Thông tư 107/2000/TT-BTC

CIRCULAR

GUIDING THE REGISTRATION OF AUDITING PRACTICE

Pursuant to Enterprises Law No. 13/1999/QH 10 of June 12, 1999 and the Government’s Decree No. 03/2000/ND-CP of February 3, 2000 guiding the implementation of a number of articles of the Enterprises Law;
Pursuant to the Government’s Decree No. 178/CP of October 28, 1994 on the tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government’s Decree No. 07/CP of January 29, 1994 promulgating the Regulation on independent auditing in the national economy and the Finance Ministry’s Circular No. 22 TC/CDKT of March 19, 1994 guiding the implementation of the Regulation on independent auditing in the national economy;
In furtherance of the Government’s Decree No. 30/2000/ND-CP of August 11, 2000 on annulling a number of permits and converting some others into business conditions, the Ministry of Finance hereby stipulates and guides the registration of auditing practice in independent audit organizations operating in Vietnam as follows:

1. General provisions

1.1. Independent audit organizations operating in shall have to register at the Finance Ministry their auditors names on the list of audit practitioners.

1.2. Audit practitioners in independent audit organizations shall have to satisfy all the auditors criteria prescribed in Articles 9, 10, 11 and 12 of the Regulation on independent auditing in the national economy (issued together with the Government’s Decree No. 07/CP of January 29, 1994) and Points 8 and 9, Section II of the Finance Ministry’s Circular No. 22 TC/CDKT of March 19, 1994 guiding the implementation of the Regulation on independent auditing in the national economy.

1.3. Auditors working in independent audit organizations may sign the auditing reports only after their names have already been registered on the list of audit practitioners at the Finance Ministry.

1.4. When performing the auditing task, the auditors shall have to produce their auditor certificates. When signing auditing reports, the auditors shall have to clearly inscribe their full names and serial numbers of their auditor certificates granted by the Finance Ministry.

1.5. In cases where auditors violate law or breach professional disciplines and ethics, their names shall be crossed out from the list of registered audit practitioners.

1.6. Independent audit organizations that use the auditors not named on the list of registered audit practitioners to sign auditing reports shall be sanctioned according to the Ordinance on Handling Administrative Violations (Order No. 41 - L/CTN of July 19, 1995 of the President of the Socialist Republic of Vietnam) and the Government’s Decree No. 49/1999/ND-CP of July 8, 1999 on sanctions against administrative violations in the field of accounting.

1.7. The Finance Ministry shall manage the list of auditors registering for auditing practice in independent audit organizations, grant and withdraw auditor certificates, and handle violations in the registration of auditing practice.

2. Conditions for auditing practice registration

Auditors entitled to register for auditing practice shall be those who fully meet the following criteria:

2.1. For Vietnamese auditors:

a/ Having clear personal records, being honest and uncorrupted, having not yet been criminally charged or disciplined in the accounting or auditing professional activities;

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2.2. For foreign auditors:

for 1 year or more;

< p="">< p="">In cases where they are holding auditor diplomas (or certificates) not granted by the Vietnamese Finance Ministry, such auditors shall have to pass through qualifying examinations on their knowledge about Vietnamese economic laws, financial, accounting and auditing systems, which are organized by the Vietnamese Finance Ministry. The language used in these examinations shall be Vietnamese language or a popular foreign language. Those who pass the exams shall be granted Vietnamese auditor certificates by the Finance Ministry.

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2.3. employees shall not be allowed to register for auditing practice in independent audit organizations.

2.4. Those auditors, whose names have been crossed out from the auditing practice registration list (for their law violations or breaches of professional disciplines and ethics), shall not be allowed to re-register for practice.

3. Procedures for auditing practice registration

3.1. Dossiers for auditing practice registration:

Auditors shall have to make dossiers applying for auditing practice registration to be submitted to independent audit organizations, such a dossier shall comprise:

- An application for registration of auditing practice with certification of the director of the independent audit organization (according to Form No. 01 - KTV);

- 03 photos of 3cm x 4cm size, taken at the time of making the application;

- Auditor certificate granted by the Finance Ministry or auditor diploma (certificate) granted by a foreign accounting or auditing organization (its copy and translation made by a Vietnamese notary public).

3.2. Registration time:

Annually, the head of the independent audit organization shall have to make a list of auditors registered for auditing practice who fully meet the conditions prescribed in Section 2 of this Circular (according to Form No. 02 - KTV), together with 01 set of dossier applying for practice registration made by all the auditors on such list and send it to the Finance Ministry (the Accounting Regime Department) before October 31st. Those who made the registration in the previous year shall not have to submit a new dossier.

3.3. Additional registration:

- In cases where an additional registration is made because new auditors are granted auditor certificates or new auditors are recruited, the independent audit organization shall have to register an additional list of auditors (according to Form No. 02 - KTV) within 30 days after such auditors are officially employed or granted auditor certificates.

- In cases where auditors in the independent audit organization move to other places, quit their jobs or are deprived of the right to practice, the independent audit organization shall have to send a written notice to the Finance Ministry together with the list of reduced auditors within 30 days after such auditors officially leave their jobs.

4. Management of the list of auditors registering for auditing practice

4.1. Within 15 days after receiving the auditing practice registration list as prescribed, the Finance Ministry shall certify the list of auditors who have made the auditing practice registration for the audit organization.

4.2. The list of auditors registering for auditing practice shall be announced publicly.

5. Implementation organization

5.1. This Circular takes effect as from the effective date of the Government’s Decree No. 30/2000/ND-CP of August 11, 2000 and replaces the Finance Ministry’s Circular No. 04/1999/TT-BTC of January 12, 1999 guiding the registration of auditing practice in independent audit organizations

5.2. Auditor certificates granted by the Finance Ministry as from 1994 shall still be effective for the registration of auditing practice according to the provisions of this Circular.

5.3. Auditors and independent audit organizations shall have to strictly and fully abide by the provisions of this Circular.

5.4. The director of the Accounting Regime Department, the Ministry’s Office director and the director of the Department for Organization Personnel and Training under the Finance Ministry shall have to guide, direct and inspect the implementation of this Circular.

Any difficulties and problems arising in the course of implementation should be reported to the Finance Ministry for settlement.