Decree 41/2018/ND-CP on administrative sanctions for violations in the field of accounting and auditing.

DECREE

REGULATIONS ON PENALTIES FOR ADMINISTRATIVE VIOLATIONS IN THE FIELD OF ACCOUNTING AND INDEPENDENT AUDITING

Pursuant to the Law on Organization of the Government dated April 30, 2013, 19 year of 6;

Pursuant to the Law on Handling administrative violations dated June 20, 6;

Based on the Accounting Law dated November 20, 2015;

Based on the Law on Independent Auditing dated March 29, 2011;

At the proposal of the Minister of Finance;

The government has issued a Decree stipulating penalties for administrative violations in the field of accounting and independent auditing.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree regulates administrative violations, statute of limitations for penalties, forms of penalties, penalty levels, remedial measures, authority to draw up violation reports, and authority to impose penalties for administrative violations in the field of accounting and independent auditing.

2. Administrative violations related to accounting and independent auditing that are not stipulated in this Decree shall be subject to the provisions of other Government Decrees on administrative sanctions in the relevant areas of state management for punishment.

Article 2. Subject of application

1. Domestic and foreign individuals and organizations (hereinafter referred to as individuals and organizations) who commit administrative violations in the field of accounting and independent auditing.

2. Household businesses and cooperatives that violate the provisions of this Decree shall be subject to penalties as if they were individuals who committed the violations.

3. Organizations subject to administrative penalties for violations in the field of accounting and independent auditing as stipulated in this Decree include:

a) A state agency commits a violation that does not fall within its assigned state management duties;

b) Organizations and public service units that utilize state budget funds;

c) Organizations and public service units that do not use state budget funds;

d) Enterprises established and operating under Vietnamese law; branches and representative offices of foreign enterprises operating in Vietnam;

d) Cooperatives, cooperative unions;

e) Professional organizations for accounting and auditing; training institutions for accounting and auditing;

g) Foreign organizations that generate income from providing services or services related to goods in Vietnam.

4. The person authorized to draw up the report and impose administrative penalties, and other relevant agencies, organizations, and individuals.

Article 3. Statute of limitations for administrative penalties.

1. The statute of limitations for imposing administrative penalties in the field of accounting is 2 years.

2. The statute of limitations for imposing administrative penalties in the field of independent auditing is one year.

3. The time for calculating the statute of limitations for administrative violations stipulated in Clauses 1 and 2 of this Article is prescribed as follows:

a) For administrative violations that have ended, the statute of limitations is calculated from the time the violation ceased;

b) For administrative violations that are in progress, the statute of limitations is calculated from the time the violation is discovered.

4. In cases where administrative penalties against individuals are referred by the prosecuting authority, the statute of limitations shall be applied according to the provisions of Clauses 1, 2, and 3 of this Article. The time taken by the prosecuting authority to receive and consider the case shall be included in the statute of limitations for imposing administrative penalties.

5. If, within the time limits stipulated in Clauses 1, 2, and 3 of this Article, an individual or organization deliberately evades or obstructs the imposition of penalties, the statute of limitations for administrative penalties shall be recalculated from the time the act of evasion or obstruction ceases.

Article 4. Forms of administrative sanctions for violations

1. Main forms of penalties:

For each administrative violation in the field of accounting and independent auditing, the offending individual or organization shall be subject to one of the following main forms of penalties:

a) Warning;

b) Fine.

2. Additional forms of punishment:

Depending on the nature and severity of the violation, organizations and individuals committing administrative violations in the field of accounting and independent auditing may also be subject to one or more of the following additional penalties:

a) Revocation of the right to use the Certificate of Registration for Accounting Services or the Certificate of Registration for Auditing Services for a period of 03 to 06 months;

b) Revoking the right to use the Certificate of Eligibility to conduct accounting and auditing services for a period of 01 to 12 months;

c) Suspend the organization of knowledge updates for a period of 01 to 03 months;

d) Confiscation of evidence of administrative violations.

Article 5. Remedial measures

Individuals and organizations committing administrative violations in the field of accounting and independent auditing, in addition to being subject to the penalties prescribed in Article 4 of this Decree, may also be subject to the following remedial measures:

1. Supplement the missing elements of the document;

2. Mandate the cancellation of accounting documents that have been falsified or forged;

3. Mandating the creation of supplementary documents that were not created when economic or financial transactions occur;

4. Mandating the cancellation of accounting documents that have been prepared multiple times for a single economic or financial transaction;

5. Compel the addition of incomplete elements to the accounting records;

6. Mandatory correction of accounting records to accurately reflect reality in cases where there are no accounting documents to substantiate the information and figures in the accounting records, or where the figures in the accounting records do not match the accounting documents;

