Nghị định 105/2013/ND-CP

DECREE

ON SANCTIONING OF ADMINISTRATIVE VIOLATIONS IN DOMAINS OF ACCOUNTING AND INDEPENDENT AUDIT

Pursuant to the Law on organization of Government dated December 25, 2001;

Pursuant to the Law on handling of administrative violations dated June 20, 2012;

Pursuant to the Law on accounting dated June 17, 2003;

Pursuant to the Law on Independent Audit dated March 29, 2011;

At the proposal of Minister of Finance;

The Government promulgates Decree on sanctioning of administrative violations in domains of accounting and independent audit.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Decree specifies acts of administrative violation, statute of limitations for sanctioning, sanctioning forms and levels, remedies; competence for making minutes and competence for sanctioning administrative violations in domains of accounting and independent audit.

Article 2. Subjects of application

1. Domestic and foreign individuals and organizations (hereinafter collectively referred to as individuals and organizations) who violate provisions of law on accounting, independent audit in Vietnam’s territory, but not to the extent of being examined for penal liability will be sanctioned administrative violations as prescribed in this Decree.

2. The persons competent to making minutes, handling of administrative violations and other concerned individuals and organizations.

Article 3. Statute of limitations for handling of administrative violations

1. Statute of limitations for sanctioning administrative violations in domain of accounting will be 2 years;

2. Statute of limitations for sanctioning administrative violations in domain of independent audit will be 1 year;

3. Time to calculate the statute of limitations for sanctioning administrative violations specified in Clause 1, Clause 2 of this Article is defined as follows:

a) For an act of administrative violation already ended, statute of limitations is calculated from time of ending act of violation.

b) For an act of administrative violation currently being performed, statute of limitations is calculated from time of detecting act of violation.

4. In case of sanctioning administrative violations for individuals which are transferred by the agencies conducting the proceedings, statute of limitations will comply with provisions in Clause 1, Clause 2 and Clause 3 of this Article. Duration for the agencies conducting the proceeding to process and consider will be included in statute of limitations for sanctioning administrative violations.

5. In time limit prescribed in Clause 1, Clause 2 and Clause 3 of this Article, if individuals or organizations deliberately shirk or obstruct the sanction, statute of limitations for sanctioning administrative violations will be recounted, starting from the time of termination of acts of shirking or obstructing sanction.

Article 4. Forms of sanctioning administrative violations

1. For each act of administrative violation in domains of accounting, independent audit, organizations and individuals violated must suffer one of following principal sanctioning forms:

a) Impose warning;

b) Fine:

The maximum fine levels in accounting will be VND 30,000,000 for individuals and VND 60,000,000 for organizations. The fine levels defined in Articles from 7 thru 16 Chapter 2 of this Decree will be the fine levels applicable to individuals. For the same act of administrative violation, the fine level for infringing organizations will be twice as the fine level for individual.

The maximum fine levels in dependent audit will be VND 50,000,000 for individuals and VND 100,000,000 for organizations.

c) Deprive of the right to use practice permits or certificates or operation suspension for a definite period in independent audit:

- Suspension of provision of audit service applicable to audit organization for up 12 months from the effective day of sanction decision;

- Suspension of practicing audit applicable to the practice auditors for up 12 months from the effective day of sanction decision;

- Suspension of updating knowledge for auditors for up 06 months from the effective day of sanction decision;

- Suspension of providing through-border audit service in Vietnam of foreign audit enterprises for up 24 months from the effective day of sanction decision;

- Deprive of the right to use certificates of registration for practicing audit for up 24 months from the effective day of sanction decision;

- Deprive of the right to use certificates of eligibility for provision of audit service for up 24 months from the effective day of sanction decision;

2. Apart from principal sanctioning forms prescribed in Clause 1 of this Article, depending on nature and seriousness of violations, organizations and individuals violating administratively in accounting may also be forced to apply the following additional sanctioning forms:

a) Deprive of the right to use the accountancy practice certificates for persons practicing accountancy from 1 month to 3 months; suspension of provision of accounting service for organizations providing accounting service from 1 month to 3 months;

b) Confiscation of accounting vouchers, accounting books, financial statements.

Article 5. Remedial measures

Individuals and organizations violating administratively in domains of accounting and independent audit, apart from being applied to the sanctioning forms, may also be forced to apply the following remedies:

1. Remedial measures in accounting include:

a) Forcible destruction of accounting vouchers which have been made in an overlapping manner;

b) Forcible restoration of the accounting books;

c) Forcible remittance of illicit earnings from the commission of administrative violations.

2. Remedial measures in independent audit include:

a) Forcible correction of wrong or misleading information;

b) Forcible remittance of illicit earnings from the commission of administrative violations.

c) Forcible destruction of dossiers, documents, diplomas, certificates which are fraud, forgery, perjury.

Article 6. Application of provisions of law on sanctioning of administrative violations in relevant domains

If acts of administrative violations related to accounting, independent audit have been prescribed in other documents, the sanction will comply with such documents.

Chapter 2.

VIOLATIONS, SANCTIONING FORMS AND LEVELS IN ACCOUNTING

Article 7. Sanction of acts violating provisions on accounting vouchers

1. Warning for act of signing accounting vouchers inconsistently with provisions on position of signatures of titles for each type of accounting vouchers.

2. A fine of between VND 500,000 and 1,000,000 for any of the following acts:

a) Making accounting vouchers with insufficient principal details as prescribed by the accounting legislation;

b) Erasing, modifying accounting vouchers.

3. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Making accounting vouchers without the sufficient number of duplicate copies according to regulations on each type of accounting document;

b) Signing on accounting vouchers which are not fully filled in the contents falling under the signatories’ responsibility;

c) Signing accounting vouchers when having no competence or authorization to sign.

4. A fine of between VND 20,000,000 and 30,000,000 for any of the following acts:

a) Forging or making false statements in the accounting vouchers;

b) Reaching agreement with or compelling other persons to forge, or make false statements in, accounting vouchers;

c) Making accounting vouchers with duplicate copies containing different contents, for cases of making vouchers with more than one duplicate copy for one arisen economic or financial operation;

d) Failing to make accounting vouchers for arisen economic or financial operations;

dd) Making more than once accounting vouchers for one arisen economic or financial operation;

e) Destroying or deliberately damaging accounting vouchers.

5. Additional sanctions:

a) Confiscation of accounting vouchers for violations specified in points a, b Clause 4 of this Article;

b) Deprive of the right to use the accountancy practice certificates for persons practicing accountancy from 1 month to 3 months; suspension of provision of accounting service for organizations providing accounting service from 1 month to 3 months, in case of violation specified in Clause 4 of this Article.

