Decision No. 47/2005/QD-BTC on "Delegating to Professional Associations the Implementation of Certain Management Tasks for Accounting and Auditing Practices"

Pursuant to …;

Regarding the transfer to professional associations to implement certain management tasks for accounting and auditing practices

The content of work to be transferred includes managing the practice of accounting and auditing for individuals and organizations operating in the field of providing accounting and auditing services, including:

THE MINISTER OF FINANCE

Pursuant to Decree No. 129/2004/ND-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Law on Accounting applicable in business operations;

Pursuant to Decree No. 105/2004/NĐ-CP dated March 30, 2004 of the Government on Independent Auditing;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Accounting and Auditing System Department, the Chairman of the Vietnam Association of Accountants (VAA), the Chairman of the Vietnam Association of Certified Public Accountants (VACPA), the Director of the Organization and Cadre Department, and the Head of the Ministry's Office,

DECISION:

Article 1. Content of Work to be Transferred

Transfer to the professional association of accounting and auditing the management of accounting and auditing practices for individuals and organizations engaged in providing accounting and auditing services, including:

1. Transfer to the Vietnam Association of Accountants (VAA):

a. Organizing professional training for accountants and practicing accountants;

b. Uniformly managing the list of practicing accountants and the list of accounting service enterprises according to the provisions of the law;

c. Implementing inspections to ensure compliance with accounting laws and the quality of services in accounting enterprises and individual practicing accountants;

d. Organizing training and issuing Certificates for Chief Accountants of Enterprises and Chief Accountants of State Accounting Units;

e. Appointing staff from the Association to participate in the National Accounting Council, standard-setting boards for accounting standards, auditing standards, or drafting accounting systems when requested by the Ministry of Finance;

g. Other specific tasks such as appointing representatives of the Association on the Examination Board for Certified Public Accountants at the national level; participating in organizing examinations for Certified Public Accountants such as issuing examination materials according to the Examination Board's model; organizing pre-examination training and review sessions.

2. Transfer to the Vietnam Association of Certified Public Accountants (VACPA):

a. Organizing professional training for auditors and practicing auditors. Ensuring annual knowledge updates for practicing auditors as required by law;

b. Uniformly managing the list of practicing auditors and the list of auditing enterprises according to the provisions of the law;

c. Reviewing conditions and publicly announcing the lists of auditors and auditing enterprises that meet the requirements for practicing according to the provisions of the law;

d. Implementing inspections to ensure compliance with accounting and auditing laws and the quality of services in auditing enterprises. When violations are discovered, report them to the competent state authorities for handling. Annually conduct a summary and evaluation of the quality of services and professional activities of auditors, auditing activities, and report to the Ministry of Finance;

e. Other specific tasks such as appointing representatives of the Association on the Examination Board for Certified Public Auditors at the national level; participating in organizing examinations for Certified Public Auditors such as issuing examination materials according to the Examination Board's model; organizing pre-examination training and review sessions.

Article 2. Conditions for Transfer

1. Professional Associations must supplement their Articles of Operation, improve organizational structures, and ensure the conditions for operating as an independent self-regulatory organization.

2. Staff working for the Associations must have professional qualifications; hold a Certificate of Auditor, a Certificate of Practicing Accountant, or an internationally recognized Certificate of Membership in the Accounting and Auditing Profession, recognized by the Ministry of Finance; and have practical experience in accounting and auditing service activities.

3. The Ministry of Finance will provide partial financial support, material conditions, and working tools according to Decision No. 21/2003/QD-TTg dated January 29, 2003.

4. The Ministry of Finance shall perform the function of inspecting and supervising the implementation of assigned tasks by VAA and VACPA.

Article 3. Transition Plan

The transfer shall be carried out according to the following schedule:

1- For the years 2005/2006: Transitional period:

- VAA shall carry out tasks assigned such as organizing professional training for accountants and practicing accountants; organizing training and issuing certificates for chief accountants; organizing preparatory training before examinations, issuing examination documents based on the model provided by the Ministry of Finance;

- Appointing a representative from VAA or VACPA to the Examination Board;

- VACPA shall cooperate with the Accounting and Auditing Department (Ministry of Finance) to organize professional training and update knowledge for auditors; manage lists of practicing auditors and auditing firms; publicly disclose lists of auditors and auditing firms; participate in compliance checks and service quality reviews.

2- From 2007 onwards, fully transfer all tasks stipulated in Article 1 of this Decision to professional associations.

3- From 2008 onwards, professional associations shall cooperate with the Ministry of Finance to organize auditor examinations and jointly sign on auditor certificates and accounting practice certificates.

Article 4. Rights and Responsibilities of Professional Associations

1- The Vietnam Association of Accountants and Auditors, the Vietnam Association of Certified Public Accountants have the right to implement assigned tasks and other rights as prescribed by law.

2- The Vietnam Association of Accountants and Auditors, the Vietnam Association of Certified Public Accountants have the responsibility:

- To effectively implement assigned tasks pursuant to this Decision and as prescribed by law;

- To submit annual reports on the operation of accounting and auditing services and the implementation of assigned management tasks for accounting and auditing as stipulated in Article 1 of this Decision to the Ministry of Finance.

Article 5. Rights and Responsibilities of Auditors and Accounting and Auditing Firms

1- Auditors and accounting and auditing firms have the right to request support from VAA and VACPA for their professional development; they also have the right to report to the Ministry of Finance if they believe that VAA or VACPA does not adequately support their professional development.

2- Practicing accountants, auditors, and accounting and auditing firms have the responsibility to comply with legal regulations, this Decision, and professional association guidelines on accounting and auditing.

Article 6. Implementation Organization

1- Assign the Director of the Accounting and Auditing Department to coordinate with relevant units to be responsible for implementing the transfer according to the schedule specified in Article 3, provide guidance, conduct inspections, collaborate, and assist professional accounting and auditing associations in receiving and completing assigned tasks.

2- This Decision takes effect fifteen days after its publication in the Official Gazette. The Directors of the Accounting and Auditing Department, the Cadre Organization Department, the Financial Management Department, the Head of the Ministry's Office, the Chairman of the Vietnam Association of Accountants and Auditors, the Chairman of the Vietnam Association of Certified Public Accountants, and the heads of related units under the Ministry of Finance are responsible for enforcing this Decision./.