The cases that practicing auditors are not allowed to audit

Practicing auditors are not allowed to audit in the following cases:

1. as members, founding shareholders, or purchasing shares or capital contribution in the audited unit;
2. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
3. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;
4. within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
5. as those who are doing or have done in the preceding year the work of book keeping, making financial statements or internal audit for the audited units;
6. as those who are doing or have done in the preceding year the service which is different from the services specified in clause 5 of this Article affecting the independence of practicing auditors in accordance with provisions of professional ethical standards of accounting and auditing;
7. with their parents, spouse, child, natural brother, sister who have remarkable direct or indirect financial interests in the audited units in accordance with provisions of professional ethical standards of accounting, auditing or those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
8. Other cases in accordance with regulations of law.

The types of auditing firms and branches of foreign auditing firms in Vietnam

1. The following enterprises are entitled to carry on business of audit service:
2. a) Limited liability companies with two or more members;
3. b) Partnerships;
4. c) Private enterprises.
5. Branches of foreign auditing firms in Vietnam are carried on business of audit services in accordance with the law regulations.
6. Enterprises, enterprises’ branches that are insufficient conditions to carry on business of audit services are not entitled to use the term “audit” in their names.

4. Auditing firms are not entitled to contribute capital to set up another auditing firm, unless the contribution of capital to foreign auditing firms to set up an auditing firm in Vietnam.