6. Remedial measures:

Forcible destruction of accounting vouchers which have been made in an overlapping manner for an operation specified in point dd Clause 4 of this Article;

Article 8. Sanction of acts violating provisions on accounting books

1. A warning or a fine of between VND 500,000 and 1,000,000 for one of the following acts:

a) Making accounting books with insufficient contents according to regulations, such as no name of the accounting unit, no book name, no opening date of book; no closing date of book; no signature of the person making book, chief accountant and legal representative of accounting unit; no page number, no overlapping stamps on accounting book pages;

b) Making entries in accounting books with insufficient principal contents according to regulations;

c) Violating regulations on making entries in accounting books, such as making superimposed entries, making entries on every other line; failing to cross out the blank space of a page; failing to sum up figures at the end of a page; failing to transfer the sum in the previous page onto the top of the following page;

d) Failing to bind up separate books for each accounting period and complete legal formalities after printing out books on paper in case of computerized accounting.

2. A fine of between VND 3,000,000 and 5,000,000 for any of the following acts:

a) Opening accounting books not in accordance with general principles applicable to one of accounting book forms according to regulations;

b) Making entries in accounting books without using the method prescribed in the accounting standards and accounting regime;

c) Making entries in or closing accounting books not in time according to regulations;

d) Correcting errors in accounting books without using the prescribed method.

3. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Failing to open accounting books at the beginning of the annual accounting period or from the date of establishment of the accounting unit;

b) Failing to keep accounting vouchers evidencing information and figures recorded in accounting books or figures recorded in accounting books failing to match accounting vouchers;

c) Information, figures recorded in accounting books of the accounting year failing to succeed information and figures recorded in accounting books of the preceding year or failing to make continuous entries in accounting books from the time of opening to the time of closing;

d) Failing to close accounting books in cases where accounting books must be closed according to the accounting legislation;

dd) Failing to print out accounting books on paper after closing computerized books for types of book which must be printed according to regulation, or failing to have full signatures and seal according to regulation after printing out accounting books.

4. A fine of between VND 20,000,000 and 30,000,000 for any of the following acts:

a) Opening accounting books outside the system of official accounting books of the unit;

b) Forging accounting books;

c) Reaching agreement with or compelling other persons to forge accounting books;

d) Deliberately leaving out of accounting books property of, or related to, the unit;

dd) Destroying accounting books ahead of time or deliberately damaging them.

5. Additional sanctions:

a) Confiscation of accounting books for violations specified in points a, b, c Clause 4 of this Article;

b) Deprive of the right to use the accountancy practice certificates for persons practicing accountancy from 01 month to 03 months; suspension of provision of accounting service for organizations providing accounting service from 01 month to 03 months, in case of violation specified in Clause 4 of this Article.

6. Remedial measures:

Forcible restoration of accounting books, for violations prescribed at Point dd Clause 4 of this Article.

Article 9. Sanction of acts violating provisions on bookkeeping accounts

1. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Keeping accounts not according to the prescribed contents of bookkeeping accounts;

b) Modifying accounting contents and methods of bookkeeping accounts promulgated by the Finance Ministry or opening additional bookkeeping accounts within the selected system of grade-I bookkeeping accounts without the approval of the Finance Ministry.

2. A fine of between VND 10,000,000 and 20,000,000 for any of the following acts:

a) Failing to correctly apply the system of bookkeeping accounts prescribed for the unit’s branch or domain of activity;

b) Failing to adhere to the system of accounts already approved by the Finance Ministry.

Article 10. Sanction of acts violating provisions on financial statements, settlement reports and disclosure of financial statements

1. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Failing to make or making financial statements with insufficient contents according to regulations;

b) Making and presenting financial statements without observing the prescribed method; with unclear or contradictory contents according to regulations;

c) Submitting financial statements, settlement reports to competent State bodies between one and three months later than the set deadline;

d) Disclosing financial statements with insufficient contents according to regulations, including: the annual settlements of state budget revenue and expenditure, and other financial revenues and expenditures; situation of assets, payable debts, equity capital, result of business operation, setting up and use of funds, incomes of laborers;

dd) Disclosing financial statements later than one to three months in comparison with the set deadline.

2. A fine of between VND 20,000,000 and 30,000,000 for any of the following acts:

a) Submitting financial statements, settlement reports to competent State bodies more than three months later than the set deadline;

b) Making financial statements at variance with the figures on accounting books and accounting vouchers;

c) Forging financial statements, falsifying figures in financial statements;

d) Reaching agreement with or compelling other persons to forge financial statements, falsify figures in financial statements;

dd) Deliberately reaching agreement with or compelling other persons to provide or certify untrue information, accounting figures;

e) Disclosing financial statements more than three months later than the set deadline;

g) Information and figures in the disclosed financial statements are untrue;

h) Submitting financial statements to competent state agencies without enclosed audit reports for cases where audit is required in accordance with law.

3. Additional sanctions:

a) Deprive of the right to use the accountancy practice certificates for persons practicing accountancy from 01 month to 03 months; suspension of provision of accounting service for organizations providing accounting service from 01 month to 03 months, in cases of violations stated in points b, c, d, dd, g Clause 2 of this Article;

b) Confiscation of financial statements for violations specified at Points b, c, d, dd Clause 2 of this Article.

Article 11. Sanction of acts violating provisions on accounting examination

1. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Failing to observe the accounting examination decisions of competent bodies;

b) Failing to supply or supplying insufficiently to the examination teams accounting records related to the examination contents.

2. A fine of between VND 10,000,000 and 15,000,000 for any of the following acts:

a) Failing to observe or incompletely observing the conclusions of the examination teams;

b) Failing to conduct accounting examinations of subordinate accounting units for three consecutive years.

Article 12. Sanction of acts violating provisions on preservation and archival of accounting records

1. A warning or a fine of between VND 500,000 and 1,000,000 for one of the following acts:

a) Putting accounting records into archives more than 12 months later than the set deadline;

b) Archiving insufficient accounting records according to regulations;

c) Insecurely preserving accounting records, causing damage or loss to accounting records during the archival duration.

2. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Using accounting records in the archival duration not according to regulations;

b) Failing to carry out inventory, classification, restoration of lost or damaged accounting records.

3. A fine of between VND 10,000,000 and 20,000,000 for any of the following acts:

a) Destroying accounting records before the expiry of the prescribed archival duration;

b) Destroying accounting records without setting up a destruction council, without strictly observing the method of destruction and without making destruction minutes according to regulations.

Article 13. Sanction of acts violating provisions on property inventory

1. A warning or a fine of between VND 500,000 and 1,000,000 for one of the following acts:

a) Failing to make reports summing up the inventory results according to regulations;

b) Failing to identify the cause of discrepancies; failing to reflect in accounting books discrepancies between figures obtained from actual inventory and those of accounting books and the results of handling such discrepancies.

2. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed for act of failing to inventory property at the end of the annual accounting period or failing to inventory property in other cases according to regulations.

3. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for acts of forging, or making false statements on, property inventory results.

Article 14. Sanction of acts violating provisions on organization of accounting apparatuses, arrangement of accountants or hire of accountants

1. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Failing to organize an accounting apparatus; failing to arrange accountants or hire accounting service-providing organizations or individuals to perform the accounting work according to regulations;

b) Arranging accountants who are banned by law from working as accountants;

c) Arranging accountants who fail to satisfy the prescribed criteria, conditions;

d) Hiring organizations or individuals that fail to meet the criteria, conditions for practicing accountancy or fail to register business according to regulations to provide accounting services for the units.

2. A fine of between VND 10,000,000 and 20,000,000 for any of the following acts:

a) To arrange persons who are responsible for managing the accounting units concurrently working as accountants, storekeepers, cashiers or purchasing or selling property, except for private enterprises and individual business households;

b) Arranging chief accountants who fail to meet the prescribed criteria or conditions;

c) Hiring chief accountants who fail to meet the prescribed criteria or conditions;

Article 15. Sanction of acts violating provisions on practicing accountancy

1. A fine of between VND 20,000,000 and 30,000,000 for any of the following acts:

a) Practicing accountancy without registering the accounting service business;

b) Representatives at law of the accounting service-providing enterprises have no accountancy practice certificates;

c) Practicing accountancy while failing to ensure operation conditions according to regulations but still providing accounting services;

d) Individuals practicing accountancy without accountancy practice certificates;

dd) Accepting to work as hired accountants while currently are Parents, spouses, children or siblings of the persons responsible for management of the accounting units, including chief accountants or have economic, financial relations or inadequate professional capability; or accepting to work as hired accountants at requests of the accounting units, which are contrary to the accounting occupational ethics and professional operations;

e) Leasing or lending accountancy practice certificates.

2. Additional sanctions:

Deprive of the right to use the accounting practice certificates for persons practicing accounting from 01 month to 03 months; suspension of provision of accounting service for organizations providing accounting service from 01 month to 03 months, in case of violation specified in point e Clause 1 of this Article.

3. Remedial measures:

Forcible remittance of illicit earnings from the commission of administrative violations specified in points a, c, d, dd, e Clause 1 of this Article.

Article 16. Sanction of acts violating provisions on application of accounting standards, accounting regime and of other regulations

1. A fine of between VND 5,000,000 and 10,000,000 for any of the following acts:

a) Failing to register or notify the accounting regime applied in the unit within the prescribed time limit, for cases subject to registration or notification to competent State bodies;

b) Wrongly applying regulations on script, numerals; monetary unit or accounting period.

2. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for acts of letting other subjects use the bank deposit accounts or State treasury deposit accounts of the units for receipt and transfer of money for monetary activities in violation of the regulations on financial, budget and capital use management as well as provisions of law on prevention of money laundering.

Article 17. Sanction of acts violating in organization of the chief-accountant retraining courses and grant of the retraining certificates of chief accountant

1. A warning or a fine of between VND 500,000 and 1,000,000 shall be imposed for the training establishments conducting one of the following violations:

a) Failing to send to the Ministry of Finance a full dossier of documents before opening courses;

b) Organizing a chief-accountant retraining course of more than 100 trainees;

c) Organizing a chief-accountant retraining course with duration of more than 6 months;

d) Failing to notify, report to the Ministry of Finance contents related to courses according to regulations.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for the training establishments conducting one of the following violations:

a) Failing to ensure content, program and duration of course for trainees according to regulations;

b) Violations in using documents of retraining chief accountant;

c) Storing records involving courses insufficiently and wrongly with time according to regulations.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for the training establishments conducting one of the following violations:

a) Opening the chief-accountant retraining courses while establishments are not eligible;

b) Opening the chief-accountant retraining courses for foreigners without acceptance of the Ministry of Finance;

c) Granting the chief-accountant certificates for trainees who fail to meet criteria or conditions;

d) Granting the retraining certificates of chief-accountant for trainees who have inconsistent examination results;

dd) The training establishments fail to manage the blank prints and fail to grant the retraining certificates of chief accountant rightly with regulations of the Ministry of Finance.

4. Forcible remittance of illicit earnings from the commission of administrative violations specified in points a, b, c, d Clause 3 of this Article.

Chapter 3.

VIOLATIONS, SANCTIONING FORMS AND LEVELS OF ADMINISTRATIVE VIOLATIONS IN INDEPENDENT AUDIT

SECTION 1. ACTS VIOLATING PROVISIONS ON GRANT, MANAGEMENT AND USE OF CERTIFICATES OF ELIGIBILITY FOR PROVIDING AUDIT SERVICE

Article 18. Sanction of act violating provision on dossier requesting for grant of certificates of eligibility for providing audit service

1. A warning shall be imposed for individuals, legal representatives of audit organizations, and audit organizations that implement any of following violations so as to be eligible for grant of certificates of eligibility for providing audit service:

a) To make untrue statement in dossier requesting for grant of certificates of eligibility for providing audit service;

b) To forge, make false statement in dossier requesting for grant of certificates of eligibility for providing audit service;

c) To certify on documents which are untrue, documents forged or falsified in dossier requesting for grant of certificates of eligibility for providing audit service;

2. Remedial measures: Forcible destruction of all documents already declared which are untrue, forged, falsified.

Article 19. Sanction of acts violating provisions on management and use of certificates of eligibility for providing audit service

1. A warning shall be imposed for audit organization which fails to submit certificate of eligibility for providing audit service to the Ministry of Finance when there is a decision on withdrawal, unless otherwise prescribed by law.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations which fail to do procedures for adjusting certificates of eligibility for providing audit service when arising changes having to be adjusted as prescribed by law.

3. Deprive of right to use of certificates of eligibility for providing audit service for a period of between 12 months and 24 months, for audit organizations conducting any of following violations:

a) To forge, erase, modify certificates of eligibility for providing audit service;

b) To lease, lend certificates of eligibility for providing audit service;

4. Remedial measures:

a) Forcible destruction of certificates of eligibility for providing audit service which have been forged, erased, modified;

b) Forcible remittance of illicit earnings from the commission of administrative violations specified in point b Clause 3 of this Article.

SECTION 2. ACTS VIOLATING PROVISIONS ON OPERATION OF AUDIT ENTERPRISES, FOREIGN AUDIT ENTERPRISES’ BRANCHES IN VIETNAM

Article 20. Sanction of acts violating provisions on providing audit service of audit enterprises

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for organizations which are not granted certificates of eligibility for providing audit service but fail to do procedures for deleting trade of audit service in the certificate of enterprise registration, or certificate of business registration, or certificate of investment within 6 months from the nearest day of changing business registration.

