Circular No. 183/2013/TT-BTC On Independent Auditing for Public Interest Entities

CIRCULAR

On independent auditing for entities with public interest

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

Pursuant to the Securities Law No. 70/2006/QH11 dated June 29, 2006 and the Law Amending and Supplementing Certain Provisions of the Securities Law No. 62/2010/QH12 dated November 24, 2010;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

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

At the proposal of the Director of the Department of Accounting and Auditing Regime,

The Minister of Finance issues this Circular on independent auditing for entities with public interest.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular stipulates independent auditing for entities with public interest. Entities with public interest are those defined in Article 4 of this Circular.

Article 2. Independent auditing for credit organizations that are public companies and credit organizations listed or offering securities to the public must comply with the provisions of this Circular, the Law on Credit Organizations, and related laws.

Article 2. Applicability

1. Approved auditing organizations.

2. Entities with public interest.

3. Other organizations and individuals related to the auditing of financial statements, financial information, and other reports of entities with public interest.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. "Annual financial report of entities with public interest"is a financial report prepared in accordance with the law on accounting, including individual financial statements, consolidated financial statements, and consolidated financial statements of entities with public interest if such entities are required to consolidate financial statements or prepare consolidated financial statements according to the law on accounting.

2. "Auditing organization"is an auditing firm and branches of foreign auditing firms operating legally in Vietnam.

3. "Approved auditing organization"is an auditing organization approved by competent state authorities to conduct auditing and review of financial statements, financial information, and other reports of entities with public interest.

4. "Approved practicing auditor"is a practicing auditor approved by competent state authorities to conduct auditing and review of financial statements, financial information, and other reports of entities with public interest.

5. "Competent authority for approval"is the Ministry of Finance for approving auditing for entities with public interest other than those in the securities sector; and the State Securities Commission for approving auditing for entities with public interest in the securities sector.

Article 4. Entities with public interest

Within the scope of guidance of this Circular, entities with public interest include:

1. Entities with public interest in the securities sector, including: large public companies, listed organizations, organizations issuing securities to the public, securities companies, investment securities companies, funds, and fund management companies.

2. Other entities with public interest, including:

a) Public companies except large public companies as specified in Clause 1 of this Article;

b) Insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of non-life insurance enterprises from foreign countries (except insurance enterprises as specified in Clause 1 of this Article);

c) Enterprises and organizations related to the public interest due to the nature and scale of their operations as prescribed by law.

The concept of large public companies is defined in Clause 2 of Article 2 of Circular No. 52/2012/TT-BTC dated April 5, 2012 issued by the Ministry of Finance on the disclosure of information in the securities market.

Article 5. Audit and Review of Financial Statements of Public Interest Entities

1. Annual financial statements and other reports of public interest entities as prescribed by competent state agencies must be audited.

2. Quarterly and semi-annual financial statements of public interest entities, if required by law to be reviewed before publication, must be reviewed by an auditing organization approved to conduct such reviews in accordance with this Circular.

Chapter II
SPECIFIC PROVISIONS

Article 6. Conditions for Approved Auditing Organizations

1. An auditing organization approved to audit public interest entities must meet the following conditions:

a) Possess a Business Registration Certificate for Auditing Services issued by the Ministry of Finance that remains valid;

b) Have a charter capital or authorized capital (for foreign auditing firm branches in Vietnam) of at least 4 billion VND and must continuously maintain net assets on the balance sheet not less than 4 billion VND. From the approval period for the year 2016, the amount of capital mentioned above is 6 billion VND or more;

c) Have a number of practicing auditors of at least seven, including the Director or General Director, who meet the standards stipulated in Article 8 of this Circular. From the approval period for the year 2016, there must be a number of practicing auditors of at least ten;

d) Have a minimum of 24 months of auditing experience in Vietnam calculated from the date the competent authority confirmed the registration list for practicing auditors for the first time or from the date the Business Registration Certificate for Auditing Services was first issued until the date of submitting the application for auditing registration;

