How often do audit firms in Vietnam report on the status of joint ventures with foreign audit firms in providing cross-border audit services? What content does the report on the implementation of joint ventures with foreign auditing firms in providing cross-border auditing services prepared by auditing firms in Vietnam include? Sending method?

1. How often do audit firms in Vietnam report on the status of joint ventures with foreign audit firms in providing cross-border audit services?

Pursuant to Article 14 of Decree 17/2012/ND-CP, the responsibilities of audit firms in Vietnam that participate in joint ventures with foreign audit firms to provide cross-border audit services border:

Responsibilities of audit firms in Vietnam that participate in joint ventures with foreign audit firms to provide cross-border audit services

1. Store all audit records of joint audits to provide to authorities upon request.

2. Be responsible before the law for audit results. Responsible for explaining to the authorities about audit reports, audit records and other issues arising from joint audits with foreign audit firms.

3. Report to the Ministry of Finance every 6 months on the implementation of joint ventures with foreign audit firms in providing cross-border audit services arising during the reporting period. The report form is prescribed by the Ministry of Finance.

4. Subject to annual audit service quality control according to regulations of the Ministry of Finance.

Thus, audit firms in Vietnam are responsible for reporting to the Ministry of Finance every 6 months on the situation of joint ventures with foreign audit firms in providing cross-border audit services arising during the reporting period.

2. What content does the report on the implementation of joint ventures with foreign auditing firms in providing cross-border auditing services prepared by auditing firms in Vietnam include? Method of sending?

Pursuant to Clause 2, Article 4 of Circular 40/2020/TT-BTC, then:

Report on the implementation of joint ventures with foreign audit firms in providing cross-border audit services prepared by audit firms in Vietnam includes the following contents:

– Information on the following contents: joint venture party;

– List of practicing auditors assigned to be in charge of tasks falling under the responsibility of each party in the audit contract;

– List of contracts to provide cross-border audit services concluded within a period of 06 months.

About the method of sending and receiving reports: Periodic reports are shown in the form of paper documents or electronic copies, sent by one of the following methods:

– Send directly;

– Send via postal service;

– Send via email system;

– Other methods as prescribed by law,

Save note: Deadline for submitting reports: No later than July 31 of the reporting year for reports of the first 6 months of the year; No later than January 31 of the following year for reports of the last 6 months of the year.

3. Does a foreign auditing firm providing cross-border auditing services have to report on the performance of a contract to provide cross-border auditing services?

Pursuant to Article 13 of Decree 17/2012/ND-CP, responsibilities of foreign auditing firms providing cross-border auditing services:

Responsibilities of foreign auditing firms providing cross-border audit services

1. Arrange personnel with appropriate professional qualifications to ensure the quality of audit services. Comply with regulations on prohibited acts, cases in which audits are not allowed for practicing auditors and auditing firms and other relevant regulations stipulated in Vietnam’s Law on Independent Auditing.

2. Comply with Vietnamese auditing standards when providing cross-border audit services in Vietnam.

3. Pay taxes and perform other financial obligations related to providing cross-border audit services in Vietnam in accordance with Vietnam’s current tax laws.

4. Every 6 months, report to the Ministry of Finance on the implementation of contracts to provide cross-border audit services arising during the period in Vietnam. The report form is prescribed by the Ministry of Finance.

5. Appoint a responsible person to represent the business to report and explain to Vietnamese authorities related to audit contracts, audit documents, audit reports and other issues related to the provision of cross-border services in Vietnam.

6. Submit to the Ministry of Finance the audited annual financial statements accompanied by the audit report of the independent audit organization and written comments from the audit practice management agency where the enterprise is headquartered on the implementation of legal regulations on audit activities and other legal regulations of the enterprise within 120 days from the end of the fiscal year.

7. Implement the rights and obligations of audit firms specified in Articles 28 and 29 and comply with other relevant regulations stipulated in the Law on Independent Auditing of Vietnam.

Accordingly, foreign audit firms providing cross-border audit services are responsible for reporting every 6 months to the Ministry of Finance on the implementation of contracts to provide cross-border audit services arising during the period in Vietnam.