Circular No. 39/2020/TT-BTC Amending and Supplementing the Reporting System in Some Circulars in the Field of Accounting and Independent Auditing

CIRCULAR

Amending and supplementing reporting regulations in some Circulars in the field of accounting and independent auditing
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Pursuant to Law on Independent Auditing No. 67/2011/QH12 dated March 29, 2011;

Pursuant to Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Pursuant to Decree No. 09/2019/NĐ-CP dated January 24, 2019 of the Government stipulating the reporting regime of administrative agencies;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Management and Supervision of Accounting and Auditing,

The Minister of Finance issues this Circular amending and supplementing reporting regulations in some Circulars in the field of accounting and independent auditing.

Article 1. Amend and supplement some Articles of Circular No. 199/2011/TT-BTC dated December 30, 2011 guiding the implementation of training and issuing certificates for chief accountants as follows:

1. Amend and supplement Clause 2, Article 8 as follows:

"2. Training and supplementary training institutions for chief accountant courses shall be responsible for monitoring and managing certificate stubs issued and submitting reports on the use of certificate stubs for chief accountants with the following contents:

a) Report title: Report on the use of certificate stubs for chief accountants;

b) Content required for reporting:

- Quantity of stubs at the beginning of the period;

- Quantity of stubs received during the period (Certificate stubs received from the Ministry of Finance);

- Quantity of stubs issued during the period (Certificate stubs used);

- Quantity of stubs cancelled (Due to incorrect content; quantity of stubs damaged during storage and preservation; etc.);

- Quantity of stubs remaining at the end of the period (Quantity of unused stubs remaining);

c) Reporting entities: Training and supplementary training institutions for chief accountants.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of sending and receiving reports:

Periodic reports shall be presented in paper form or electronic copies and sent through one of the following methods:

- Direct submission; Submission via postal service;

- Submission via email system;

- Other methods as prescribed by law.

e) Deadline for submission: No later than July 31 of the reporting year for the first six months' report; No later than January 31 of the following year for the second six months' report.

g) Frequency of submission: Semi-annual report.

h) Data closing period: For the first six months of the reporting year, the data closing period is from January 1 to June 30 of the reporting year. For the second six months of the reporting year, the data closing period is from July 1 to December 31 of the reporting year.

i) Outline of the report: In accordance with Appendix No. 001.

k) Statistical table format: In accordance with Appendix No. 001.

l) Guidance on the reporting process: Each year, training and supplementary training institutions for chief accountants shall compile information according to the template and submit it to the Ministry of Finance within the prescribed time limit."

2. Add Appendix No. 001 attached to this Circular.

Article 2. Amend and supplement some Articles of Circular No. 292/2016/TT-BTC dated November 15, 2016 guiding annual knowledge updates for practicing accountants and those registering to practice accounting services as follows:

1. Amend Clause 2, Article 12 as follows:

"2. Within ten days from the date of receipt of the file as stipulated in Clause 1 of this Article, the Ministry of Finance shall issue a written notification to the practicing accountant regarding the deferral or non-deferral of the knowledge update hours.

A practicing accountant who has been deferred knowledge update hours in the current year may continue to practice in the following year if they complete the required number of knowledge update hours before December 15 of the current year and notify the Ministry of Finance in writing or electronically about the completion of the required number of knowledge update hours before December 25 of the current year. Knowledge update hours counted for the current year will not be counted for the following year.

If the practicing accountant fails to complete the required number of knowledge update hours by December 15 of the current year or if the Ministry of Finance does not receive the notification of completion of the required number of knowledge update hours by December 25 of the current year, the practicing accountant will be suspended from practicing accounting services from January 1 to December 31 of the following year."

2. Replace Appendix No. 03/CNKT with Appendix No. 002 attached to this Circular.

3. Amend Point b, Clause 1, Article 14 as follows:

"b) List of participants in knowledge update classes according to the model in Appendix No. 002 attached to this Circular."

4. Amend Clause 4, Article 15 as follows:

"4. Within five working days after each knowledge update class, the list of participants in knowledge update classes according to the model in Appendix No. 002 attached to this Circular must be submitted to the Ministry of Finance in paper form or electronic copies."