đ) Have issued audit reports on financial statements for at least 100 clients from January 1 of the year of application submission to the date of submitting the application for auditing registration. From the approval period for the year 2016, the minimum number of clients is 250 clients;

In case the auditing organization has been approved in the year of application submission, it must additionally meet the condition of having issued audit reports (or review work results reports) on financial statements for at least five public interest entity clients from January 1 of the year of application submission to the date of submitting the application for auditing registration. From the approval period for the year 2016, the minimum number of clients is 10 clients;

e) Have a quality control system meeting the requirements set forth in Vietnamese auditing standards;

g) Have implemented professional liability insurance or established a risk reserve fund in accordance with the regulations of the Ministry of Finance;

h) Not fall under the cases prohibited from consideration and approval as stipulated in Article 12 of this Circular;

i) Submit complete and timely applications for auditing registration in accordance with Articles 10 and 11 of this Circular.

2. For auditing organizations approved to audit public interest entities in the securities sector, in addition to meeting the conditions stipulated in points a, b, e, g, h, and i of Clause 1 of this Article, they must also meet the following conditions:

a) Have a number of practicing auditors of at least ten, including the Director or General Director, who meet the standards stipulated in Article 8 of this Circular. From the approval period for the year 2016, there must be a number of practicing auditors of at least fifteen;

b) Have a minimum of 36 months of auditing experience in Vietnam calculated from the date the competent authority confirmed the registration list for practicing auditors for the first time or from the date the Business Registration Certificate for Auditing Services was first issued until the date of submitting the application for auditing registration;

c) Have issued audit reports on financial statements for at least 150 clients from January 1 of the year of application submission to the date of submitting the application for auditing registration. From the approval period for the year 2016, the minimum number of clients is 300 clients;

In case the auditing organization has been approved in the year of application submission, it must additionally meet the condition of having issued audit reports (or review work results reports) on financial statements for at least ten public interest entity clients in the securities sector from January 1 of the year of application submission to the date of submitting the application for auditing registration. From the approval period for the year 2016, the minimum number of clients is 20 clients.

Article 7. Cases where approved auditing organizations are not allowed to conduct audits for public interest entities

In addition to the cases specified in Article 9 of Decree No. 17/2012/NĐ-CP dated March 13, 2012, providing detailed regulations and guidance on the implementation of certain provisions of the Law on Independent Auditing, approved auditing organizations shall not conduct audits for public interest entities in the following cases:

1. The auditing organization is a client receiving preferential conditions beyond the usual level from the public interest entity.

2. Persons responsible for management and operation, members of the Audit Committee, Chief Accountant (or accounting officer) of the auditing organization are persons responsible for management and operation of the audited public interest entity.

Article 8. Standards for practicing auditors who have been approved

In addition to the standards prescribed in the Law on Independent Auditing, practicing auditors who have been approved must meet the following standards:

1. Their names are listed in the register of qualified auditors eligible to practice auditing, which is publicly disclosed by the Ministry of Finance at the time of submitting the application for registration to perform auditing.

2. They have at least 24 months of actual auditing experience in Vietnam calculated from the date they were recognized by the competent authority as being qualified to practice auditing to the date of submitting the application for registration to perform auditing.

Article 9. Period of review and approval

The review and approval of auditing organizations and practicing auditors meeting the auditing standards and conditions for public interest entities shall be conducted annually. The approval period is calculated according to the Gregorian calendar from January 1 to December 31.

Article 10. Documents for registering to perform auditing for public interest entities

1. Application form for registering to perform auditing for public interest entities (in accordance with Appendix 01).

2. Certified copy of the Business Registration Certificate, Enterprise Registration Certificate, Investment Certificate, and Company Charter.

3. Certified copy of the Certificate of Eligibility for Operating Auditing Services.

4. List of practicing auditors proposed for approval, specifying the actual auditing experience in Vietnam from the date recognized by the competent authority as being qualified to practice auditing.

