The order and procedures for granting the Certificate of eligibility to conduct business in auditing services

What conditions need to be met when doing business in auditing services? Order and procedures to be granted a Certificate of eligibility to conduct business in auditing services.

1. What types of businesses are allowed to do business in auditing services?

According to Article 20 of the Law on Independent Auditing 2011, the following are the types of businesses that can do business in auditing services, including:

“Article 20. Types of auditing businesses and branches of foreign auditing businesses in Vietnam

1. Types of businesses The following businesses are allowed to provide audit services:

a) Limited liability companies with two or more members;

b) Partnership companies;

c) Private enterprises.

2. Branches of foreign audit firms in Vietnam are allowed to provide audit services according to legal regulations law.

3. Enterprises and corporate branches that are not qualified to conduct business in auditing services are not allowed to use the term “audit” in their names.

4. Auditing firms are not allowed to contribute capital to establish other auditing firms, except in the case of contributing capital to foreign auditing firms to establish auditing firms in Vietnam.”

Accordingly, this article The prerequisite is that you must establish an enterprise with the type prescribed in Clause 1 of this Article to be able to do business in auditing services.

2. What are the necessary documents to be granted a certificate of eligibility to conduct business in auditing services?

According to Article 5 of Circular 203/2012/TT-BTC on the order and procedures for granting, management and use of Certificates of eligibility to conduct business in auditing services, these are the documents that need to be prepared to be granted the certificate, specifically:

1. Application for issuance of Certificate of eligibility to conduct business in auditing services (according to the form specified in Appendix I).

2. Copy of Business Registration Certificate or Enterprise Registration Certificate or Investment Certificate.

3. List of practicing auditors with full-time labor contracts at the enterprise (according to the form specified in Appendix III).

4. Copy of Auditing Practice Registration Certificate of practicing auditors.

5. Copy of the Decision of the Board of Members on the appointment of Director (General Director) for limited liability companies and partnerships.

6. Copy of company charter.

7. List of organizations and individuals contributing capital, list of partnership members (according to the form prescribed in Appendix IV), which must clearly show the following contents:

– Full name, permanent address, nationality; Number and date of issue, place of issuance of ID card or passport or other legal personal identification for the individual; Number and date of issuance of Audit Practicing Registration Certificate (for individuals who are practicing auditors);

– Name, head office address, number and date of establishment decision (or business registration) for organizations; Full name, permanent residence address, nationality, number and date of issue, place of issuance of identity card, or passport or other legal personal identification; Number and date of issuance of the Audit Practicing Registration Certificate to the individual appointed to represent the capital contribution of the organization;

– Amount of registered capital contribution, value of actually contributed capital, ownership ratio, capital contribution period.

8. Document confirming capital for limited liability companies, specifically as follows:

For newly established enterprises, there must be:

– Minutes of capital contribution of founding members;

– In case the capital is contributed in cash, there must be a written confirmation from a commercial bank licensed to operate in Vietnam regarding the deposit amount of the founding members. The minimum deposit amount must be equal to the amount of capital contributed in cash by the founding members and can only be disbursed after the enterprise is granted a Certificate of eligibility to conduct business in auditing services;

– In case the capital contribution is in assets, there must be a certificate from an organization with valuation function operating in Vietnam on the results of valuation of assets included in capital contribution. The certificate must be valid until the date of submitting the application for a Certificate of eligibility to conduct business in auditing services.

For an active enterprise, there must be a written confirmation from another independent auditing firm on the current capital owned by that enterprise recorded in the enterprise’s financial report at the most recent time (year of registration or the year immediately preceding the year of registration).

3. What is the order and procedures to be granted a certificate of eligibility to conduct business in auditing services?

According to Article 7 of Circular 203/2012/TT-BTC, the order and procedures to be issued a certificate are specified as follows:

(1) The organization requesting the issuance, re-issuance, or adjustment of the Certificate of eligibility to conduct business of auditing services shall send a set of documents as prescribed in this Circular to the Ministry of Finance.

(2) During the time specified in Clause 1, Article 23, Clause 3, Article 24 of the Law on Independent Auditing, from the date of receipt of the documents, if there is no additional request or explanation, the Ministry of Finance will consider issuing, re-issuing, adjusting the Certificate of eligibility to conduct business in auditing services; In case of refusal, the Ministry of Finance must respond in writing and clearly state the reason.

(3) In case the application for issuance, re-issuance or adjustment of the Certificate of eligibility to conduct business in audit services is not valid, within 10 working days from the date of receipt of the application, the Ministry of Finance shall notify the organization requesting the issuance, re-issuance or adjustment of the Certificate of eligibility for business in audit services to complete the application. dossier.

(4) Upon receiving a written request to complete the dossier, the organization applying for issuance, re-issuance, or adjustment of the Certificate of eligibility to conduct business in auditing services must supplement and amend according to the notice and send it to the Ministry of Finance. After 10 working days from the date of receipt of additional or amended documents, if the Ministry of Finance does not have a written request for amendments or supplements, it will consider issuing, re-issuing or adjusting the Certificate of eligibility to conduct business in audit services within the time specified in Clause 1, Article 23, Clause 3, Article 24 of the Law on Independent Auditing.

(5) In case the organization requests to issue, re-issue or adjust the Certificate of eligibility. If the audit service business conditions have been supplemented or amended but are not in accordance with the requirements, the Ministry of Finance will notify the organization requesting the issuance, re-issuance or adjustment of the Certificate of eligibility for audit service business to continue to complete the dossier as prescribed in Clause 3 and Clause 4 of this Article.

Thus, after completing the paperwork to obtain the certificate, you can legally do business in auditing services.