Penalties for violations against regulations on audit statements

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the auditor that commit one of the following violations:

a) Signing audit statements ultra vires;

b) Signing audit statements before the financial statements’ audit dates.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the auditor that commit one of the following violations:

a) Signing audit statements despite the fact that he/she is not an audit practitioner;

b) Signing audit statements for more than three consecutive years for an audited unit.

3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the auditing firm in the following cases :

a) Appointing an audit practitioner to sign audit statements ultra vires;

b) Publishing an audit statement which is signed before the financial statements is;

c) The audit statement does not have sufficient audit practitioners’ signatures;

d) Failure to explain sufficiently and punctually the qualified opinions in audit statements upon request of the competent authority or representatives of audited units’ owners.

4. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for failure to explain the qualified opinions in audit statements upon request of the competent authority or representatives of audited units’ owners.

5. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed the auditing firm committing one of the following violations:

a) Appointing a person who is not an audit practitioner to sign audit statements;

b) Appointing an audit practitioner to sign audit statements for more than three consecutive years for an audited unit.

6. Additional penalties:

a) The audit practitioner committing the violation mentioned in Point a, Clause 2 of this Article shall have his/her certificate of audit practice registration suspended for 3-6 months from the day the decision on penalty imposition comes into effect (if the person is an audit practitioner at the time the violation is discovered);

b) The auditing firm recommitting the violation mentioned in Point a, Clause 5 of this Article shall have its certificate of eligibility to provide audit services suspended for 6-12 months from the day the decision on penalty imposition comes into effect.

Article 49. Penalties for violations against regulations on independence

1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for one of the following violations:

a) False information on and presentation of audit practitioners, auditing firms or Vietnamese branches of foreign auditing firms’ qualifications, experience and ability to provide audit services;

b) Purchasing, receiving, giving, holding audited units’ shares or capital, regardless of amount;

c) Trading bonds or other assets belonging to audited units that affect independence as specified in the accounting and audit code of ethics;

d) Receiving or demanding any kind of payment or benefit from audited units other than service fees and negotiated costs specified in the contract;

dd) Extorting, swindling the clients and audited units;

e) Interfering in the business activities of clients and audited units during the audit process;

g) Collecting debts for audited units.

2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for one of the following violations:

a) Colluding with audited units to tamper with accounting documents, financial statements, audit documents and alter audit results;

b) Forging or falsifying audit documents;

c) Carrying out auditing works in prohibited cases as specified in regulations of law;

d) Practicing audit as an individual;

dd) Working for two or more auditing firms or Vietnamese branches of foreign auditing firms at the same time;

e) Contributing capital to two or more auditing firms.

3. Additional penalty:

The audit practitioner committing any of the violations specified in Points d, e, f, Clause 2 of this Article shall have his/her certificate of audit practice registration suspended for 3-6 months from the day the decision on penalty imposition comes into effect.

4. Remedial Measure:

Return illegal profits earned by violations mentioned in Points a, b, c, Clause 2 of this Article.