5. Financial statements and operational situation report of the auditing organization in the immediately preceding year, including:

a) Audited financial statements;

b) Client list as stipulated in point d, Clause 1 or point c, Clause 2 of Article 6 of this Circular;

c) Organizational structure, operational situation, and auditing experience of practicing auditors and the auditing organization;

d) Administrative penalties imposed on the auditing organization for violations of laws (if any);

đ) Significant changes during the fiscal year affecting the organizational structure, operations, and business results of the auditing organization (such as increases or decreases in capital contributions; increases or decreases in registered capital);

e) Significant changes related to practicing auditors during the year (such as increases or decreases in the number of practicing auditors, violations of professional ethics by practicing auditors);

g) Description of the establishment and maintenance of quality control systems in accordance with auditing standards.

6. Certified copy of the insurance policy or certificate of professional liability insurance still in effect if the auditing organization does not establish a professional risk reserve fund.

7. For subsequent registrations, the auditing organization is not required to submit the documents specified in Clause 2, Clause 3, point c, point g Clause 5, and Clause 6 of this Article if there are no changes compared to the previous registration.

Article 11. Examination, Approval, and Public Announcement of Lists of Auditing Organizations and Practicing Auditors

1. From October 1 to October 20 each year, auditing organizations shall submit one set of documents in accordance with Article 10 of this Circular to the Ministry of Finance for approval to conduct audits for public interest entities. In cases where auditing organizations register to audit public interest entities in the securities sector, they shall simultaneously submit one set of documents to the State Securities Commission.

2. During the examination process, if the documents do not comply with the regulations, the competent authority shall notify the auditing organization to complete the documents within ten days from the date of receipt of the documents. The auditing organization must complete the documents before November 5. If the documents do not meet the requirements, the competent authority shall issue a notification to the auditing organization.

3. The Ministry of Finance shall examine, approve, and publicly announce the list of auditing organizations and the list of practicing auditors approved to conduct audits for public interest entities (in the format specified in Appendix 02a, Appendix 02b) on its website and electronic portal before November 15 each year. Auditing organizations and practicing auditors listed in these lists are permitted to conduct audits for public interest entities as stipulated in Clause 2, Article 4 of this Circular.

The State Securities Commission shall examine, approve, and publicly announce the list of auditing organizations and the list of practicing auditors approved to conduct audits for public interest entities in the securities sector on its website and electronic portal before November 20 each year. Auditing organizations and practicing auditors listed in these lists are permitted to conduct audits for public interest entities as stipulated in Clause 1, Article 4 of this Circular.

4. Based on the approved lists of auditing organizations and practicing auditors, public interest entities shall select auditing organizations and practicing auditors to sign contracts for conducting audits for their entities. The lists of auditing organizations and practicing auditors approved to conduct audits for public interest entities and the lists of auditing organizations and practicing auditors approved to conduct audits for public interest entities in the securities sector shall be updated upon decisions made by the competent authorities.

Article 12. Cases Not Subject to Examination and Approval

1. Cases not subject to examination and approval include:

a) Auditing organizations that are currently suspended from operating auditing services according to laws on independent auditing;

b) Auditing organizations that fail to promptly correct and remedy violations as advised by competent state agencies;

c) Auditing organizations that have been involved in disputes regarding audit results and have been concluded by competent state agencies to have committed violations;

d) Auditing organizations whose audit quality does not meet requirements based on the results of inspections or conclusions by competent authorities in the year under review;

đ) Practicing auditors responsible for audit files whose audit quality does not meet requirements based on the results of inspections or conclusions by competent authorities in the year under review;

e) Auditing organizations and practicing auditors who have engaged in acts violating laws related to auditing practice and have been administratively punished by competent authorities according to laws in the year under review;

g) Auditing organizations and practicing auditors who falsify or misrepresent information in registration documents for participating in audits;

h) Auditing organizations and practicing auditors who fail to provide explanations, provide unsatisfactory explanations, or fail to provide relevant information and data concerning auditing activities as required by competent state agencies;

i) Auditing organizations and practicing auditors whose approval status has been revoked and who have not yet completed two years since the revocation;

k) Auditing organizations and practicing auditors who fail to report or file reports as required by laws on independent auditing;

l) Other cases as prescribed by laws.

