 1 of Article 4 of this Circular.

2. Evaluate the quality of the class on the "Quality Assessment Form for Knowledge Update Classes for Auditors" (in accordance with Form Appendix No. 05/CNKT) and return it to the class organizers after each class.

3. Timely report to the Ministry of Finance any violations by professional associations, training institutions, or auditing firms during the organization of classes.

Article 17. Responsibilities of the Ministry of Finance in managing the organization of knowledge updating for auditors

3. Supervising and inspecting the organization of knowledge updating by professional associations, training institutions, and auditing firms; Promptly identifying and handling violations according to the law.

4. Retaining all relevant files concerning the organization of knowledge updating by professional associations, training institutions, and auditing firms for a minimum period of five years from the year of implementation.

5. Periodically or at random, the Ministry of Finance will conduct inspections on the organization of knowledge updating by professional associations, training institutions, and auditing firms regarding the implementation of knowledge updating.

Article 18. Violations related to knowledge updating

2. Organizing knowledge updating for practicing auditors on contents that do not match those registered.

3. Reporting inaccurately about knowledge updating activities, such as: not organizing classes but reporting as if they were organized, falsely reporting the number of auditors participating in updates, the number of update hours for auditors, incorrectly calculating the required update hours for auditors attending classes.

4. Proxy learning, proxy attendance, proxy signing-in, proxy reporting, or cheating when declaring knowledge update hours.

5. Violating other provisions on organizing knowledge updating for practicing auditors stipulated in this Circular and other relevant laws.

6. Professional associations, training institutions, auditing firms, or auditors violating provisions on organizing knowledge updating shall be subject to penalties as prescribed by current laws.

Chapter III

IMPLEMENTATION

Article 19. Transitional Provisions

1. Auditors who update knowledge in 2012 shall have their knowledge update hours counted from January 1, 2012 to December 31, 2012.

2. Auditors who update knowledge in 2013 shall have their knowledge update hours counted from August 16, 2012 to August 15, 2013, excluding classes already counted for 2012.

Article 20. Effective Date

1. This Circular takes effect from January 1, 2013. Previous regulations on annual knowledge updating for auditors that conflict with this Circular are hereby abolished.

2. During implementation, any difficulties or issues should be promptly reported to the Ministry of Finance for study and appropriate amendments./.