Regulations on standards and conditions of chief accountants, in charge of accounting, legal regulations

1. How are the standards and conditions of the chief accountant in charge of accounting regulated?

According to Article 21 of Decree 174/2016/ND-CP stipulating the standards and conditions of the chief accountant, in charge of accounting as follows:

– Chief accountant, in charge of accounting must have the standards specified in Points a, c, d, Clause 1, Article 54 of the Law accounting and not falling into the cases of not being allowed to act as accountants as prescribed in Article 19 of this Decree. The Ministry of Finance regulates the organization, training and issuance of chief accountant certificates.

– Chief accountants, in charge of accounting of the following accounting units must have professional accounting expertise at university level or higher, including:

+ Agencies in charge of state budget revenue and expenditure at all levels;

+ Ministries, ministerial-level agencies, agencies Government agencies, National Assembly agencies, other central state agencies and accounting units under these agencies;

+ Public service units under ministries, ministerial-level agencies, Government agencies, other central agencies, Provincial People’s Committees;

+ Specialized agencies under the Provincial People’s Committee and equivalent; State management agencies under these agencies;

+ Central agencies organized vertically in the province;

+ Political organizations, socio-political organizations, political-social-professional organizations, social organizations, socio-professional organizations at the central and provincial levels using state budget;

+ The investment project management board has its own accounting apparatus, using state budget for group A projects and important national projects;

+ Level 1 estimating unit under the district budget;

+ Enterprises established and operating under Vietnamese law except for the case specified in Point g, Clause 3 of this Article;

+ Cooperation communes and cooperative unions with charter capital of 10 billion VND or more;

+ Foreign enterprise branches operating in Vietnam.

– Chief accountants, in charge of accounting of the following accounting units must have professional accounting expertise at the professional intermediate level or higher, including:

+ Specialized agencies under the district People’s Committee with organized accounting apparatus (except level 1 budget units under the district budget);

+ Central agencies organizing vertical organizations located at the district level, provincial agencies located at the district level;

+ Political organizations, socio-political organizations, political-social-professional organizations, social organizations, socio-professional organizations at the district level that use state budget;

+ Investment project management boards have their own accounting apparatus, using state budget except in cases where specified at Point g, Clause 2 of this Article;

+ Budget accounting and financial units of communes, wards and towns;

+ Public service units other than those specified at Point c, Clause 2 of this Article;

+ Enterprises established and operating under Vietnamese law without state capital, with charter capital of less than 10 billion VND;

+ Cooperatives and unions of cooperatives with charter capital of less than 10 billion VND.

– For organizations and units other than those specified in Clauses 2 and 3 of this Article, standards for qualifications and professional expertise of chief accountants and in charge of accounting are decided by the legal representative of the unit in accordance with the provisions of the Accounting Law and other regulations. Other provisions of relevant laws.

– For chief accountants, in charge of accounting of parent companies that are state-owned enterprises or enterprises with state capital accounting for over 50% of charter capital, they must have an actual working time in accounting for at least 05 years.

– Standards and conditions for professional expertise of chief accountants, in charge of accounting of units of the armed forces regulated by the Ministry of National Defense and the Ministry of Public Security.

2. Can one be appointed in charge of accounting when the chief accountant has not yet been appointed?

According to Article 20 of Decree 174/2016/ND-CP stipulates as follows:

Chief accountant, in charge of accounting

– Accounting units must arrange chief accountants, except for the units specified in Clause 2 of this Article. In case the unit cannot immediately appoint a chief accountant, arrange a person in charge of accounting or hire a service to be the chief accountant according to regulations. The maximum time to arrange a person in charge of accounting is 12 months, after this time the accounting unit must arrange a person to work as chief accountant.

– In charge of accounting:

+ Accounting units in the state sector include: Accounting units have only one accountant or one person working part-time; The budget accounting and finance units of communes, wards and towns do not appoint chief accountants but only appoint chief accountants.

+ Micro-enterprises according to the law on supporting small and medium-sized enterprises are assigned to be in charge of accounting but are not required to appoint chief accountants.

– Time limit for appointing chief accountants of accounting units in the field of state accounting, The term of appointment of the chief accountant of the units specified in Point a, Clause 2 of this Article is 5 years, after which the procedures for re-appointing the chief accountant, in charge of accounting, must be carried out.

– When changing the chief accountant, in charge of accounting, the legal representative of the accounting unit or the person managing and operating the accounting unit, the transfer of work and accounting documents must be organized between the chief accountant, in charge of old accounting, and the accountant. The new chief accountant, in charge of accounting, at the same time notify the relevant departments in the unit and the agencies where the unit opens transaction accounts of the full name and sample signature of the new chief accountant, in charge of accounting. The new chief accountant, in charge of accounting, is responsible for his or her own accounting work from the date of work handover. Former chief accountants and in charge of accounting must still be responsible for accounting work during their time in charge.

– The Ministry of Home Affairs guides work responsibility allowances, authority, and procedures for appointment, reappointment, dismissal, and replacement of chief accountants and in charge of accounting of accounting units in the field of state accounting.

Accordingly, in case the unit cannot immediately appoint a chief accountant then arrange a person in charge of accounting or hire a service to act as chief accountant according to regulations. The maximum time to arrange a person in charge of accounting is 12 months. After this time, the accounting unit must arrange a person to be the chief accountant.

3. If the company does not re-appoint the chief accountant or in charge of accounting, will the company be fined?

According to Article 17 of Decree 41/2018/ND-CP stipulating penalties for violations of regulations on organizing the accounting apparatus, arranging accountants or hiring accountants as follows:

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

+ Hire organizations and individuals that do not meet the standards and conditions to practice accounting to provide accounting services for your unit;

+ Failure to re-appoint the chief accountant and in charge of accounting within the prescribed time limit;

+ Not organizing the handover of accounting work when there is a change in the accountant, chief accountant, or in charge of accounting;

+ Failure to notify according to regulations when changing chief accountant or in charge of accounting.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

+ Failure to organize the accounting apparatus of the accounting unit; Do not arrange people to work as accountants or chief accountants or do not hire organizations or individuals providing accounting services to work as accountants or chief accountants according to regulations;

+ Arranging accountants who are not allowed to act as accountants by law;

+ Arranging an accountant, chief accountant, or person in charge of accounting who does not meet the prescribed standards and conditions;

+ Appointing chief accountant and in charge of accounting without following the prescribed order and procedures.

– Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts:

+ Arrange people to be responsible for managing and operating the accounting unit and working as an accountant, warehouse keeper, treasurer or buying and selling assets, except for private enterprises, limited liability companies owned by an individual, other types of enterprises that do not have state capital and are micro enterprises according to the provisions of law on supporting small and medium enterprises;

+ Arranging a person as chief accountant who does not meet the prescribed standards and conditions;

+ Hiring someone as chief accountant who does not meet the prescribed standards and conditions.

– Remedial measures:

Appoint or hire an accountant, chief accountant, or person in charge of accounting who meets the prescribed standards and conditions for the cases specified in Points a and b, Clause 1; Points b, c Clause 2; Points b and c, Clause 3 of this Article.

Accordingly, a fine from 5,000,000 VND to 10,000,000 VND will be imposed for failure to re-appoint the chief accountant and in charge of accounting within the prescribed time limit.