Standards, conditions, responsibilities and rights of chief accountants according to the law

Can a branch deputy director be the branch’s chief accountant? What are the standards to become a chief accountant?

1. Can a branch deputy director be the branch’s chief accountant?

Companies’ branches according to the provisions of the 2020 Enterprise Law or the 2015 Civil Code are just a dependent unit of the enterprise (DN), without legal status; and according to the Accounting Law 2015, the branch NO must be an accounting unit (only branches of foreign traders in Vietnam are accounting units).

In Article 2 of the 2015 Accounting Law, it is stipulated as follows:

“Article 2. Subjects of application

1. Agencies responsible for collecting and spending the state budget level.

2. State agencies, organizations, and public service units using the state budget.

3. Public service organizations and units that do not use the state budget.

4. Enterprises established and operating under Vietnamese law; branches and representative offices of foreign enterprises operating in Vietnam Male.

5. Cooperatives, cooperative unions.

6. Business households, cooperative groups.

7. Accountants.

8. Practicing accountants; businesses and households providing accounting services.

9 accounting profession.

10. Other agencies, organizations and individuals related to accounting and accounting service business activities in Vietnam.”

According to Clause 4, Article 3 of the 2015 Accounting Law:

“4. Accounting units are agencies, organizations and units specified in Clauses 1, 2, 3, 4 and 5, Article 2 of this Law prepares financial reports.”

Therefore, there will be no title of “chief accountant” of the branch. The title “branch chief accountant”, if there is one, is just the name of the enterprise and not the chief accountant according to regulations.

2. How is the Chief Accountant regulated by law?

Pursuant to Article 53 of the 2015 Accounting Law, it is stipulated as follows:

“Article 53. Chief Accountant

1. The chief accountant is the head of the unit’s accounting apparatus, responsible for organizing and carrying out accounting work in the accounting unit.

2. Chief accountants of state agencies, organizations, public service units using the state budget and enterprises in which the State holds more than 50% of charter capital, in addition to the duties specified in Clause 1 of this Article, also have the task of helping the legal representative of the accounting unit monitor finances at the accounting unit.

3. The chief accountant is under the leadership of the legal representative of the accounting unit; In case there is a superior accounting unit, it is also subject to the direction and inspection of the chief accountant of the superior accounting unit in terms of expertise and operations.

4. In case the accounting unit appoints a person in charge of accounting to replace the chief accountant, the person in charge of accounting must have the standards and conditions specified in Clause 1, Article 54 of this Law and must exercise the responsibilities and rights prescribed for the chief accountant specified in Article 55 of this Law.”

3. Standards, conditions, responsibilities and rights of the chief accountant according to the law

At Article 54 and Article 55 of the Accounting Law 2015 specifically stipulate:

* Standards and conditions of chief accountant

– Chief accountant must have the following standards and conditions:

+ Standards specified in Clause 1, Article 51 of this Law;

+ Have expertise Accounting expertise and expertise from intermediate level or higher;

+ Have a chief accountant training certificate;

+ Have practical work experience in accounting for at least 02 years for people with accounting expertise and expertise from university level or higher and actual work time in accounting for at least 03 years for people with intermediate-level accounting expertise and expertise levels and colleges.

– The Government specifies the standards and conditions of chief accountants suitable for each type of accounting unit.

* Responsibilities and rights of chief accountants

– Chief accountants have the following responsibilities:

+ Implement the provisions of law on accounting and finance in the accounting unit accounting;

+ Organize and operate the accounting apparatus according to the provisions of this Law;

+ Prepare financial reports in compliance with accounting regimes and accounting standards.

– Chief accountant has the right to be independent in terms of expertise and accounting operations.

– Chief accountants of state agencies, organizations, public service units using the state budget and enterprises in which the State holds more than 50% of charter capital, in addition to the rights specified in Clause 2 of this Article, also have the following rights:

+ Have written opinions with the legal representative of the accounting unit on recruitment, transfer, salary increase, rewards and discipline accountants, storekeepers, treasurers;

+ Require relevant departments in the accounting unit to provide complete and timely documents related to the accounting work and financial supervision of the chief accountant;

+ Reserve professional opinions in writing when there are opinions different from those of the decision maker;

+ Report in writing to the person who legal representative of the accounting unit when detecting violations of financial and accounting laws in the unit; In case you still have to comply with the decision, you must report to the immediate superior of the person who made the decision or the competent state authority and will not be responsible for the consequences of implementing that decision.