7. Mandatory correction of accounting records to accurately reflect reality in cases where the information and figures recorded in the accounting records of the current year do not follow the information and figures recorded in the accounting records of the immediately preceding year;

8. Mandatory recording of off-book transactions involving assets and liabilities of the entity;

9. Mandatory restoration of accounting records;

10. It is mandatory to prepare and present financial statements in accordance with accounting regulations and accounting standards;

11. Mandatory submission and public disclosure of audit reports attached to financial statements;

12. Requiring correction of false or misleading information;

13. Appoint or hire accountants, chief accountants, or accounting managers who meet the required qualifications and conditions;

14. Compulsory return of any illegal profits obtained from committing administrative violations.

Article 6. Fines in the field of accounting and independent auditing

1. The maximum fine for an administrative violation in the field of accounting and independent auditing is VND 50.000.000 for individuals and VND 100.000.000 for organizations.

2. The fines stipulated in Chapter II of this Decree are the fines applicable to organizations, except for the cases specified in Clauses 1 of Articles 7; 8; 9; 10; 11; 13; 14; 15; 16; 17; Article 19; Clauses 1 and 3 of Articles 21; 22; Articles 23; 24; 26; 33; 34; Clauses 1 and 3 of Article 36; Clause 1 of Article 38; Clauses 2 and 3 of Article 39; Clauses 1 and 2 of Article 48; Clause 1 of Article 57; Clauses 1 and 2 of Article 61; and Article 67, which are the fines applicable to individuals. For organizations committing the same violation, the fine is twice the fine for individuals.

3. The authority to impose penalties of the positions specified in Chapter III of this Decree is the authority to apply to an administrative violation committed by an individual. In the case of monetary penalties, the authority to impose penalties on an organization is twice the authority to impose penalties on an individual holding that position.

Chapter II

FORMS AND LEVELS OF PENALTIES IN THE FIELD OF ACCOUNTING

Section 1. VIOLATIONS IN ACCOUNTING PRACTICES

Article 7. Penalties for violations of general regulations on accounting law.

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Incorrect application of regulations regarding writing and numerals in accounting;

b) Incorrect application of regulations regarding currency units in accounting;

c) Incorrect application of accounting period regulations;

d) Applying the wrong accounting system that the entity is subject to.

2. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on organizations that issue or publish accounting standards, auditing standards, or accounting regulations without proper authority.

Article 8. Penalties for violations of regulations on accounting documents

1. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) The accounting document template does not contain all the essential information as required by regulations;

b) Erasing or altering accounting documents;

c) Sign accounting documents using red ink that fades easily;

d) Sign accounting documents using a pre-engraved signature stamp;

d) Payment vouchers that are not signed on each copy.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Preparing accounting documents with insufficient copies as required for each type of accounting document;

b) Signing accounting documents before all the required information has been entered is the responsibility of the signatory;

c) Signing accounting documents without proper authority;

d) A person's signature is inconsistent with or does not match the signature sample register;

d) Accounting documents lack sufficient signatures according to the designated positions on the documents;

e) Failure to translate accounting documents in foreign languages ​​into Vietnamese as required;

g) Causing damage or loss to accounting documents and records while they are in use.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Falsifying or misrepresenting accounting documents, but not to the extent of incurring criminal liability;

b) Agreeing with or coercing others to falsify or misrepresent accounting documents, but not to the extent of incurring criminal liability;

c) Prepare accounting documents with different contents across copies in cases where multiple copies of an accounting document are required for a single economic or financial transaction;

d) Failure to prepare accounting documents when economic or financial transactions occur;

d) Creating multiple accounting documents for a single economic or financial transaction;

e) Making payments when the payment voucher does not have all the required signatures of authorized persons as stipulated by accounting laws.

4. Remedies:

a) Supplementing the incomplete elements of the documentation for the act specified in point a, clause 1 of this Article;

b) To order the cancellation of accounting documents that have been falsified or forged in relation to the acts specified in point a, clause 3 of this Article;

c) Requiring the creation of supplementary documents that were not created when economic or financial transactions occur, in relation to the actions specified in point d, clause 3 of this Article;

d) Forcing the cancellation of accounting documents that have been prepared multiple times for a single economic or financial transaction, in relation to the actions specified in point d, clause 3 of this Article.