2. Auditing organizations and practicing auditors falling under any of the cases specified in points d, đ, g, h of Clause 1 of this Article shall not be eligible for examination and approval until twelve months after the decision of the competent authority.

3. Auditing organizations and practicing auditors who do not register to conduct audits or who have registered but have not been approved shall not continue to perform existing audit contracts and other assurance services and shall not enter into new contracts with public interest entities.

Article 13. Suspension or Revocation of Approved Audit Qualification

1. An audit organization or practicing auditor shall have their approved audit qualification suspended in the following cases:

a) The approved audit organization voluntarily withdraws its application to conduct audits;

b) Violation of obligations stipulated in Clauses 4, 5, 6, and 7 of Article 14 of this Circular;

c) Audit quality does not meet requirements based on the results of inspection or conclusions of competent authorities according to accounting standards, accounting regulations, auditing standards, and related laws;

d) The audit organization does not have the required number of practicing auditors with approved qualifications as specified in Point c Clause 1 or Point a Clause 2 of Article 6 of this Circular for three consecutive months;

đ) The audit organization has complaints about audit results that have been concluded by competent authorities to be in violation;

e) The audit organization is suspended from operating audit services according to laws on independent auditing;

g) Practicing auditors have complaints about audit results that have been concluded by competent authorities to be in violation;

h) Practicing auditors are suspended from practicing auditing according to laws on independent auditing or their Certificates of Registration for Auditing Practice have become invalid or lost value.

2. The suspension of the approved audit qualification of an audit organization or practicing auditor takes effect from the date the suspension decision becomes effective and lasts for the period specified in the suspension decision.

3. An audit organization or practicing auditor shall have their approved audit qualification revoked in the following cases:

a) The audit organization has had its Certificate of Eligibility for Operating Audit Services revoked, or its Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate revoked; Practicing auditors have had their Auditor Certificates or Certificates of Registration for Auditing Practice revoked;

b) Serious violations (such as repeated violations, systematic violations) of obligations stipulated in Clauses 4, 5, 6, and 7 of Article 14 of this Circular;

c) Violations of provisions set out in Article 7 of this Circular.

4. An audit organization or practicing auditor whose approved audit qualification has been revoked may only be reconsidered for approval again twenty-four months from the date of revocation.

5. An audit organization or practicing auditor whose approved audit qualification has been suspended or revoked shall not continue to perform audit contracts and other assurance services already signed, nor sign new contracts with public interest entities from the date the suspension or revocation decision becomes effective.

Article 14. Obligations of Approved Audit Organizations and Practicing Auditors

1. Adhere to obligations stipulated in Articles 18 and 29 of the Law on Independent Auditing.

2. Be familiar with and regularly update relevant legal provisions concerning financial statements of audited entities.

3. Conduct audits and issue audit reports for public interest entities within the approved period as stipulated in Article 9 of this Circular.

4. Explain and provide information and data related to audit activities upon request of competent state agencies.

5. During the audit process, if it is found that the audited entity is not complying with laws and regulations related to the preparation and presentation of audited financial statements, they must notify in writing and advise the audited entity to take preventive, corrective, and remedial measures. If the audited entity fails to correct and address the violations, they must include comments in the audit report or management letter according to auditing standards. After issuing the audit report, if there is suspicion or discovery of significant violations by the audited entity due to non-compliance with laws and regulations related to audited financial statements, they must notify in writing the audited entity and third parties according to Vietnamese auditing standards and inform the competent authority approving the audit.

6. Fully and promptly issue management letters to notify the audited entity of:

a) Important matters discovered during the audit process, particularly serious deficiencies in internal controls related to the preparation and presentation of financial statements;

b) Limitations on the scope of the audit leading to a qualified opinion in the audit report, where such limitations arise from the client or the audited entity;

c) The audited entity's refusal to adjust material misstatements in financial statements as recommended by the audit organization, leading to a qualified opinion in the audit report;

d) Non-compliant actions related to the preparation and presentation of financial statements that could result in material misstatements in financial statements.