2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for organizations which are not eligible for providing audit service in accordance with regulation but use phrase of “audit” in their name.

3. A fine of between VND 40,000,000 and 50,000,000 shall be imposed for organizations providing audit service while they have not yet been granted certificates of eligibility for providing audit service.

4. A fine of between VND 40,000,000 and 50,000,000 shall be imposed for audit organizations which still continue providing services as prescribed in Clause 1 Article 40 of the Law on Independent Audit after they have been revoked certificates of eligibility for providing audit service.

5. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 3, Clause 4 of this Article.

Article 21. Sanction of acts violating provisions on suspension of providing audit service

1. Deprive of right to use of certificates of eligibility for providing audit service for a period of between 12 months and 24 months shall be imposed for audit organizations which still continue providing services as prescribed in Clause 1 Article 40 of the Law on Independent Audit after they have been suspended provision of audit service.

2. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

SECTION 3. ACTS VIOLATING PROVISIONS ON MANAGEMENT AND USE OF CERTIFICATES OF AUDITORS, UPDATING OF KNOWLEDGE FOR AUDITOR

Article 22. Sanction of acts violating provisions on dossier of participating in exam and participation in auditor examination

1. A warning or fine of between VND 500,000 and 1,000,000 shall be imposed for individuals forging, making false statement about diplomas, certificates and other documents in their dossiers so as to be eligible for participating in exam to obtain certificates of auditor.

2. A fine of between VND 3.000,000 and 5,000,000 shall be imposed for organizations certified inconsistently with reality about documents in dossier so as to be eligible for participating in exam to obtain certificates of auditor.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for individuals conducting one of the following violations:

a) To let other person taking in exam under their name to obtain certificates of auditor;

b) To taking in exam under name of other person in exam to obtain certificates of auditor;

4. Remedial measures:

a) Forcible destruction of all documents, diplomas, or certificates forged, with false statements in dossier of taking in exam to obtain certificate of auditor for violation specified in clause 1 of this Article;

b) Forcible remittance of illicit earnings from the commission of administrative violations specified in point b Clause 3 of this Article.

Article 23. Sanction of acts violating provisions on management and use of certificates of auditors

1. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for auditors conducting one of the following violations:

a) To forge, erase, modify certificates of auditor;

b) Let organizations, or individuals other than units where they are working to hire, borrow or use their certificates of auditor so as to perform the professional operations of accounting and independent audit.

2. A fine of between VND 40,000,000 and 50,000,000 shall be imposed for organizations hiring, borrowing or using certificates of auditor of persons not working at their units so as to perform the professional operations of accounting and independent audit.

3. Remedial measures:

a) Forcible destruction of all forged, erased, modified documents for acts of violation specified in point a Clause 1 of this Article;

b) Forcible remittance of illicit earnings from the commission of administrative violations specified in point b Clause 1 of this Article.

Article 24. Sanction of acts violating provisions on updating of knowledge for auditor

1. A warning shall be imposed for organizations which have been approved by the Ministry of Finance for organizing courses of updating knowledge for auditor, audit enterprises which have been approved by the Ministry of Finance for self- organizing courses of updating knowledge for auditor serving auditors of their enterprises (referred to as organizations) conducting one of following violations:

a) Reporting improperly the prescribed deadline about results of organizing courses of updating knowledge for auditor;

b) Failing to monitor, call the roll of auditors who participating in courses of updating;

c) Failing to collect assessment opinions of trainees on the slips for assessing quality of courses of updating knowledge for auditor;

d) Failing to issue certificates for auditors who have participated in courses of updating knowledge.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for units, organizations updating knowledge for auditor without approval of the Ministry of Finance.

3. Suspension of organization to update knowledge for auditor for a period of between 03 months and 06 months, from the effective day of decision on sanction for organizations conducting any of following violations:

a) Organizing the updating knowledge for auditor improperly with content, program already registered with the Ministry of Finance;

b) Arranging lecturers in charge of class of updating knowledge for auditor who fail to meet conditions in accordance with regulation;

c) Failing to report results of organizing courses of updating knowledge for auditor in accordance with regulation;

d) Reporting inaccurate quantity of auditors who have participated in courses of updating knowledge;

dd) Reporting inaccurate number of hours for updating knowledge of auditors;

e) Issuing certificates of participation in courses of updating knowledge for auditors who practically fail to participate in courses of updating knowledge;

g) Failing to store fully dossiers of organizing courses of updating knowledge for auditor in accordance with regulation.

4. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2 of this Article.

SECTION 4. ACTS VIOLATING PROVISIONS ON REGISTRATION FOR AUDIT PRACTICE AND CERTIFICATES OF AUDIT PRACTICE REGISTRATION

Article 25. Sanction of acts violating provisions on dossier of registration for audit practice of auditors

1. A warning shall be imposed for individuals conducting one of the following violations:

a) Making untrue statements in dossier so as to be eligible for grant of certificate of audit practice registration;

b) Forging, making false statements about diplomas, certificates in dossier so as to be eligible for grant of certificate of audit practice registration;

c) Certifying dishonestly documents in dossier so as to be eligible for grant of certificate of audit practice registration.

2. A warning shall be imposed for organizations conducting act of certifying dishonestly information, documents in dossier so as to be eligible for grant of certificate of audit practice registration.

3. Remedial measures: Forcible destruction of all documents already declared and certified dishonestly, forged, falsified.

Article 26. Sanction of acts violating provisions on management and use of certificates of audit practice registration

1. A warning shall be imposed for organizations, individuals who fail to return certificates of audit practice registration to the Ministry of Finance in accordance with regulation.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for individuals using certificates of audit practice registration which had been invalidated so as to perform the professional operations of accounting and independent audit.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for auditors who let organizations or individuals other than their units where they are working, renting, borrowing or using their certificates of audit practice registration so as to perform the professional operations of accounting and independent audit.

4. A fine of between VND 40,000,000 and 50,000,000 shall be imposed for organizations conducting one of the following violations:

a) Forging, erasing, modifying certificates of audit practice registration;

b) Using certificates of audit practice registration which had been invalidated so as to perform the professional operations of accounting and independent audit.

5. Deprive of right to use of certificates of eligibility for providing audit service for a period of between 12 months and 24 months, for audit organizations which hired, borrowed, or used certificates of audit practice registration of auditors who are not working in their units to perform the professional operations of accounting and independent audit.

6. Remedial measures:

a) Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2, Clause 3, Clause 4 of this Article;

b) Forcible destruction of forged certificates of audit practice registration, for organizations conducting violation specified in point a Clause 4 of this Article.