Article 9. Penalties for violations of regulations on accounting records

1. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) The accounting ledger is prepared without clearly stating the name of the accounting unit; the name of the ledger, the date of preparation; the date of closing; lacking the signatures of the person who prepared the ledger, the chief accountant, and the legal representative of the accounting unit; without numbering the pages; and without a seal affixed between the pages of the paper accounting ledger;

b) Accounting ledgers must not be written in ink (except when the entity chooses to use electronic means), with entries inserted above or below existing entries, entries written over existing ones, or entries written with spaces between lines; blank pages must not be crossed out; total figures must not be added up when a page is full; and total figures from a previous page must not be transferred to the beginning of the next page.

c) Not bound into separate books for each accounting period or lacking the required signatures and stamps after printing (except for types of books that are not required to be printed according to regulations in cases where the unit chooses to store accounting books electronically);

d) The accounting ledger template does not contain all the essential information as required by regulations.

2. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) The accounting records are not fully filled out according to the essential contents as prescribed;

b) Correcting errors in accounting records not in accordance with prescribed methods;

c) Do not print accounting ledgers on paper after closing the books electronically for types of accounting ledgers that are required to be printed on paper according to regulations.

3. A fine of between VND 5.000.000 and VND 10.000.000 for one of the following acts:

a) Failure to open accounting books at the beginning of the accounting year or from the date of establishment of the accounting unit;

b) There are no accounting documents to substantiate the information and figures recorded in the accounting books, or the figures in the accounting books do not match the accounting documents;

c) The information and figures recorded in the accounting books for the current year do not follow the information and figures recorded in the accounting books of the immediately preceding year, or the accounting books are not recorded continuously from the time they are opened until they are closed;

d) Failure to close accounting books in cases where the law requires them to be closed.

4. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Premature cancellation or intentional damage to accounting records;

b) Omitting from the accounting records assets and liabilities of the entity, or those related to the entity but not to the extent of incurring criminal liability.

5. Remedies:

a) To require the addition of incomplete elements to the accounting records as stipulated in point a, clause 2 of this Article;

b) Mandating the correction of accounting records to accurately reflect reality in cases where there are no accounting documents to substantiate the information and figures in the accounting records, or where the figures in the accounting records do not match the accounting documents as stipulated in point b, clause 3 of this Article;

c) Mandating the correction of accounting records to accurately reflect reality in cases where the information and figures recorded in the accounting records of the current year do not follow the information and figures recorded in the accounting records of the immediately preceding year as stipulated in point c, clause 3 of this Article;

d) To compel the restoration of accounting records for violations of the regulations specified in point a, clause 4 of this Article;

d) Mandatory inclusion in the accounting records of acts of keeping assets and liabilities of the entity or related to the entity violating the provisions of point b, clause 4 of this Article.

Article 10. Penalties for violations of regulations on accounting accounts

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Accounting entries that do not conform to the prescribed content of the accounting account;

b) Making modifications to the content or accounting methods of accounting accounts, or opening additional accounting accounts, which require approval from the Ministry of Finance but have not yet been approved.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of failing to properly implement the accounting chart of accounts issued or approved by the Ministry of Finance.

Article 11. Penalties for violations of regulations on the preparation and presentation of financial statements.

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Preparing financial statements that are incomplete or not in the correct format as prescribed;

b) Financial statements lacking the signatures of the preparer, chief accountant, accounting manager, or legal representative of the accounting unit.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failure to prepare complete financial reports as required;

b) Applying financial reporting formats different from those prescribed by accounting standards and regulations, except in cases approved by the Ministry of Finance.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Failure to prepare financial statements as required;

b) Preparing financial statements that do not match the figures in the accounting books and accounting documents;

c) Preparing and presenting financial statements in a manner that does not comply with accounting regulations and accounting standards.

4. A fine of VND 40.000.000 to VND 50.000.000 for one of the following acts:

a) Falsifying financial statements, providing false information in financial statements but not to the extent of incurring criminal liability;

b) Agreeing with or coercing others to falsify financial statements or provide false information in financial statements, but not to the extent of incurring criminal liability;

c) Intentionally, by agreement, or coercing others to provide or confirm false accounting information or data, but not to the extent of incurring criminal liability.

5. Remedies:

a) To compel the preparation and presentation of financial statements in accordance with accounting regulations and accounting standards for violations of the provisions of Clause 3 of this Article;

b) Mandatory destruction of falsified or fraudulent financial statements for violations of the provisions of Clause 4 of this Article.

Article 12. Penalties for violations of regulations on submission and disclosure of financial reports.

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Submitting financial reports to the competent state agency less than 03 months late compared to the prescribed deadline;

b) Publicly disclosing financial statements less than 03 months after the prescribed deadline.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Publicly disclosing financial statements that do not contain all the required information;

b) Submitting financial statements to the competent state agency without attaching an audit report in cases where the law requires financial statements to be audited;

c) Submitting financial reports to the competent state agency more than 03 months late compared to the prescribed deadline;

d) Publicly disclosing financial statements without accompanying audit reports in cases where the law requires financial statements to be audited;

d) Publicly disclosing financial statements more than 03 months late compared to the prescribed deadline.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Information and data publicly disclosed in financial reports are false;

b) Providing and publishing financial reports for use in Vietnam that contain inconsistent data within a single accounting period.

