Circular No. 76/2026/TT-BTC guides the purchase of professional liability insurance for auditors practicing their profession or the establishment of a risk reserve fund in independent auditing activities.

CIRCULAR

Guidelines for purchasing professional liability insurance for auditors or establishing a professional risk reserve fund

when practicing or engaging in independent auditing activities

in independent audit activities

Pursuant to the Law on Independent Auditing No. 67/2011/QH12 amended and supplemented by the Law Amending and Supplementing Certain Provisions of the Securities Law, Accounting Law, Independent Auditing Law, State Budget Law, Management and Use of Public Assets Law, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violation Handling Law No. 56/2024/QH15;

Pursuant to Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance, amended and supplemented by Decree No. 166/2025/NĐ-CP;

On the proposal of the Director of the Department of Accounting and Auditing Supervision;

The Minister of Finance issues this Circular guiding the purchase of professional liability insurance for auditors when practicing or establishing a professional risk reserve fund in independent auditing activities.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides guidance on the purchase of professional liability insurance for auditors when practicing or establishing a professional risk reserve fund in independent auditing activities as prescribed in the Law on Independent Auditing.

Article 2. Applicability

This Circular applies to auditors when practicing, auditing firms, and other organizations or individuals related thereto.

Article 3. Explanation of Terms

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

1. Auditing firm: includes auditing firms and branches of foreign auditing firms operating in Vietnam that meet the conditions to operate auditing services as stipulated in the Law on Independent Auditing.

2. Assurance service: refers to the assurance service defined in Circular No. 69/2015/TT-BTC dated May 8, 2015 issued by the Minister of Finance on the Vietnamese Framework for Assurance Engagements Contracts and subsequent amendments, supplements, or replacements (if any).

Chapter II

SPECIFIC PROVISIONS

Article 4. Obligation of auditing firms to purchase professional liability insurance for auditors when practicing or establish a professional risk reserve fund

Auditing firms have the obligation to purchase professional liability insurance for auditors when practicing or establish a professional risk reserve fund.

Article 5. Purchase of professional liability insurance for auditors when practicing

1. Auditing firms must purchase professional liability insurance for auditors when practicing in accordance with the laws on insurance business.

2. The cost of purchasing professional liability insurance for auditors when practicing shall be included in the management expenses of the auditing firm.

Article 6. Establishment of a professional risk reserve fund

1. Auditing firms shall establish a professional risk reserve fund at the end of each fiscal year, with a contribution rate of 1% of the revenue from assurance services for that year.

2. The amount contributed to the professional risk reserve fund shall be included in the management expenses of the auditing firm.

3. The balance of the professional risk reserve fund shall not exceed 10% of the revenue from assurance services for the current fiscal year.

In case the balance of the professional risk reserve fund exceeds 10% of the revenue from assurance services for the current fiscal year, the auditing firm shall reverse the excess amount and reduce the management expenses of the auditing firm accordingly.

4. Auditing firms are responsible for developing and promulgating internal regulations governing the management and use of the professional risk reserve fund.

Article 7. Maintaining Professional Liability Insurance for Practicing Auditors or Establishing a Professional Risk Reserve Fund

Throughout the period of eligibility to provide auditing services, the auditing firm must ensure continuous and uninterrupted maintenance of professional liability insurance for practicing auditors or establishment of a professional risk reserve fund.

Article 8. Compensation for Damages to the Audited Entity and Users of the Audit Results

When compensation for damages caused by the auditing firm's fault to the audited entity and users of the audit results is required, the auditing firm shall be compensated according to the insurance contract committed by the insurance company or foreign non-life insurance branch under Vietnamese laws on insurance business, or use the professional risk reserve fund to compensate for damages.

In cases where the amount to be paid for compensation exceeds the insurance compensation amount or exceeds the balance of the professional risk reserve fund, the excess amount shall be included in the enterprise management costs after deducting the compensation income from the entity or individual causing the damage (if any) as prescribed by law.

Article 9. Tax Obligations

The determination of tax obligations shall be carried out in accordance with the provisions of the tax laws.

Chapter III

IMPLEMENTATION

Article 10. Effective Date

1. This Circular takes effect from September 1, 2026.

2. Repeal Point 5, Section B, Part II of Circular No. 64/2004/TT-BTC dated June 29, 2004, issued by the Minister of Finance guiding the implementation of certain provisions of Decree No. 105/2004/NĐ-CP dated March 30, 2004 of the Government on independent auditing.

Article 11. Implementation Organization

The Director of the Accounting and Auditing Supervision Department, the Heads of relevant units under the Ministry of Finance, auditing firms, and related organizations and individuals are responsible for implementing this Circular./.