Rights and obligations of enterprises providing audit services

1. What rights and obligations do enterprises providing audit services have?

* According to Article 28 of the Law on Independent Auditing 2011, the rights of audit firms are as follows:

– Providing services specified in Article 40 of this Law;

– Receiving service fees services;

– Establishing an audit service business branch;

– Setting up an audit service business abroad;

– Participating in an international auditing organization, a professional organization on auditing;

– Requesting the audited unit to provide fully and promptly necessary information and documents and solutions Present issues related to audit content; Request asset inventory and debt reconciliation of the audited unit related to audit content; Check all records and documents related to the economic and financial activities of the audited unit inside and outside the unit during the audit;

– Check and confirm economic and financial information related to the audited unit inside and outside the unit during the audit;

– Request relevant organizations and individuals to provide documents Necessary information related to audit content through the audited unit;

– Other rights as prescribed by law.

* Responsibilities of auditing firms are specified in Article 17 of Circular 203/2012/TT-BTC (amended by Clause 1 and Clause 2, Article 5 of the Circular 39/2020/TT-BTC) as follows:

– Maintain and ensure the conditions for being granted the Certificate of eligibility to conduct business in auditing services throughout the operating period.

– Do not correct or erase the content recorded in the Certificate of eligibility to conduct business in auditing services.

– Do not lease, lend, mortgage, Buy, sell, transfer Certificate of eligibility to conduct business in auditing services.

– Report to the Ministry of Finance within 10 days from the date of loss or damage of Certificate of eligibility to conduct business in auditing services.

– Notify in writing (attached with supporting documents) to the Ministry of Finance within 10 days from the date of change in the contents specified in Article 26 of the Law on independent auditing.

– Subject to examination, inspection and compliance with handling decisions of competent state agencies on ensuring audit service business conditions and the use of Certificate of eligibility for audit service business.

– Submit a Report on the maintenance of audit service business conditions as prescribed in Clause 1, Article 5 of Circular 39/2020/TT-BTC.

– Submit the annual operations report as prescribed in Clause 2, Article 5 of Circular 39/2020/TT-BTC.

2. Can businesses providing audit services temporarily suspend business?

According to Article 33 of the Law on Independent Auditing 2011 and Article 14 of Circular 203/2012/TT-BTC regulates the suspension of business of audit service enterprises as follows:

– Auditing firms are allowed to temporarily suspend the business of auditing services, but the suspension period must not exceed twelve consecutive months. Auditing firms that want to temporarily suspend the business of auditing services must send a notice of temporary suspension of the business of auditing services (according to the form specified in Appendix XI) to the Ministry of Finance at least 15 days before the intended date of temporary suspension of business.

– An audit firm that temporarily stops providing audit services without completing the audit contract signed with the client must reach an agreement with the client on the implementation of that contract.

– The list of audit firms temporarily suspending audit service business is published on the website of the Ministry of Finance.

– If an auditing firm temporarily stops providing audit services, the branches of that auditing firm must also temporarily stop providing auditing services.

– When resuming operations, the auditing firm must ensure the conditions prescribed by law and must notify the Ministry of Finance in writing at least 10 days before the resumption date.

Thus, according to the above regulations, audit service enterprises are allowed to temporarily suspend business but must notify the Ministry of Finance within the prescribed time limit.

3. What should be done if an enterprise providing audit services temporarily suspends business and resumes operations without notice?

According to Clause 3, Article 14 of Circular 203/2012/TT-BTC stipulating the notification responsibilities of audit service enterprises temporarily ceasing business as follows:

When resuming operations, the audit enterprise must ensure the conditions prescribed by law and must notify in writing the Ministry of Finance no later than 10 days before the date of operation. resume operation.

Pursuant to the above regulations, audit service enterprises that temporarily suspend business when resuming operations are responsible for notifying in writing the Ministry of Finance within the prescribed time limit. In case the enterprise resumes operations without notification, it will be handled according to Point g, Clause 3, Article 66 of Decree 41/2018/ND-CP as follows:

“Article 66. Penalties for violations of regulations on notification and reporting obligations of auditing firms

3. Fines from 10,000,000 VND to 20,000,000 VND for an auditing firm that commits one of the following acts:

…

g) Failure to notify in writing to the Ministry of Finance when resuming operations after a temporary suspension of audit business;”

Accordingly, this fine is the fine applied to organizations according to Clause 2, Article 5 of the Decree 102/2021/ND-CP.

Thus, audit service enterprises have the right to temporarily suspend business but must have a notice sent to the Ministry of Finance according to regulations. In case the enterprise resumes operations, it is also necessary to send a notification to the Ministry of Finance at least 10 days before the date of reopening. Enterprises that resume operations without notification will be punished according to the provisions of Point g, Clause 3, Article 66 of Decree 41/2018/ND-CP.