4. A fine of VND 40.000.000 to VND 50.000.000 for one of the following acts:

a) Failure to submit financial reports to the competent state authority;

b) Failure to publicly disclose financial reports as required by regulations.

5. Remedies:

The submission and public disclosure of the audit report attached to the financial statements is mandatory for violations of the regulations specified in points b and d of Clause 2 of this Article.

Article 13. Penalties for violations of regulations on photocopying and sealing accounting documents.

A fine of VND 3.000.000 to VND 5.000.000 shall be imposed for any of the following acts:

1. No council was established and no "Minutes to determine accounting documents that cannot be copied" were prepared as required.

2. Photocopies of accounting documents lack the required signatures and seals (if any) of the relevant organizations and individuals.

3. Detaining, confiscating, or sealing accounting documents without proper authorization.

4. Failure to provide accounting documents to competent state agencies for temporary seizure, confiscation, or sealing.

Article 14. Penalties for violations of regulations on accounting audits

1. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) Failing to provide the inspection team with complete accounting documents related to the inspection;

b) Failure to fully implement the conclusions of the inspection team.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Failure to comply with accounting audit decisions issued by competent authorities;

(b) Failure to provide the inspection team with accounting documents related to the inspection content;

c) Do not translate accompanying documents in foreign languages ​​into Vietnamese when requested by competent state authorities;

d) Failure to implement the conclusions of the inspection team.

Article 15. Penalties for violations of regulations on the preservation and storage of accounting documents.

1. A warning penalty will be issued for any of the following acts:

a) Submitting accounting documents to the archives 12 months or more later than the prescribed deadline;

b) Failure to organize accounting documents for archiving in chronological order of occurrence and according to the accounting year.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Incomplete storage of accounting documents as required by regulations;

b) Failure to securely store accounting documents, resulting in damage or loss of documents within the retention period;

c) Using accounting documents outside the prescribed retention period;

d) Failure to organize the inventory, classification, and recovery of lost or destroyed accounting documents.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Destroying accounting documents before the retention period stipulated by the Accounting Law has expired, but not to the extent of incurring criminal liability;

b) Failure to establish a destruction council, failure to follow proper destruction methods, and failure to create a destruction record as required when destroying accounting documents.

Article 16. Penalties for violations of regulations on asset inventory.

1. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) Failure to prepare a consolidated inventory report or the inventory report lacks the required signatures;

b) Failure to reflect the difference and the results of handling the difference between the actual inventory figures and the accounting records.

2. A fine of VND 3.000.000 to VND 5.000.000 shall be imposed for the act of failing to conduct asset inventory as prescribed.

Article 17. Penalties for violations of regulations on the organization of accounting systems, the appointment of accounting personnel, or the hiring of accounting services.

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Hiring organizations or individuals who do not meet the qualifications and conditions for practicing accounting to provide accounting services for one's own entity;

b) Failure to reappoint the chief accountant or head of accounting within the prescribed timeframe;

c) Failure to organize a handover of accounting duties when there are changes in the accounting staff, chief accountant, or accounting manager;

d) Failure to notify as required when changing the chief accountant or head of accounting.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failure to organize an accounting department within the accounting unit; failure to appoint an accountant, chief accountant, or to hire an organization or individual providing accounting services to act as an accountant or chief accountant as required by regulations;

b) Appointing an accountant who is prohibited by law from performing accounting duties;

c) Appointing accountants, chief accountants, or accounting managers who do not meet the required qualifications and conditions;

d) Appointing the chief accountant or person in charge of accounting without following the prescribed procedures.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Assigning a person responsible for managing and operating the accounting unit to also act as accountant, warehouse manager, cashier, or in the buying and selling of assets, except for private enterprises, limited liability companies owned by a single individual, enterprises of other types without state capital, and micro-enterprises as defined by the law on supporting small and medium-sized enterprises;

b) Appointing a chief accountant who does not meet the prescribed qualifications and conditions;

c) Hiring a chief accountant who does not meet the required qualifications and conditions.

4. Remedies:

Appoint or hire qualified accountants, chief accountants, or accounting managers in accordance with regulations for the cases specified in points a and b of clause 1; points b and c of clause 2; and points b and c of clause 3 of this Article.