Article 3. Amend and supplement some provisions of Circular No. 297/2016/TT-BTC dated November 15, 2016 on issuing, managing, and using the Certificate of Eligibility for Accounting Services Business as follows:

"8. Submit the Report on the Situation of Maintaining Conditions for Accounting Services Business with the following contents:

a) Name of the report: Report on the Situation of Maintaining Conditions for Accounting Services Business.

b) Content required to be reported: Declaration of the situation of maintaining conditions for accounting services business, including:

- Number and date of issuance of the Enterprise Registration Certificate or Investment Registration Certificate, or other equivalent documents at the time of first issuance and most recent issuance;

- Number and date of issuance of the Certificate of Eligibility for Accounting Services Business at the time of first issuance and most recent issuance;

- Information about the full name, position, place of origin, date of birth, ID card/Citizen Identity Card/Passport number, place of permanent residence registration, telephone number, email address, and the certificate of practice registration for the legal representative;

- Information about the General Director/Managing Director (if not concurrently serving as the legal representative), similar to the information about the legal representative;

- List of capital contributors and general partners including their full name, year of birth, position, contribution ratio, and certificate of practice registration (number, validity period);

- List of practicing accountants under employment contracts working full-time at the accounting services business enterprise up to the reporting date, including their full name, year of birth, position, and certificate of practice registration (number, validity period);

- Registered capital at the reporting date including total registered capital up to the reporting date (commitment capital contributed by practicing accountants; actual capital contributed by practicing accountants up to the reporting date; actual capital contributed by organizational members);

- Regarding the purchase of professional liability insurance, including information about the service provider, insurance premium, and list of practicing accountants who have been insured for professional liability in the year;

- Regarding compliance with laws: Specify specific violations of accounting laws, other violations, and the forms of punishment applied, if any;

c) Reporting entity: Accounting services business enterprises.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of sending and receiving reports:

Periodic reports shall be presented in paper form or electronic copies and sent through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submitting the report: No later than August 31 each year or as required by the competent authority.

g) Frequency of submitting the report: Annual report.

h) Cut-off date for report data: From August 16 of the previous year to August 15 of the reporting year or until the required date.

i) Outline of the report: In accordance with Appendix 6 issued together with this Circular.

k) Data reporting form: In accordance with Appendix 6 issued together with this Circular.

l) Guidance on the process of submitting the report: The accounting services business enterprise prepares the annual report on maintaining conditions for accounting services business and submits it to the Ministry of Finance within the prescribed deadline."

2. Amend and supplement Clause 9 of Article 12 as follows:

"9. Submit the Report on the Situation of Operations with the following contents:

a) Name of the report: Annual Operation Report (from January 1 to December 31).

b) Content required for reporting:

The annual operation report of accounting services business enterprises includes the following contents:

- Employee situation including the total number of employees in the enterprise as of December 31; the number of people holding Vietnamese or foreign accounting or auditing certificates; the number of people holding the Certificate of Practice Registration for Accounting Services Business at the enterprise;

- Revenue situation including information on revenue structure by type of service; revenue structure by customer category;

- Business results including information on registered capital, profit margin, and tax payment to the State budget;

- Changes during the year including changes in the enterprise name, legal representative; ownership form, conversion of business form, division, merger, consolidation, increase or decrease in the number of practicing accountants registered;

- Mentioning advantages, difficulties, and recommendations or information provided to the Ministry of Finance during the operation of the accounting services business enterprise;

c) Reporting entity: Accounting services business enterprises.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of sending and receiving reports:

Periodic reports shall be presented in paper form or electronic copies and sent through one of the following methods:

- Direct submission; Submission through postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submitting the report: Before April 10 of the following year.

g) Frequency of submitting the report: Annual report.

h) Cut-off date for report data: From January 1 to December 31 of the reporting year.

i) Outline of the report: In accordance with Appendix 7 issued together with this Circular.

k) Data reporting form: In accordance with Appendix 7 issued together with this Circular.

l) Guidance on the process of submitting the report: The accounting services business enterprise prepares the annual operation report according to the model and submits it to the Ministry of Finance within the prescribed deadline."