For matters stipulated in Point d of this Clause, a written notification must also be provided to the representative of the entity's owner (Chairman of the company, Board of Directors, Board of Members, and other representatives of the owner (if any) as prescribed by law) of the audited entity and the competent authority approving the audit no later than thirty days from the date the auditor and the audit organization issue a formal conclusion on the audit opinion or from the date the practicing auditor and the audit organization have reasonable grounds to determine that the audited entity has engaged in non-compliant actions.

7. They shall not delegate part or all of the audit work of public interest entities to unapproved audit organizations, except when using the work of experts as stipulated by auditing standards. In the case of joint ventures or collaborations in auditing public interest entities, it can only be conducted between approved audit organizations.

8. Report to the competent authority for approval when changing name, headquarters, scope of practice, list of practicing auditors, and any changes leading to no longer meeting the conditions for approved auditing within ten days from the date of change.

9. Establish and operate an internal quality control system in accordance with the regulations of the Ministry of Finance.

10. Fully and promptly implement recommendations regarding deficiencies and errors discovered during quality inspections and reviews.

11. Maintain confidentiality of information in accordance with the law.

12. Fulfill other obligations as prescribed by law.

Article 15. Supervision and Quality Inspection

1. The competent authority within its functional scope shall conduct inspections and reviews of audited financial statements of public interest entities.

2. The Ministry of Finance supervises and inspects organizations that have been approved to perform audits for public interest entities. The State Securities Commission directly supervises and inspects organizations that have been approved to perform audits for public interest entities in the securities sector.

3. Content of supervision and inspection:

a) Monitor the conditions for approving audits for public interest entities of audit organizations during the approved period;

b) Monitor the disclosure of information in the transparency report as stipulated in Article 16 of this Circular;

c) Lead and coordinate with the Vietnam Association of Certified Public Auditors to conduct quality inspections of audit services provided by approved audit organizations;

d) Handle and publicly disclose the results of handling on their electronic information website any violations detected through quality inspections of audit services of approved audit organizations.

4. Quality inspections of audits shall be conducted in accordance with the regulations on quality control of audit services. In addition to regular inspections, spot checks may be carried out if approved audit organizations exhibit signs of violating laws, accounting standards, or auditing standards.

5. Scope of quality inspections of audit services includes: Inspecting the quality control systems of approved audit organizations, reviewing audit files; inspecting and evaluating compliance with auditing standards and requirements for independence and professional ethics.

6. After each inspection, a report on the inspection results must be prepared. The inspection result report must detail each step of the inspection process, the content and components of the inspection work, the procedures carried out, conclusions about the inspection results, deficiencies, and recommendations for rectification and improvement.

7. If necessary, the competent authority shall establish a specialized committee to advise on the examination and handling of violations by approved audit organizations, certified public auditors, and public interest entities.

Article 16. Transparency Reports

1. Within ninety days from the end of the fiscal year, approved audit organizations must publish their annual transparency report (in the form attached as Appendix 03) on their website or portal for a minimum period of twelve months.

2. The transparency report must be updated regularly with information within thirty days from the date of any change.

Article 17. Responsibilities of entities with public interest

1. Select an approved auditing organization and practicing auditor to conduct audits of the reports specified in Article 5 of this Circular.

2. Shall not select another approved auditing organization to issue opinions on financial statements that have already been audited by an approved auditing organization, except where permitted by law.

3. Terminate the audit engagement contract signed with the approved auditing organization if such organization is suspended or has had its approval revoked for auditing, or if it is no longer an approved auditing organization. Select another approved auditing organization and practicing auditor to conduct audits of the reports specified in Article 5 of this Circular.