Article 18. Penalties for violations in the organization of training and issuance of Chief Accountant Training Certificates

1. A warning penalty will be issued for any of the following acts:

a) Organizing a training course for chief accountants with a class size that does not comply with regulations;

b) Organizing a training course for chief accountants that lasts longer than 6 months.

2. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) Organizing a training course for chief accountants without registering with the Ministry of Finance, or having registered but not yet received approval from the Ministry of Finance;

b) Failure to notify or report to the Ministry of Finance regarding course-related matters as required.

3. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Failure to ensure the content, curriculum, and duration of study for students as prescribed;

b) Failure to maintain complete course-related records as required.

4. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on training institutions that commit any of the following acts:

a) Open a training course for chief accountants when they do not meet the eligibility requirements;

b) Opening a chief accountant training course for foreigners without the approval of the Ministry of Finance;

c) The training institution's management of blank forms and issuance of Chief Accountant Training Certificates does not comply with the regulations of the Ministry of Finance.

5. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on training institutions that issue Chief Accountant Training Certificates to trainees who do not meet the required standards and conditions.

6. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts violating the provisions of points a and b of clause 4 and clause 5 of this Article.

Section 2. VIOLATIONS OF REGULATIONS CONCERNING ACCOUNTANT CERTIFICATION EXAMINATIONS AND KNOWLEDGE UPDATES FOR PRACTICING ACCOUNTANTS AND PERSONS REGISTERED TO PRACTICE ACCOUNTING SERVICES

Article 19. Penalties for violations of regulations regarding application documents for the Certified Public Accountant (CPA) examination.

1. A warning penalty will be issued to individuals who provide inaccurate information in their application for the Certified Public Accountant (CPA) certification exam.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of providing inaccurate confirmation of documents in the application file to qualify for the Certified Public Accountant (CPA) examination.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of altering, forging, or falsifying qualifications, certificates, and other documents in the application file to qualify for the Certified Public Accountant (CPA) examination.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 20. Penalties for violations of regulations on updating knowledge for practicing accountants and those registered to practice accounting services.

1. A warning penalty shall be issued to organizations approved by the Ministry of Finance to organize refresher courses for practicing accountants and those registered to practice accounting services who commit any of the following acts:

a) Organizing refresher courses with an excessive number of students per class;

b) No certificates will be issued to trainees who have participated in knowledge updating courses, and no confirmation letters will be issued to accountants and auditors who have participated in teaching knowledge updating courses after each course;

c) Submitting the report on the results of the accounting staff knowledge update training course after each course less than 15 days later than the prescribed deadline;

d) Notify the Ministry of Finance of the plan and program for updating knowledge for the following year, or any changes to the plan and program for updating knowledge, at least 15 days before organizing the training course.

d) Submitting the annual summary report on the results of organizing accounting staff knowledge update courses less than 15 days late compared to the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on organizations approved to provide continuing education for practicing accountants and registered accounting service providers for committing any of the following acts:

a) Organizing knowledge updates for practicing accountants and those registered to practice accounting services that do not conform to the registered plan or program or have been notified to the Ministry of Finance;

b) Submit the annual report on the results of organizing refresher courses for accountants to the Ministry of Finance after each course if it is 15 days or more later than the prescribed deadline;

c) Submitting the annual summary report on the results of organizing knowledge update courses for accountants more than 15 days late compared to the prescribed deadline;

d) Failure to maintain complete records of the knowledge-updating organization as required.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on organizations approved to provide continuing education for practicing accountants and registered accounting service providers for committing any of the following acts:

a) Failure to submit the Report on the Results of the Accounting Staff Knowledge Update Training Course after each course as required;

b) Failure to submit the annual Summary Report on the Results of the Accounting Staff Knowledge Update Training Course as required;

c) Conducting knowledge updates to count knowledge update hours for practicing accountants and those registered to practice accounting services without prior approval from the Ministry of Finance;

d) Issuing certificates of participation in continuing education for practicing accountants and those registered to practice accounting services who do not actually participate in continuing education;

d) Inaccurate reporting of the number of participants in continuing education courses or inaccurate reporting of the number of continuing education hours for practicing accountants or those registered to practice accounting services;

e) In reality, no refresher courses were organized, but the report stated that courses were held.

4. Additional sanctioning forms:

The organization of continuing education programs for practicing accountants shall be suspended for a period of 01 to 3 months from the date the penalty decision takes effect for organizations that commit one of the violations specified in Clause 03 of this Article from the second time onwards.

