Decree 84/2016 / ND-CP on auditing for units with public interest

DECREE

ON STANDARDS AND CONDITIONS FOR PRACTICE AUDITORS, AUDITORS ARE ACCEPTED TO AUDITORS FOR UNITS WITH PUBLIC INTERESTS

Pursuant to the Law on Organization of the Government dated April 30, 2013, 19 year of 6;

Pursuant to the Law on independent audit dated March 29, 3;

Pursuant to the Law on Securities dated June 29, 6 and the Law amending and supplementing a number of articles of the Law on Securities dated November 2006, 24;

Pursuant to the Investment Law dated 26 month 11 year 2014;

At the proposal of the Minister of Finance;

The Government promulgates a Decree on standards and conditions for practicing auditors and auditing organizations approved to audit for entities with public interests.

Chapter I

GENERAL RULES

Article 1. Scope

This Decree provides for standards and conditions for practicing auditors, auditing organizations are approved to audit units with public interests.

Article 2. Subject of application

1. Auditing organizations and practicing auditors are approved to audit for units with public interests.

2. Entities with public interest, except credit institutions that are not public companies, credit institutions that do not list or offer securities to the public.

3. Other organizations and individuals involved in the consideration of standards and conditions for practicing auditors, audit organizations that are approved to audit for units of public interest.

Article 3. Explain words

In this Decree, the terms below are construed as follows:

1. “Auditing organization” means an audit firm and a branch of a foreign audit firm lawfully operating in Vietnam.

2. “Approved audit organization” means an audit organization approved by a competent state agency to audit entities with public interests.

3. “Approved practicing auditor” means a practicing auditor approved by a competent state agency to audit entities with public interests.

4. “Approval period” means the period during which an auditing organization or practicing auditor is approved to audit for an entity with public interest, calculated according to the calendar year from January 01 to December 01. .

Article 4. Units with the public interest

1. Entities with public interest are those specified in Article 53 of the Law on Independent Auditing.

2. Entities with public interest in the securities sector, including: Large-scale public companies as prescribed by law on securities, listing organizations, organizations issuing securities to the public, public securities companies, securities investment companies, funds and fund management companies.

3. Entities with other public interests, including:

a) Public companies, except large-scale public companies specified in Clause 2 of this Article;

b) Insurance enterprises, reinsurance enterprises, insurance brokers, branches of foreign non-life insurance enterprises (except for insurance enterprises specified in Clause 2 of this Article);

c) Other enterprises or organizations related to the interests of the public due to the nature and scale of operations of such units as prescribed by law.

Chapter II

SPECIFIED

Article 5. Conditions for auditing organizations to be approved

1. An audit organization that is approved to conduct audits for units with public interests must fully satisfy the following conditions:

a) Having valid Certificate of eligibility for business of audit services issued by the Ministry of Finance;

b) Having a charter capital or allocated capital (for branches of foreign auditing firms in Vietnam) from 6 billion VND or more and must regularly maintain the equity on the balance sheet at no less than 6 billion VND;

c) Having 10 or more practicing auditors, including Director or General Director, who fully satisfy the standards specified in Article 6 of this Decree;

d) Having been engaged in audit activities in Vietnam for at least 24 months counting from the date of being certified by a competent agency of the list of first-time audit practice registration or from the date of being granted the Certificate of Business Eligibility. first-time audit service business to the date of submission of registration dossiers for audit performance;

dd) Having issued an audit report on the annual financial statement to at least 200 audited entities from October 01 of the previous year to September 10 of the year that the registration dossier is submitted.

Where the auditing organization has been approved in the year of filing, there must be additional conditions that have issued an audit report on the annual financial statements (or a review report of the financial statement) for at least 10 units with the public interest from October 01 of the previous year to September 10 of the year that the registration dossier is submitted;

e) Having a quality control system built in accordance with the provisions of Vietnamese auditing standards;

g) Having performed professional liability insurance or set up an occupational risk reserve fund according to regulations of the Ministry of Finance;

h) Not falling into the cases that are not considered and approved as prescribed in Article 7 of this Decree;

i) Fully and punctually submit the dossier of registration to perform the audit as prescribed in Articles 9 and 10 of this Decree.

2. An audit organization that is approved to conduct an audit for an entity with public interests in the securities sector, in addition to meeting the conditions specified at Points a, b, e, g, h and i Clause 1 of this Article, the following conditions must be met:

a) Having 15 or more practicing auditors, including Director or General Director, who fully satisfy the standards specified in Article 6 of this Decree;

b) Having been engaged in audit activities in Vietnam for at least 36 months counting from the date of being certified by a competent agency of the list of first-time audit practice registration or from the date of being granted the Certificate of Business Eligibility. first-time audit service business to the date of submission of registration dossiers for audit performance;

c) Having issued an audit report on annual financial statements to at least 250 audited entities from October 01 of the previous year to September 10 of the year that the registration dossier is submitted.

Where the auditing organization has been approved in the year of filing, there must be additional conditions that have issued an audit report on the annual financial statements (or a review report of the financial statements) for at least 20 An entity with public interest in the securities sector is from October 01 of the previous year to September 10 of the year that the application is submitted.

Article 6. Standards applicable to practicing auditors

In addition to the standards specified in the Law on Independent Audit, an approved practicing auditor must have the following standards:

1. Being on the list of auditors eligible to practice auditing in the approved period publicized by the Ministry of Finance at the time of submission of audit registration dossiers.

2. Having at least 24 months of practicing auditing practice in Vietnam from the date of being certified by a competent authority to satisfy the audit practice conditions to the date of submitting the application for registration to perform audit.