4. Require the approved auditing organization to change the practicing auditor in cases where the practicing auditor is suspended or has had their approval revoked for auditing, or if they are no longer a practicing auditor.

5. Report to the competent authority approving the auditing organization conducting audits for their entity the reasons for changing the approved auditing organization compared to the previous year and the reasons for changing the currently performing approved auditing organization (if applicable).

6. Notify the competent authority approving the auditing organization conducting audits for their entity when violations of independent auditing laws by the practicing auditor and the approved auditing organization are discovered.

7. Provide explanations or supply information and data related to audited financial statements upon request from the competent authority.

8. Fully comply with the obligations stipulated in Article 39 and responsibilities stipulated in Article 57 of the Law on Independent Auditing and other current regulations on independent auditing.

Chapter III
IMPLEMENTATION

Article 18. Implementation Organization

1. This Circular takes effect from January 18, 2014, and replaces Decision No. 89/2007/QD-BTC dated October 24, 2007, of the Minister of Finance regarding the issuance of the Regulation on the Selection of Approved Auditing Enterprises for Issuing Organizations, Listed Organizations, and Securities Trading Organizations.

2. For the 2014 approval period:

a) Auditing organizations registering to conduct audits for entities with public interest in the securities sector must comply with the conditions and documentation requirements set forth in Decision No. 89/2007/QD-BTC dated October 24, 2007.

b) Auditing organizations currently providing auditing services according to the regulations must submit a written request to the Ministry of Finance before January 20, 2014, to be approved to conduct audits for other entities with public interest. The Ministry of Finance will publicly announce the list of approved auditing organizations and practicing auditors for other entities with public interest before January 31, 2014, on its website and electronic portal.

3. Within one year from the date this Circular takes effect, relevant ministries and sectors shall review and establish uniform and appropriate regulations on the conditions for selecting independent auditing organizations qualified to conduct audits for enterprises and organizations in accordance with specialized laws.

4. Ministries, sectors, People's Committees of provinces and centrally-administered cities are responsible for guiding the implementation of this Circular.

5. In the course of implementation, if there are difficulties, please report to the Ministry of Finance for research and resolution./.

 

Appendix 01

(Annexed to Circular No. 183/2013/TT-BTC dated December 4, 2013, of the Ministry of Finance)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------------------

APPLICATION FOR CONDUCTING AUDITS FOR ENTITIES WITH PUBLIC INTEREST

Year ...

Respectfully submitted to:...

1. Company Name:...

2. Address:…

3. Telephone:... Fax:... Email:...

4. Type of enterprise (Limited Liability Company, Partnership, Private):...

5. Business Registration Certificate number:... Date:... Issued by (name of issuing authority):... Issued by

6. Certificate of Eligibility for Auditing Services number:... Date:... Issued by:... Issued by

7. Duration of auditing activities in Vietnam (as of the date of application submission):... months

8. Registered capital, equity on the Balance Sheet at the end of the most recent fiscal year (or actual contributed equity at the time of registration):...

9. Number of practicing auditors proposed for approval:... persons.

10. Number of clients for whom financial statement audits were conducted in Year...:...

Does the company intend to conduct audits for entities with public interest in the securities sector?

□ Yes.

□ No.

The company and its practicing auditors meet the criteria and conditions stipulated in Circular No. 183/2013/TT-BTC dated December 4, 2013, of the Ministry of Finance on independent auditing for entities with public interest.

Documents submitted with the application include:

(1) Certified copies of the Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate and the Company Charter;

(2) Copy of the Certificate of Eligibility for Auditing Services;

(3) List of practicing auditors proposed for approval;

(4) Financial situation report and business operation report of the auditing organization in the previous year, including:

a) Audited financial statements for the year...;

b) List of clients whose financial statements were issued with an audit report in the previous year;

c) List of public interest entities whose financial statements were issued with an audit report (or review report) in the year of application submission (for organizations already approved in the year of application submission);

d) Organizational structure, operations, and auditing experience of the practicing auditors and the auditing organization;

đ) Any legal violations committed by the auditing organization (if any);

e) Significant changes in the fiscal year affecting the organizational structure, operations, and business results of the auditing organization;

g) Significant changes during the year related to practicing auditors (due to increases or decreases in the number of practicing auditors, violations of professional ethics by practicing auditors...).

h) A description of the establishment and maintenance of the quality control system.