5. Remedial measures:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point c, clause 3 of this Article.

Section 3. VIOLATIONS OF REGULATIONS CONCERNING THE PRACTICE OF ACCOUNTING SERVICES

Article 21. Penalties for violations of regulations on the management and use of Accountant Certificates and Auditor Certificates

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on individuals who commit any of the following acts:

a) Erasing, altering, or modifying the content of the Accountant Certificate;

b) Allowing other organizations or individuals outside the unit where one is currently employed to rent, borrow, or use one's Accountant Certificate or Auditor Certificate to register for accounting services practice or to register for accounting services practice at a unit where one does not actually work full-time under an employment contract.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of renting, borrowing, or using an Accountant Certificate or Auditor Certificate from a person who does not work or works under an employment contract that does not guarantee full-time employment at the unit in order to register for accounting services.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of forging an Accountant Certificate.

4. Additional sanctioning forms:

a) Confiscation of infringing items for the acts specified in point a, clause 1 of this Article;

b) Revoking the Certificate of Registration for Accounting Services for a period of 03 to 06 months from the date the penalty decision takes effect for the practicing accountant who committed the violation specified in point b, clause 1 of this Article.

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point b, clause 1 of this Article.

Article 22. Penalties for violations of regulations on registration documents for accounting services.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of falsely certifying documents in the application file to qualify for a Certificate of Registration for Accounting Services.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of making false declarations to qualify for a Certificate of Registration for Accounting Services.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of falsifying or making false declarations regarding documents in the application file to qualify for a Certificate of Registration for Accounting Services.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 23. Penalties for violations of regulations on the management and use of Certificates of Registration for Accounting Services.

1. A warning penalty will be imposed for returning the Certificate of Registration for Accounting Services to the Ministry of Finance less than 15 days late compared to the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Returning the Certificate of Registration for Accounting Services to the Ministry of Finance as prescribed if the delay is 15 days or more beyond the prescribed deadline;

b) Using an expired or invalid accounting service registration certificate to perform accounting services.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Practicing accounting services without having been granted a Certificate of Registration for Accounting Services;

b) Continuing to practice accounting services even after the Certificate of Registration for Accounting Services expires or is no longer valid;

c) Failure to return the Certificate of Registration for Accounting Services to the Ministry of Finance as required.

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts that violate the provisions of Clause 3 of this Article.

Section 4. VIOLATIONS OF REGULATIONS CONCERNING ACCOUNTING SERVICES

Article 24. Penalties for violations of regulations on application dossiers for the issuance of Certificates of Eligibility to conduct accounting services.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of falsely certifying documents in the application file to qualify for a Certificate of Eligibility to conduct accounting services.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of making false declarations in the application dossier to qualify for a Certificate of Eligibility to conduct accounting services.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for fraudulent acts or falsification of documents to qualify for a Certificate of Eligibility to conduct accounting services.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 25. Penalties for violations of regulations on the management and use of Certificates of Eligibility for Accounting Services Business

1. A warning penalty will be issued to an organization for committing any of the following acts:

a) Return the Certificate of Eligibility to Conduct Accounting Services to the Ministry of Finance within 15 days of the prescribed deadline when the business is revoked or terminated;

b) Processing the re-issuance of the Certificate of Eligibility for Accounting Services less than 15 days after the prescribed deadline in cases requiring re-issuance of the Certificate as stipulated in Clause 1, Article 63 of the Accounting Law.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on organizations for committing any of the following acts:

a) Returning the Certificate of Eligibility to Conduct Accounting Services to the Ministry of Finance more than 15 days late compared to the prescribed deadline when ceasing to conduct accounting services or when the Certificate of Eligibility to Conduct Accounting Services is revoked;

b) Repairing, erasing, or altering the content of the Certificate of Eligibility for Accounting Services;

c) Failure to complete the procedures or delaying the procedures for re-issuing the Certificate of Eligibility for Accounting Services in cases where re-issuance is required according to Clause 1, Article 63 of the Accounting Law by 15 days or more compared to the prescribed deadline;

d) Renting or lending the Certificate of Eligibility to conduct accounting services.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on organizations that fail to return their Certificate of Eligibility to conduct accounting services to the Ministry of Finance upon termination of accounting services business or upon revocation of the Certificate of Eligibility to conduct accounting services business.

4. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of forging a Certificate of Eligibility to conduct accounting services.

5. Additional sanctioning forms:

Confiscation of infringing items in accordance with the provisions of point b, clause 2 of this Article.

6. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point d, clause 2 of this Article.

Article 26. Penalties for violations of regulations on accounting services business.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of making false statements about the qualifications, experience, capabilities, and service provision conditions of practicing accountants and accounting service businesses.

2. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for acts of collusion or conspiracy with clients to provide or confirm false information when providing accounting services.

Article 27. Penalties for violations of regulations on the preservation and storage of accounting service records.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of failing to preserve and store accounting service records completely and securely during use and within the retention period.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of failing to maintain accounting service records as required.