SECTION 5. ACTS VIOLATING PROVISIONS ON AUDIT OPERATION

Article 27. Sanction of acts violating provisions on buying occupational liability insurance for the professional-practicing auditors or setting up of provision fund for occupational risks

1. A warning or fine of between VND 500,000 and 1,000,000 shall be imposed for audit organizations which have bought occupational liability insurance for the professional-practicing auditors or set up of provision fund for occupational risks inconsistently with regulations of the Ministry of Finance.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for audit organizations which fail to buy occupational liability insurance for the professional-practicing auditors or set up of provision fund for occupational risks.

Article 28. Sanction of acts violating provisions on acceptance for providing audit service

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations agreed provision of audit service for clients when clients have requests in contrary to occupational ethics, specialized or professional requirements, or in contrary to law.

2. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

Article 29. Sanction of acts violating provisions on audit contract

1. A warning shall be imposed for audit organizations signing audit contracts with clients, units subject to audit with insufficient contents in accordance with regulation when providing audit service for clients units subject to audit.

2. A fine of between VND 5,000,000 and VND 10,000,000 for audit organizations and clients failing to conclude audit contract before auditing.

3. A fine of between VND 10,000,000 and VND 20,000,000 for audit organizations failing to conclude audit contract with clients before providing audit service.

Article 30. Sanction of acts violating provisions on confidentiality

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for individuals disclosing information related to audit dossier, clients and units subject to audit, unless clients and units subject to audit agreed or otherwise provided by law.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for audit organizations which fail to formulate and operate the system of internal control with the aim to ensure implementation of obligation on confidentiality.

3. Suspension of audit practice for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the professional-practicing auditors who use information related to audit dossier, clients, units subject to audit so as to infringe benefits of state, public interests, rights and lawful benefits of agencies, organizations, individuals.

4. Suspension of providing audit service for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the audit organizations which use information related to audit dossier, clients, units subject to audit so as to infringe benefits of state, public interests, rights and lawful benefits of agencies, organizations, individuals.

5. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

Article 31. Sanction of acts violating provisions on audit report

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for the professional-practicing auditors who conduct one of the following violations:

a) Signing on audit reports improperly with competence according to regulations;

b) Signing audit reports before day of signing the audited financial statements.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for individuals who sign on audit reports when they are not the professional-practicing auditors.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Arranging the professional-practicing auditors for signing on audit reports improperly with competence according to regulations;

b) Issuing audit reports of which day of signing is prior day of signing the financial statements;

c) Making audit reports which are lack signatures of the professional-practicing auditors according to regulations;

d) Failing to make explanations, or make explanations insufficiently, untimely about the excluded contents at requests of competent agencies, representatives of owners of units subject to audit.

4. Suspension of audit practice for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Signing on audit reports for more than three consecutive years for an audited unit;

b) Signing the audit reports after certificates of audit practice registration are invalid or ineffective.

5. Suspension of business in audit service for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the audit organizations which conduct any of following violations:

a) Arranging the person to sign on audit reports who is not a practicing auditor;

b) Arranging an practicing auditor to sign audit reports for more than three consecutive years for an audited unit;

c) Arranging a practicing auditor to sign audit reports after certificate of audit practice registration is invalid or ineffective.

SECTION 6. ACTS VIOLATING PROVISIONS ON INDEPENDENCE

Article 32. Sanction of acts violating provisions on independence of members participating in an audit

1. A warning shall be imposed for members participating in an audit and conducting one of the following violations:

a) Providing untrue information, introducing wrongly about qualification, experiences, and capability of service provision of the professional-practicing auditors and audit enterprises, foreign audit enterprises’ branches in Vietnam;

b) Vying the clients under forms of obstruction, enticement, bribe, collusion with clients and other unfair competitive acts.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for members participating in an audit and conducting one of the following violations:

a) Buying, accepting donations of, holding shares or contributed capitals of the audited unit regardless of quantity;

b) Buying, selling bonds or other assets of the audited unit causing effect to independence according to regulations on standards of occupational ethics in accounting and audit;

c) Accepting or requesting any of amount or benefit from the audited unit excluded service charges and costs agreed in the concluded contract;

d) Harassing or deceiving clients, units audited;

dd) Interfering the business operation of clients, units audited in the audit course.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for the professional-practicing auditors who conduct one of the following violations:

a) Auditing for clients while failing to ensure independence, insufficient professional capability, not eligible according to regulations of law;

b) Auditing for clients when clients have requests in contrary to occupational ethics, specialized or professional requirements, or in contrary to law.

4. Suspension of audit practice for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Colluding, binding with the audited unit to falsify accounting documents, financial statements, audit dossier and reporting falsely audit results;

b) Forging or making false statements in audit dossiers;

5. Deprive of right to use certificate of audit practice registration for a period of between 12 months and 24 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Practicing audit under a personal capacity;

b) Working for more than two audit enterprises, foreign audit enterprises’ branches in Vietnam in the same time;

c) Contributing capital in more than two audit enterprises.

6. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2, Clause 3, Clause 4 of this Article;

Article 33. Sanction of acts violating provisions on independence of audit organization

1. A warning shall be imposed for audit organizations conducting one of the following violations:

a) Providing untrue information, introducing wrongly about qualification, experiences, and capability of service provision of the professional-practicing auditors, audit organization, foreign audit enterprises’ branches in Vietnam;

b) Vying the clients under forms of obstruction, enticement, bribe, collusion with clients and other unfair competitive acts.

2. A fine of between VND 20,000,000 and 40,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Buying, accepting donations of, holding shares or contributed capitals of the audited unit regardless of quantity;

b) Buying, selling bonds or other assets of the audited unit causing effect to independence according to regulations on standards of occupational ethics in accounting and audit;

c) Accepting or requesting any of amount or benefit from the audited unit excluded service charges and costs agreed in the concluded contract;

d) Harassing or deceiving clients, units audited;

dd) Interfering the business operation of clients, units audited in the audit course.

e) To perform collection of debts on behalf of the audited units.

3. Suspension of business in audit service for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the audit organizations which conduct any of following violations:

a) Colluding, binding with the audited unit to falsify accounting documents, financial statements, audit dossier and reporting falsely audit results;

b) Forging or making false statements in audit dossiers;

c) Conducting audit when fall in one of cases banned providing audit service according to law.

4. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2, Clause 3 of this Article.

SECTION 7. ACTS VIOLATING PROVISIONS ON THE AUDITED UNITS

Article 34. Sanction of acts violating provisions on selecting audit organization, the professional-practicing auditors for audit implementation

1. A fine of between VND 20,000,000 and VND 30,000,000 for the audited units which hire audit organizations falling in cases of audit organizations banned providing audit service according to law.

2. A fine of between VND 30,000,000 and VND 40,000,000 for the audited units which hire audit organizations not eligible for providing audit service according to law.