(5) Certified copy of the professional liability insurance certificate (if any).

Company ... hereby commits that the information provided in this application and accompanying documents is true. If incorrect, the company will bear full responsibility.

Requesting competent authorities to consider and approve.

Note: In case of registration for the second time onwards, if there are no changes, it is not necessary to submit the documents specified in points (1), (2), (4d) and (4h).

 

ANNEX 02a

(Annexed to Circular No. 183/2013/TT-BTC dated December 4, 2013, of the Ministry of Finance)

LIST OF AUDITING ORGANIZATIONS APPROVED TO PERFORM AUDITS FOR ENTITIES WITH PUBLIC INTEREST IN YEAR ...

(Updated until ...)

Note:

- Auditing organizations listed in this list are only allowed to perform audits for entities with public interest as stipulated in Clause 2, Article 4 of this Circular.

- This list may be subject to change, please refer to the website: www.mof.gov.vn

 

ANNEX 02b

(Annexed to Circular No. 183/2013/TT-BTC dated December 4, 2013, of the Ministry of Finance)

LIST OF PRACTICING AUDITORS APPROVED TO PERFORM AUDITS FOR ENTITIES WITH PUBLIC INTEREST IN YEAR ...

(Updated until ...)

Note: Practicing auditors listed in this list are only allowed to perform audits for entities with public interest as stipulated in Clause 2, Article 4 of this Circular.

- This list may be subject to change, please refer to the website: www.mof.gov.vn

 

ANNEX 03

(Annexed to Circular No. 183/2013/TT-BTC dated December 4, 2013, of the Ministry of Finance)

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
------------------------

TRANSPARENCY REPORT

Year ...

1. Introduction to organizational structure and type of business

- Name of approved auditing organization:

- Main office address:

- Phone number:...Fax number:...Email:...

- Type of business:...

- Description of the organizational structure and type of business of the international auditing organization (if the approved auditing organization is a member of an international auditing organization) and the role of the approved auditing organization within the international auditing organization

- Description of the internal management structure of the approved auditing organization, including:

+ Board of members;

+ Chairman of the board of members, owner of a private enterprise;

+ Management Board or General Management Board;

+ Branches, representative offices (if any) (Detailed addresses, phone numbers, fax numbers, emails of each branch and representative office);

+ Legal representative.

2. Internal Quality Control System

- Description of the internal quality control system (whether it follows the VSQC1 quality control standards);

- Design of policies and procedures to operate the internal quality control system;

- Training programs to develop the internal quality control system;

- Monitoring of the internal quality control system.

3. List of approved practicing auditors

4. Content, schedule, and scope of quality assurance reviews conducted during the year

(Requirement to provide detailed descriptions of activities carried out to ensure quality assurance reviews during the year).

5. List of entities with public interest that have been audited:

(These are entities with public interest for which the auditing organization has performed financial statement audits in the immediately preceding fiscal year, detailed into two categories: Completed and ongoing).

6. Explanation on ensuring the independence of the auditing organization

7. Explanation on training and updating knowledge for practicing auditors:

- Does the company have its own training department to update knowledge for auditors?

- Number of hours updated: including self-updating hours (if any);

- Programs attended for updates, organizing updates (if the company organizes updates itself);

- Lecturers.

8. Financial Information

- Total revenue, including:

+ Revenue from audit services for entities with public interest;

+ Revenue from other services.

- Expenses:

+ Salary and bonus expenses for employees;

+ Professional liability insurance premiums;

+ Other expenses.

- Net profit after tax;

- Tax liabilities to the State budget, including corporate income tax;

- Situation of setting up professional risk reserve funds.

9. Information regarding the basis for determining income for the Management Board.