Article 28. Penalties for violations of regulations on accounting services business.

1. A fine of VND 5.000.000 to VND 10.000.000 will be imposed on businesses that do not meet the requirements to provide accounting services but fail to remove the phrase "accounting services" from their name as required by regulations.

2. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on enterprises that commit any of the following acts:

a) Providing accounting services without having been granted a Certificate of Eligibility to conduct accounting services;

b) Continuing to conduct accounting services after having temporarily suspended accounting services; been suspended from conducting accounting services; had their accounting services terminated; or had their Certificate of Eligibility to Conduct Accounting Services revoked.

3. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct accounting services shall be revoked for a period of 03 to 06 months from the date the penalty decision takes effect for enterprises that commit violations of the regulations specified in point b, clause 2 of this Article.

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation stipulated in Clause 2 of this Article.

Section 5. VIOLATIONS OF REGULATIONS ON THE PROVISION AND USE OF CROSS-BORDER ACCOUNTING SERVICES

Article 29. Penalties for violations of regulations on conditions for providing cross-border accounting services.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign accounting service businesses that falsify, erase, or alter documents to qualify for a Certificate of Eligibility to conduct cross-border accounting services in Vietnam.

2. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on foreign accounting service businesses that commit any of the following acts:

a) Providing cross-border accounting services in Vietnam without having been granted a Certificate of Eligibility to conduct cross-border accounting services in Vietnam;

b) Continuing to conduct cross-border accounting services business in Vietnam after having temporarily suspended, terminated, or had its Certificate of Eligibility to conduct cross-border accounting services business in Vietnam revoked.

3. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct cross-border accounting services in Vietnam shall be revoked for a period of 03 to 06 months from the date the penalty decision takes effect for foreign accounting service businesses that violate the provisions of point b, clause 2 of this Article.

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation stipulated in Clause 2 of this Article.

Article 30. Penalties for violations of regulations on methods of providing services across borders.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign accounting service businesses for any of the following acts:

a) Making payments or transferring funds related to cross-border accounting services in violation of Vietnam's foreign exchange management laws;

b) Failing to enter into accounting service contracts in accordance with Vietnamese law when providing cross-border accounting services in Vietnam;

c) Failure to enter into a joint venture agreement when providing cross-border accounting services in Vietnam as required by regulations.

2. A fine of between VND 20.000.000 and VND 30.000.000 shall be imposed on organizations that commit any of the following acts:

a) An accounting service business in Vietnam that forms a joint venture with a foreign business that does not meet the requirements for conducting cross-border accounting services in Vietnam when providing cross-border accounting services;

b) Foreign accounting service businesses that form a joint venture with a Vietnamese business that does not meet the requirements for providing accounting services when providing cross-border accounting services in Vietnam.

3. A fine of VND 30.000.000 to VND 40.000.000 shall be imposed on foreign accounting service businesses that fail to form a joint venture with a qualified accounting service business in Vietnam when providing cross-border accounting services in Vietnam.

4. Additional sanctioning forms:

The foreign accounting service business that violates the provisions of Clause 3 of this Article shall have its Certificate of Eligibility to conduct cross-border accounting services in Vietnam revoked for a period of 06 to 12 months from the date the penalty decision takes effect.

Article 31. Penalties for violations of obligations of foreign accounting service businesses when providing cross-border accounting services in Vietnam.

1. A warning penalty shall be imposed on foreign accounting service businesses that commit any of the following acts;

a) Notifying the Ministry of Finance less than 15 days late compared to the prescribed deadline when failing to meet one of the conditions stipulated for providing cross-border accounting services in Vietnam;

b) Submit annual financial reports and written comments and assessments from the accounting service management agency where the foreign accounting service business is headquartered regarding the implementation of legal regulations on accounting service business activities and other legal regulations to the Ministry of Finance less than 15 days after the prescribed deadline;

c) Submitting a report on the implementation of cross-border accounting service contracts arising in Vietnam to the Ministry of Finance less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on foreign accounting service businesses that commit any of the following acts:

a) Notifying the Ministry of Finance 15 days or more later than the prescribed deadline when one of the conditions stipulated for providing cross-border accounting services in Vietnam is not met;

b) Submitting annual financial reports and written comments and assessments from the accounting service management agency where the foreign accounting service business is headquartered regarding the implementation of legal regulations on accounting service business activities and other legal regulations to the Ministry of Finance more than 15 days later than the prescribed deadline;

c) Submitting incomplete reports or submitting reports on the implementation of cross-border accounting service contracts in Vietnam to the Ministry of Finance 15 days or more later than the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign accounting service businesses that commit any of the following acts:

a) Failure to notify the Ministry of Finance when one of the prescribed conditions for providing cross-border accounting services is not met;

b) Failure to submit annual financial reports, comments, and assessments from the accounting service management agency where the foreign accounting service business is headquartered regarding the implementation of legal regulations on accounting service business activities and other legal regulations to the Ministry of Finance as required;

c) Failure to report, or reporting inaccurately, on the performance of cross-border accounting service contracts in Vietnam.