3. A fine of between VND 40,000,000 and VND 50,000,000 for the audited units which fail to implement compulsory audit for financial statements, settlement reports of finished projects, the consolidated financial statements, the sum financial statements and other audit contents according to law on independent audit and other relevant laws.

Article 35. Sanction of acts violating provisions on conclusion of contract for auditing annual financial statement

1. A warning shall be imposed for enterprises, organizations being compulsory subjects to have to audit annual financial statements contracting for auditing the financial statements with insufficient content according to regulations.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for enterprises, organizations conducting one of the following violations:

a) Enterprises, organizations being compulsory subjects to have to audit annual financial statements contracting for auditing the financial statements later than the prescribed deadline;

b) Enterprises, organizations failing to conclude the audit contracts before auditing.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for enterprises, organizations being compulsory subjects to have to audit annual financial statements failing to conclude contracts for auditing the financial statements according to regulations.

Article 36. Sanction of acts violating provisions related to the audit

1. A warning shall be imposed for individuals, organizations refusing or failing to provide sufficiently, exactly, honestly, timely, objectively the necessary information, documents at the request of the professional-practicing auditors or audit organizations involving the audit.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for the audited units which fail to make explanations, or make explanations insufficiently and untimely about the excluded contents in audit reports at requests of competent agencies.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for organizations conducting one of the following violations:

a) Bribing, colluding with members participating in the audit, and audit organizations to falsify accounting documents, financial statements, audit dossier and audit reports;

b) Threatening, retaliating, coercing members participating in the audit with the aim to falsify the audit result.

c) Hiding violations on finance, accounting;

d) Interfering work and having acts to limit the scope of audit.

4. Remedial measures: Forcible correction of untrue information, information causing mistake, for violations specified at Points a and b, Clause 3 of this Article;

Article 37. Sanction of acts violating provisions on auditing the settlement report of finished projects

A fine of between VND 30,000,000 and 40,000,000 shall be imposed for enterprises, organizations implementing the national important projects, group-A projects funded by state capital, except for projects under state secret according to law, not required to perform audit for settlement reports of the finished projects.

SECTION 8. ACTS VIOLATING PROVISIONS ON AUDIT DOSSIERS

Article 38. Sanction of acts violating provisions on making audit dossiers

1. Suspension of audit practice for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the professional-practicing auditors who fail to make the audit dossier for an audit.

2. Suspension of business in audit service for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the audit organizations failing to make the audit dossier for an audit.

Article 39. Sanction of acts violating provisions on preservation and archival of audit dossiers

A fine of between VND 5,000,000 and 10,000,000 shall be imposed for audit organizations conducting one of the following violations:

1. Preserving, storing the audit dossiers insufficiently, unsafely, and causing damage, loss to the audit dossiers in the course of using and in time limit of archival.

2. Putting the audit dossiers into archival later than 12 months from the day of issuing the audit report of an audit.

3. Failing to store the audit dossier made of paper or electronic data.

4. Failing to design, implement the policies and procedures to maintain the confidentiality, safety, entire, ability of accessing and restoring of audit dossiers according to regulations on audit standards.

5. Failing to design, implement the policies and procedures on archival of audit dossiers in the minimum duration of 10 years from the day of issuing audit report of an audit according to regulations on audit standards.

Article 40. Sanction of acts violating provisions on destruction of audit dossiers

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Deciding on destruction of audit dossiers improperly with competence;

b) Destroying audit dossiers without setting up a destruction council, without strictly observing the method of destruction and without making destruction minutes according to regulations.

2. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for the audit organizations implementing destruction of audit dossiers which are in time limit of archival according to regulation or deliberately damaging to the audit dossiers.

SECTION 9. ACTS VIOLATING PROVISIONS ON AUDITING FINANCIAL STATEMENTS OF UNITS WITH PUBLIC BENIFITS

Article 41. Sanction of acts violating provisions on providing audit or control services for units with public interests

1. A fine of between VND 40,000,000 and VND 50,000,000 shall be imposed for units with public interests which select audit organizations providing audit service or control service while those audit organizations have not yet been approved by the Ministry of Finance or been suspended, cancelled the accepted status.

2. Suspension of audit practice for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the professional-practicing auditors who audit, sign on audit reports or result reports on control work for units with public interests when have not yet accepted by the Ministry of Finance or when have been suspended or cancelled the accepted status.

3. Suspension of business in audit service for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the audit organizations which provide audit service or control service for units with public interests when have not yet accepted by the Ministry of Finance or when have been suspended or cancelled the accepted status.

4. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1, Clause 2, Clause 3 of this Article.

Article 42. Sanction of acts violating provisions on disclosure of transparency reports

1. A warning shall be imposed for audit organizations conducting one of the following violations:

a) Failing to disclosure and update full information in transparency report on their websites according to regulations;

b) The transparency report has no signature of legal representative of audit organization or authorized person when announcing;

c) Disclosing information in the transparency report later than 90 days in comparison with deadline from the ending day of financial year.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Failing to make website according to regulations;

b) Disclosing false information in transparency report.

3. Remedial measures: Forcible correction of false information announced.

Article 43. Sanction of acts violating provisions on dossier of registration for participation in audit for units with public interests

1. A fine of between VND 5,000,000 and VND 10,000,000 for individuals and audit organizations conducting one of the following violations in order to accept audit for units with public interests:

a) To make untrue statements in dossier requesting for acceptance of audit for units with public interests;

b) To forge, make false statements in dossier requesting for acceptance of audit for units with public interests;

c) To certify on untrue documents, forged documents, documents of false statements in dossier requesting for acceptance of audit for units with public interests.

2. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

Article 44. Sanction of acts violating provisions related to the responsibilities of units with public interests

A fine of between VND 10,000,000 and 20,000,000 shall be imposed for units with public interests conducting one of the following violations:

1. Failing to formulate and operate the system of internal control.

2. Failing to organize the internal audit as prescribed by law;

Article 45. Sanctions of acts violating provisions on independence

1. A fine of VND 5,000,000 and 10,000,000 shall be imposed for individuals who have performed audit for units with public interest, at present time, hold positions of management, administration, member of control board, chief accountant of those units with public interests, and duration from the day of ending audit to the day of holding such positions is less than twelve months.

2. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed for units with public interests accepting the professional-practicing auditors who have performed audit of financial statements in 5 consecutive financial years.

3. Suspension of audit practice for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the professional-practicing auditors who have made audit for units with public interests for 5 consecutive financial years.

4. Suspension of business in audit service for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the audit organizations arranging the professional-practicing auditors who have performed audit of financial statements for one unit with public interests for 5 consecutive financial years.