Article 4. Amend and supplement some articles of Circular No. 150/2012/TT-BTC dated September 12, 2012 guiding annual knowledge update for registered auditing practitioners, as follows:

1. Amend and supplement Clause 2, Article 12 (which has been amended and supplemented at Clause 4, Article 1 of Circular No. 56/2015/TT-BTC dated April 23, 2015 on amending and supplementing some articles of Circular No. 150/2012/TT-BTC dated September 12, 2012 of the Ministry of Finance guiding annual knowledge update for registered auditing practitioners), as follows:

"2. Within seven working days from the date of receipt of the application and related documents as stipulated in Clause 1 of this Article, the Ministry of Finance shall issue a notification to the auditor regarding whether the updating hours are deferred or not deferred.

An auditor whose updating hours are deferred in the current year may continue practicing in the following year if they complete the remaining updating hours before December 15 of the current year and notify the Ministry of Finance in writing or electronically about the completion of the updating hours before December 25 of the current year.

In case the auditor does not complete the required updating hours by December 15 of the current year or the Ministry of Finance does not receive the notification of the completion of the updating hours by December 25 of the current year, the auditor will be suspended from auditing practice from January 1 to December 31 of the following year."

2. Replace Appendix No. 04/CNKT with Appendix No. 003 issued together with this Circular.

3. Amend Point c, Clause 1, Article 14 as follows:

"c) List of participants in the knowledge update class (in accordance with the model in Appendix No. 003 issued together with this Circular)."

4. Amend and supplement Clause 4, Article 15 as follows:

"4. Within five working days after each knowledge update class, submit the List of Participants in the Knowledge Update Class in writing or electronically to the Ministry of Finance (in accordance with the model in Appendix No. 003 issued together with this Circular)."

5. Amend and supplement Clause 5, Article 15 as follows:

"5. Submit a report summarizing the results of organizing knowledge update classes for auditors, including the following contents:

a) Report title: Summary Report on the Results of Organizing Knowledge Update Classes for Auditors.

b) Content required in the report: Summarize the results of organizing knowledge update classes for auditors throughout the year, specifically:

- Number of classes organized;

- Number of auditor participants;

- Summary of the knowledge update time for each auditor; Self-assessment of the organization of the classes;

- Recommendations to the Ministry of Finance regarding the organization of knowledge update classes.

c) Reporting entity: Professional associations, training institutions, or auditing firms approved by the Ministry of Finance to organize knowledge updates.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of submitting and receiving reports: The periodic report must be in written form or electronic copy and can be submitted through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submission of the report: No later than August 25 of the reporting year.

g) Frequency of submitting the report: Annual report.

h) Data closing period: From August 16 of the previous year to August 15 of the reporting year. Report outline template:

i) As per Appendix No. 06/CNKT issued together with this Circular.

k) Data reporting forms: As per Appendix No. 06/CNKT issued together with this Circular.

l) Guidance on the reporting process: Annually, professional associations, training institutions, or auditing firms approved by the Ministry of Finance to organize knowledge updates must compile the results of organizing knowledge update classes for auditors according to the template and submit them to the Ministry of Finance within the specified deadline."

Article 5. Amend and supplement some articles of Circular No. 203/2012/TT-BTC dated November 19, 2012 on the procedures for issuing, managing, and using the Certificate of Eligibility to Operate Auditing Services, as follows:

1. Amend and supplement Clause 7 of Article 17 as follows:

"7. Submit the Report on the Situation of Maintaining Conditions for Operating Auditing Services with the following contents:

a) Name of report: Report on the Situation of Maintaining Conditions for Operating Auditing Services.

b) Content required in the report: Declare the maintenance of each condition for operating auditing services during the year by the auditing firm. Specifically:

- Number and date of the Business Registration Certificate (or Enterprise Registration Certificate, Investment Certificate) issued most recently;

- Number and date of the Certificate of Eligibility to Operate Auditing Services issued initially and adjusted/reissued most recently;

- List of practicing auditors with full-time employment contracts at the auditing firm as of the reporting date;