Article 7.- The cases of auditing organizations and practicing auditors are not considered and approved

1. Cases that are not considered and approved include:

a) The audit organization is being suspended from the business of audit services in accordance with the law on independent audit;

b) Auditing organization fails to correct, promptly remedy the mistakes at the request of the competent state agency;

c) Auditing organizations have complaints about audit results and have been concluded by competent state agencies as having mistakes;

d) Auditing organization has unsatisfactory audit quality according to inspection results or conclusions of competent agencies or organizations in the year to be considered;

dd) Practicing auditors in charge of audit dossiers have unsatisfactory audit quality according to examination results or conclusions of competent agencies and organizations during the year to be considered;

e) Auditing organizations, practicing auditors have acts of violating the law related to auditing practice and have been handled by competent agencies in accordance with provisions of law during the year to be viewed. review;

g) Auditing organizations, auditors practicing forging, making false statements in the declaration of information in the dossier of registration for participation in audit;

h) Auditing organizations, practicing auditors fail to give explanations, make unsatisfactory explanations or fail to provide information, data related to audit activities at the request of competent state agencies;

i) Auditing organizations, practicing auditors are canceled their status of audit approvals for a period of less than 24 months from the date of cancellation;

k) Auditing organizations, practicing auditors fail to notify and report in accordance with the law on independent audit.

2. Auditing organizations or practicing auditors falling into one of the cases specified at Points d, dd, g and h, Clause 1 of this Article shall, after 12 months from the date of conclusion or decision on handling, are issued. of the competent authority shall be considered and approved.

Article 8. Handling of audit contracts signed in case of disapproval

1. Auditing organizations or practicing auditors that are not approved in any period may not continue to perform signed audit and other assurance services contracts and may not sign additional audit contracts. with an entity with public interest in that period, except for the case specified in Clause 2 of this Article.

2. Auditing organizations, practicing auditors approved in the previous period but not approved in the following period may only continue to perform the signed annual financial statement audit contract with the interested entity. public in the following period if all of the following conditions are satisfied:

a) The semi-annual financial statement is reviewed during an approved period for the entity with the public interest that is required to review the semi-annual financial statements;

b) To issue an audit report on the financial statements within 90 days from the end of the fiscal year of the entity with the public interest.

Article 9. Registration file to perform audits for units with the public interest

1. An application for an audit registration for an entity with public interests (made according to the form in the Appendix issued with this Decree).

2. Copy of Certificate of eligibility for audit service business.

3. List of auditors applying for approval, clearly stating the actual time (number of months) to practice auditing in Vietnam from the date on which the competent authority confirms that they are eligible for auditing practice. maths.

4. A report on the financial position and operation of the audit organization in the preceding year, including:

a) Audited financial statements;

b) List of audit reports as prescribed in Point dd Clause 1 or Point c Clause 2 Article 5 of this Decree;

c) Organization, operation and audit experience of practicing auditors and auditing organizations;

d) Law violations handled for administrative violations by auditing organizations (if any);

dd) Major fluctuations in the fiscal year affecting the organization, operations and business results of the auditing organization (such as increasing or decreasing members to contribute capital; increasing or decreasing the charter capital);

e) Major fluctuations in the year related to practicing auditors (such as increase or decrease of practicing auditors, violations of professional ethics of practicing auditors);

g) A description of the development and maintenance of the quality control system required by the audit standards.

5. A certified true copy of the contract or certificate of professional liability insurance which is still valid in case the auditing organization does not set up a reserve fund for professional risks.

6. In case of registration from the second time onwards, the audit organization is not required to submit the documents specified in Clause 2, Point c, Point g, Clause 4, Clause 5 of this Article if there is no change compared to the first registration. most recently signed.

Article 10. Examining, accepting and publicizing the list of auditing organizations and practicing auditors

1. From October 01 to October 10 every year, an audit organization shall submit 20 set of dossiers as prescribed in Article 10 of this Decree to the Ministry of Finance for approval to conduct audits for the beneficial entity. public interest. In case an auditing organization registers to audit an entity with public interests in the securities sector, it shall concurrently submit 01 set of dossiers to the State Securities Commission.

2. During the review process, if the dossier is not in accordance with regulations, within 10 working days from the date of receipt of the dossier, the competent authority shall approve and request the audit organization to complete the dossier. The audit organization must complete the dossier before November 05. In case the dossier does not meet the requirements as prescribed, the agency competent to approve it shall notify in writing the audit organization.

3. The Ministry of Finance considers, approves and publicizes the list of auditing organizations and the list of practicing auditors approved to conduct audits for entities with public interests before November 15 of each year on your website, web portal. Auditing organizations and practicing auditors named in this list may conduct audits for units with public interests specified in Clause 11, Article 3 of this Decree.

The State Securities Commission considers, approves and publicizes the list of auditing organizations and the list of practicing auditors approved to audit units with public interests in the securities sector before the date of November 20 every year on its website and portal. Auditing organizations and practicing auditors named in this list are entitled to audit for units with public interests specified in Clause 11, Article 2 of this Decree.

4. Based on the list of audit organizations and the list of approved practicing auditors, the public interest unit selects the auditing organization and the practicing auditor to sign an audit contract for the audit organization. unit itself. List of auditing organizations and practicing auditors approved to audit for entities with public interest and list of auditing organizations and practicing auditors approved to audit for entities with public interests they are in the field of securities, which are updated when there is a decision to change by a competent authority.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 11. Implementation effect and responsibility for implementation

1. This Decree takes effect on February 01, 7.

2. The Minister of Finance is responsible for guiding the implementation of this Decree. 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 and relevant organizations and individuals shall be responsible for the implementation of this Decree. this decision./