SECTION 10. ACTS VIOLATING PROVISIONS ON SUPPLY AND USE OF THROUGH-BORDER AUDIT SERVICE

Article 46. Sanction of acts violating provision on conditions for supply of through-border audit service

Suspension of providing through-border audit service in Vietnam for 24 months from the effective day of sanction decision, for foreign audit enterprises conducting one of the following violations:

1. Supplying through-border audit service in Vietnam when have not yet registered with the Ministry of Finance of Vietnam in order to be granted certificate of eligibility for business in through-border audit service in Vietnam.

2. Supplying the through-border audit service when failing to maintain fully one of conditions according to regulations.

3. Forging, erasing, or modifying dossier requesting for registration of supplying the through-border audit service.

Article 47. Sanction of acts violating provisions applicable to enterprises, organizations involving use of through-border audit service

A fine of between VND 20,000,000 and 30,000,000 shall be imposed for enterprises, organizations paying and transferring money involving supply of through-border audit service not in form of money transfer through allowed credit institutions as prescribed by law on foreign exchange of Vietnam.

Article 48. Sanction of acts violating provision on form of supplying service through borders

Suspension of supply of through-border audit service in Vietnam for a period of between 12 months and 24 months, from the effective day of sanction decision, for foreign audit enterprises, suspension of business in audit service for a period of between 06 months and 12 months, form the effective day of sanction decide for audit enterprises in Vietnam conducting one of the following violations:

1. Failing to enter into partnership with audit enterprises in Vietnam which are eligible to supply the audit service when supplying the through-border audit service.

2. Entering into partnership with audit enterprises in Vietnam which are not eligible to supply the audit service when supplying the through-border audit service.

3. Entering into partnership with foreign audit enterprises in order to supply the through-border service when do not ensure fully conditions for trading in audit service as prescribed.

4. Failing to enter into an audit contract as prescribed by Vietnamese law when supplying the through-border audit service.

5. The audit contracts involving supply of through-border audit service have no full signatures of legal representatives of foreign audit enterprises, audit enterprises in Vietnam and units subject to audit.

6. Failing to make a partnership contract involving supply of through-border audit service according to regulations.

7. The partnership contracts fail to clearly divide duties of foreign audit enterprises and Vietnamese enterprises in supply of the through-border audit service.

8. Failing to assign the professional-practicing auditors in charge of audit work parts under duties of each party according to regulations.

9. The audit reports have no signatures of the legal representatives of foreign audit enterprises, Vietnamese audit enterprises and the professional-practicing auditors in charge of the audit work part under duty of each enterprise in co-auditing contracts.

10. The audit contracts, partnership contracts, audit dossiers and audit reports are not made concurrently in both of languages of Vietnamese and English.

Article 49. Sanction of acts violating provision on obligations of enterprises supplying the through-border audit service

1. A fine of between VND 40,000,000 and 50,000,000 shall be imposed for foreign audit enterprises conducting one of the following violations:

a) Failing to submit financial statements of the preceding year according to regulations or failing to submit properly with deadline;

b) Reporting untimely, insufficiently according to the set form on situation of performing contracts of supplying the through-border audit service arisen in Vietnam;

c) Failing to perform other obligations of audit enterprises according to provisions in the Law on Independent Audit of Vietnam.

2. Suspension of supply of through-border audit service in Vietnam for a period of between 12 months and 24 months, from the effective day of sanction decision, for foreign audit enterprises conducting one of the following violations:

a) Violating the prohibited acts, cases banned performing audit as prescribed in the Law on Independent Audit of Vietnam;

b) Failing to abide by the Vietnamese audit standards when supply the through-border audit service in Vietnam;

c) Failing to report or reporting untruthfully on situation of performing contracts of supplying the through-border audit services arisen in Vietnam;

d) Failing to assign the responsible persons representing enterprises to report, make explanations for functional agencies of Vietnam related to audit contracts, audit dossiers, audit reports and other matters involving supply of the through-border services in Vietnam.

Article 50. Sanction of acts violating provision on partnership in supply of the through-border audit service

Suspension of supply of audit service for a period of between 06 months and 12 months, from the effective day of sanction decision, for Vietnamese audit enterprises which enter into partnership with the foreign audit enterprises to conduct one of the following violations:

1. Failing to store all audit dossiers of the audit already been performed under partnership form.

2. Failing to supply or supply insufficiently, untimely the audit dossiers of the audit already performed under partnership form for functional agencies as being requested.

3. Failing to make explanations or making explanations insufficiently and untimely to functional agencies about the audit reports, audit dossiers and matters arising from the audit under form of partnership with foreign audit enterprises.

4. Failing to perform report on situation of performing partnership with foreign audit enterprises in supply of the through-border audit service according to regulation.

5. Failing to coordinate with the competent agencies in control of audit service quality for partnership contracts with foreign audit enterprises.

SECTION 11. ACTS VIOLATING PROVISIONS ON NOTICE AND REPORT

Article 51. Sanction of acts violating provisions on obligations in notice and report of audit organizations

1. A warning shall be imposed for audit enterprises failing to notify the Ministry of Finance in writing and enclosed copies of documents, about establishment or operational termination of facilities of overseas audit enterprises.

2. A fine of between VND 2,000,000 and 3,000,000 shall be imposed for audit enterprises, branches of audit enterprises notifying the Ministry of Finance later than the prescribed time limit when having changes about:

a) List of the professional-practicing auditors;

b) Name, address of head office of enterprises;

c) Name, address of head office of branches trading in audit service;

d) Temporarily stopping the audit service business operation;

dd) The operational termination of branches trading in audit service;

e) Annual reports on operational situation and irregular reports at the request of the Ministry of Finance.

3. A fine of between VND 3,000,000 and 5,000,000 shall be imposed for audit enterprises, branches of audit enterprises failing to notify the Ministry of Finance when having changes about:

a) List of the professional-practicing auditors;

b) Name, address of head office of enterprises;

c) Name, address of head office of branches trading in audit service;

d) Temporarily stopping the audit service business operation;

dd) The operational termination of branches trading in audit service;

e) Annual reports on operational situation and irregular reports at the request of the Ministry of Finance.

4. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for audit enterprises, branches of audit enterprises notifying the Ministry of Finance later than the prescribed time limit when:

a) Failing to ensure one of conditions specified in Article 21 and Article 31 of the Law on Independent Audit, and Articles 5, 6, 7, 8 of Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, detailing and guiding implementation of a number of articles of the Law on Independent Audit;

b) Changing Directors, or General Directors, legal representatives, the contribution capital rate of members;

c) Performing the division, separation, merger, consolidation, transform, or dissolution.