- Registered capital at the reporting date, including in detail:

+ Capital contribution by practicing auditors;

+ Capital contribution by organizational members; Full name and Practicing Auditor Registration Certificate of the representative of organizational members;

+ Shareholders' equity on the Financial Statement of the year closest to the reporting date;

- Purchase of professional liability insurance and establishment of a risk reserve fund;

- Compliance with laws.

c) Entity responsible for submitting the report: Auditing firm.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of submitting and receiving reports: The periodic report must be in written form or electronic copy and can be submitted through one of the following methods:

- Direct submission; Submission through postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submission of the report: No later than October 31 of the reporting year or upon request from the competent authority.

g) Frequency of submitting the report: Annual report or as requested.

h) Period for finalizing the report data: From October 1 of the previous year to September 30 of the reporting year or until the requested time.

i) Outline of the report: In accordance with Appendix IX attached hereto.

k) Form of report data: In accordance with Appendix IX attached hereto.

l) Procedure for submitting the report: Annually, the auditing firm compiles information on the conditions for operating auditing services according to the form and submits it to the Ministry of Finance within the prescribed deadline."

2. Amend and supplement Clause 8 of Article 17 as follows:

"8. Submit the Annual Operation Report with the following contents:

a) Name of report: Annual Operation Report.

b) Content required in the report: Report on basic figures and information about the operation of auditing services by the auditing firm during the year, specifically:

- Staff situation;

- Revenue situation;

- Business results;

- Changes during the year;

- Advantages, difficulties, and recommendations, proposals, or other information that the company needs to provide to the Ministry of Finance (if any).

c) Entity responsible for submitting the report: Auditing firm.

d) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Management and Supervision).

đ) Method of submitting and receiving reports: The periodic report must be in written form or electronic copy and can be submitted through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submission of the report: No later than April 10 of the following year.

g) Frequency of submitting the report: Annual report.

h) Cut-off date for report data: From January 1 to December 31 of the reporting year.

i) Outline of the report: In accordance with Appendix X attached hereto.

k) Form of report data: In accordance with Appendix X attached hereto.

l) Procedure for submitting the report: Annually, the auditing firm compiles information on the operation of auditing services according to the form and submits it to the Ministry of Finance within the prescribed deadline."

Article 6. Amend and supplement some articles of Circular No. 202/2012/TT-BTC dated November 19, 2012 on the procedures for issuing, managing, and using the Certificate of Eligibility to Operate Auditing Services, as follows:

1. Amend and supplement Clause 1 of Article 14 as follows:

"1. Submit the Annual Report on Maintaining Conditions for Practicing Auditing with the following contents:

a) Name of report: Annual Report on Maintaining Conditions for Practicing Auditing.

b) Content required in the report: Declare the maintenance of each registration condition for practicing auditing annually by the practicing auditor, specifically:

- Basic information of the practicing auditor;

- Number and date of issuance of the auditor certificate;

- Number and date of issuance, validity period of the Practicing Auditor Registration Certificate;

- Hours of knowledge update from August 16 of the previous year to August 15 of the reporting year;

- Duration of the full-time employment contract at the auditing firm;

- Whether there has been any change in the full-time employment contract signed with the auditing firm during the year compared to the last time;

- Compliance with laws on independent auditing from August 16 of the previous year to August 15 of the reporting year.

c) Entity responsible for submitting the report: Practicing auditor. Receiving agency: Ministry of Finance (Department of Accounting and Auditing Supervision).

đ) Method of submitting and receiving reports: The periodic report must be in written form or electronic copy and can be submitted through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submission of the report: No later than August 31 of the reporting year.

g) Frequency of submitting the report: Annual report.

h) Period for finalizing the report data: From August 16 of the previous year to August 15 of the reporting year.

i) Outline of the report: In accordance with Appendix No. 10/ĐKHN attached hereto.

k) Form of report data: In accordance with Appendix No. 10/ĐKHN attached hereto.

l) Procedure for submitting the report: Annually, the practicing auditor declares information on maintaining the conditions for practicing auditing according to the form and submits it to the Ministry of Finance through the auditing firm within the prescribed deadline."

2. Amend and supplement Clause 3 of Article 15 as follows:

"3. Submit the Annual Report on the Summary of Maintaining Conditions for Practicing Auditing with the following contents:

a) Name of report: Annual Report on the Summary of Maintaining Conditions for Practicing Auditing.

b) Content required in the report: Summarize information on maintaining the registration conditions for practicing auditing during the year by practicing auditors at the auditing firm, specifically:

- Situation of knowledge updates and duration of full-time employment contracts at the auditing firm by practicing auditors from August 16 of the previous year to August 15 of the reporting year;

- Administrative violations in the field of independent auditing during the period from August 16 of the previous year to August 15 of the reporting year.

c) Entity responsible for submitting the report: Auditing firm.

d) Receiving agency: Ministry of Finance (Department of Accounting and Auditing Supervision);

đ) Method of submitting and receiving reports: The periodic report must be in written form or electronic copy and can be submitted through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

e) Deadline for submission of the report: No later than August 31 of the reporting year.

g) Frequency of submitting the report: Annual report.

h) Period for finalizing the report data: From August 16 of the previous year to August 15 of the reporting year.

i) Outline of the report: In accordance with Appendix No. 11/ĐKHN attached hereto.

k) Form of report data: In accordance with Appendix No. 11/ĐKHN attached hereto.

l) Guidelines for the reporting process: The auditing firm prepares an Annual Report on Maintaining Audit Practice Conditions from the Annual Reports on Maintaining Audit Practice Conditions of practicing auditors at the unit according to the model. The auditing firm submits the Annual Consolidated Report on Maintaining Audit Practice Conditions along with the Annual Reports on Maintaining Audit Practice Conditions of each auditor to the Ministry of Finance within the prescribed deadline.

Article 7. Amend and supplement some articles of Circular No. 157/2014/TT-BTC dated October 23, 2014, on quality control of audit services as follows:

1. Amend and supplement Point c, Clause 1, Article 9 as follows:

"c) Submit the Report on the Results of Self-Inspection of Quality of Audit Services with the following contents:

(1) Name of the report: Report on the Results of Self-Inspection of Quality of Audit Services.

(2) Content required in the report:

- General information about the auditing firm;

- Organization and personnel of the auditing firm as of December 31 of the reporting year;

- Training and updating knowledge for employees and auditors;

- Clients and services provided;

- Service fees;

- Working methods.

(3) Entity responsible for submitting the report: Auditing firm.

(4) Receiving authority: Ministry of Finance (Department of Accounting and Auditing Supervision);

(5) Method of submission and receipt of the report: The periodic report shall be presented in paper form or electronic copy and submitted through one of the following methods:

- Direct submission;

- Sending via postal service;

- Submission via electronic mail system;

- Other methods as prescribed by law.

(6) Deadline for submission of the report: Not later than May 31 of the following year.

(7) Frequency of submission of the report: Annual periodic report.

(8) Period for finalizing data for the report: From January 1 to December 31 of the reporting year.

(9) Outline of the report: According to Appendix No. 02 issued together with this Circular.

(10) Reporting data forms: According to Appendix No. 02 issued together with this Circular.

(11) Guidelines for the reporting process: Annually, the auditing firm compiles information according to the model and submits it to the Ministry of Finance within the prescribed deadline.

2. Amend and supplement Clause 1, Article 24 as follows:

"1. Within thirty days from the date of signing the Report on the Results of Inspection, the inspected auditing firms must submit the Summary of Corrective Measures and Implementation of Recommendations of the Inspection Team to the inspecting authority. In case the inspected auditing firm is a member of a Professional Organization for Auditors, the Summary of Corrective Measures and Implementation of Recommendations of the Inspection Team must also be submitted to the Professional Organization for Auditors.

The Summary of Corrective Measures and Implementation of Recommendations of the Inspection Team serves as reference material when conducting quality control inspections of audit services in the future.

Article 8. Effective Date

1. This Circular takes effect from July 1, 2020.

2. During implementation, if there are difficulties or obstacles, please promptly reflect them to the Ministry of Finance for research and appropriate amendments and supplements./.