5. Suspension of trading in audit service for a period of 12 months, from the effective day of sanction decision, for audit enterprises, branches of audit enterprises which fail to notify the Ministry of Finance when: a) Failing to ensure one of conditions specified in Article 21 and Article 31 of the Law on Independent Audit, and Articles 5, 6, 7, 8 of Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, detailing and guiding implementation of a number of articles of the Law on Independent Audit;

b) Changing Directors, or General Directors, legal representatives, the contribution capital rate of members;

c) Performing the division, separation, merger, consolidation, transform, or dissolution.

Article 52. Sanction of acts violating provisions on obligations in notice and report of the professional-practicing auditors

1. A warning shall be imposed for the professional-practicing auditors performing notices or periodical or irregular reports to the Ministry of Finance in time later than the prescribed time limit when:

a) No longer working in audit enterprises, branches of foreign audit enterprises in Vietnam as stated in certificate of registration for audit practice;

b) The full-time labor contract at audit enterprises, branches of foreign audit enterprises in Vietnam is expired or terminated or has changes which result not to ensure for it still be a full-time labor contract according to regulations;

c) Labor permits in Vietnam of the foreign professional-practicing auditors are expired or invalid;

d) Participating with personal status to do as Chief accountant (or person in charge of accounting), the internal accounting, audit officers, or other positions at units, organizations other than audit organizations.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for the professional-practicing auditors failing to notify or notify later than over 15 days in comparison with regulation when:

a) No longer working in audit enterprises, branches of foreign audit enterprises in Vietnam as stated in certificate of registration for audit practice;

b) The full-time labor contract at audit enterprises, branches of foreign audit enterprises in Vietnam is expired or terminated or has changes which result not to ensure for it still be a full-time labor contract according to regulations;

c) Labor permits in Vietnam of the foreign professional-practicing auditors are expired or invalid;

d) Participating to do as Chief accountant (or person in charge of accounting), the internal accounting, audit officers, or other positions at units, organizations other than audit organizations.

SECTION 12. ACTS VIOLATING PROVISIONS ON QUALITY CONTROL OF AUDIT SERVICE

Article 53. Sanction of acts violating provisions on quality control of audit service of audit organizations

A fine of between VND 20,000,000 and 30,000,000 shall be imposed for audit organizations conducting one of the following violations:

1. Failing to formulate the system of service quality control for audit service, control service of financial statements, financial information and other guarantee services.

2. Failing to formulate policies and procedures for quality control over each audit.

3. Failing to control the service quality for audit service, control service of financial statements, financial information and other guarantee services.

4. Failing to perform policies and procedures for quality control over each audit.

5. Failing to supply or supply insufficiently, untimely information, documents at the request of competent agencies and organizations in the course of audit quality control.

6. Supplying the inaccuracy, untruthful information, documents to the competent agencies and organizations in the course of audit quality control.

7. Failing to make explanations, cooperate with the competent agencies and organizations in the course of audit quality control.

Chapter 4.

COMPETENCE TO MAKE MINUTES, SANCTION ADMINISTRATIVE VIOLATIONS IN DOMAINS OF ACCOUNTING AND INDEPENDENT AUDIT

Article 54. Competence to make the administrative violation minutes in domains of accounting and independent audit

Persons competent to make the administrative violation minutes in domains of accounting and independent audit include:

1. Persons competent to sanction administrative violations in domains of accounting and independent audit specified in Article 55, Article 56 of this Decree.

2. Civil servants, public employees, officers of the People's Public Security, officers of People’s Army, who are assigned task of inspection, examination over organization and implementation of accounting work, accounting professional activities; implementation of inspection, examination of audit activities, control of audit service quality, audit professional operation, when being on duty, will be entitled to make minutes on administrative violation under their assigned scope of implementing public duties and tasks.

Article 55. The financial inspectorates’ competence of sanctioning administrative violations

1. The financial inspectorates at all levels shall have the powers to sanction administrative violations in domains of accounting and independent audit as follows:

a) Impose warning;

b) A maximum fine of VND 500,000 for individuals and VND 1,000,000 for organizations infringing administratively;

2. The Chief Inspectors of Financial Departments shall have the powers to sanction administrative violations in domains of accounting and independent audit as follows:

a) Impose warning;

b) A maximum fine of VND 25,000,000 for individuals and VND 50,000,000 for organizations infringing administratively;

c) Applying the additional sanctions and remedies specified in this Decree.

3. The Chief Inspector of the Finance Ministry shall have the powers to sanction administrative violations in domains of accounting and independent audit as follows:

a) Impose warning;

b) A fine of up the highest level specified in this Decree, for individuals and organizations infringing administratively;

c) Applying the additional sanctions and remedies specified in this Decree.

Article 56. The People’s Committees at all levels’ competence of sanctioning administrative violations

1. The presidents of the People’s Committees in communes, wards and townships (referred collectively to as the commune-level People’s Committees) shall have the powers to sanction administrative violations in accounting as follows:

a) Impose warning;

b) A maximum fine of VND 5,000,000 for individuals and VND 10,000,000 for organizations infringing administratively;

2. The presidents of the People’s Committees of rural districts, urban districts and provincial towns and cities (referred collectively to as the district-level People’s Committees) shall have the powers to sanction administrative violations in accounting as follows:

a) Impose warning;

b) A maximum fine of VND 25,000,000 for individuals and VND 50,000,000 for organizations infringing administratively;

c) Applying the additional sanctions and remedies specified in this Decree.

3. The presidents of the People’s Committees of provinces and centrally-run cities (referred collectively to as the provincial-level People’s Committees) shall have the powers to sanction administrative violations in domains of accounting and independent audit as follows:

a) Impose warning;

b) A fine of up the highest level specified in this Decree, for individuals and organizations infringing administratively;

c) Applying the additional sanctions and remedies specified in this Decree.

Chapter 5.

IMPLEMENTATION PROVISIONS

Article 57. Implementation organization

The Minister of Finance shall guide, examine and supervise implementation of this Decree.

Article 58. Implementation provisions

1. This Decree takes effect on December 01, 2013.

The Government's Decree No. 185/2004/ND-CP dated November 04, 2004; Decree No. 39/2011/ND-CP dated May 26, 2011, on sanctioning of administrative violations in accounting cease to be effective on the effective date of this Decree.

2. Application of provisions in this Decree to handle violations happening before the effective day of this Decree shall conduct as follows:

The provisions on sanctioning of administrative violations in accounting beneficial for individuals and organizations infringing administratively shall be applied, for acts happening before the effective time of this Decree but being detected after that or currently being considered, handled.

3. For decisions on sanctioning of administrative violations in accounting already promulgated or finished execution before the effective time of this Decree, if individuals or organizations sanctioned administrative violations still complaint, provisions of the Government's Decree No. 185/2004/ND-CP dated November 04, 2004, Decree No. 39/2011/ND-CP dated May 26, 2011, on sanctioning of administrative violations in accounting will be applied for settlement.

4. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decree.