4. A fine of VND 30.000.000 to VND 50.000.000 shall be imposed on foreign accounting service businesses that commit any of the following acts:

a) Performing prohibited acts or providing accounting services when falling under cases where accounting services are not permitted to be provided according to regulations;

b) Failure to comply with Vietnamese accounting standards and Vietnamese professional ethics standards for accountants when providing cross-border accounting services in Vietnam;

c) Failure to report or provide explanations to Vietnamese authorities regarding matters related to the provision of cross-border accounting services in Vietnam.

5. Additional sanctioning forms:

The foreign accounting service business that violates the provisions of Clause 4 of this Article shall have its Certificate of Eligibility to conduct cross-border accounting services in Vietnam revoked for a period of 03 to 06 months from the date the penalty decision takes effect.

Article 32. Penalties for violations of obligations of accounting service businesses when forming a joint venture with foreign accounting service businesses to provide cross-border accounting services in Vietnam.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on accounting service businesses in Vietnam for committing any of the following acts:

a) Incomplete archiving of accounting service records for joint venture contracts with foreign accounting service businesses when providing cross-border accounting services in Vietnam;

b) Failing to provide complete or timely documentation as required by competent authorities regarding joint venture contracts with foreign accounting service businesses when providing cross-border accounting services in Vietnam;

c) Failing to provide complete or timely explanations to competent authorities regarding the documentation of a joint venture contract with a foreign accounting service business to provide cross-border accounting services in Vietnam.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on accounting service businesses in Vietnam for committing any of the following acts:

a) Do not retain records related to joint venture contracts with foreign accounting service businesses to provide cross-border accounting services in Vietnam;

b) Failure to provide documents related to joint venture contracts with foreign accounting service businesses to provide cross-border accounting services in Vietnam as requested by competent authorities;

c) Failure to provide explanations to competent authorities regarding documents related to joint venture contracts with foreign accounting service businesses to provide cross-border accounting services in Vietnam;

d) Failure to report to the Ministry of Finance on the status of joint ventures with foreign accounting service businesses in providing cross-border accounting services as required.

3. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct accounting services business in Vietnam shall be revoked for a period of 01 to 03 months from the date the penalty decision takes effect, when an accounting service business in Vietnam commits one of the violations specified in Clause 2 of this Article.

Section 6. VIOLATIONS OF REGULATIONS ON NOTIFICATION AND REPORTING

Article 33. Penalties for violations of notification and reporting obligations of household businesses and accounting service businesses.

1. A warning penalty will be issued for any of the following acts:

a) Notifying the Ministry of Finance less than 15 days after the prescribed deadline when there is a change to any of the contents stipulated in Article 66 of the Accounting Law;

b) Submit the annual consolidated report on the maintenance of professional qualifications for accounting services by practicing accountants at their unit to the Ministry of Finance less than 15 days after the prescribed deadline;

c) Notify the Ministry of Finance in writing at least 15 days later than the prescribed deadline when the Certificate of Registration for Accounting Services of the practicing accountant at the unit expires or is no longer valid according to regulations;

d) Submitting the annual report on maintaining the conditions for conducting accounting services less than 15 days late compared to the deadline stipulated by the Ministry of Finance;

d) Submitting the annual operational report to the Ministry of Finance less than 15 days late compared to the prescribed deadline;

e) Notifying the Ministry of Finance in writing less than 15 days after the prescribed deadline when resuming operations after a period of temporary suspension of accounting services;

g) Notifying the Ministry of Finance of the termination of accounting services business less than 15 days after the prescribed deadline;

h) Submitting periodic and ad hoc reports as required by the Ministry of Finance less than 15 days late compared to the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Notifying the Ministry of Finance 15 days or more later than the prescribed deadline when there are changes to any of the contents stipulated in Article 66 of the Accounting Law;

b) Submitting the annual consolidated report on the maintenance of professional qualifications for accounting services by practicing accountants at their unit to the Ministry of Finance more than 15 days late compared to the prescribed deadline;

c) Notify the Ministry of Finance in writing at least 15 days later than the prescribed deadline when the Certificate of Registration for Accounting Services of the practicing accountant at the unit expires or is no longer valid according to regulations;

d) Submitting the Report on the maintenance of business conditions for accounting services to the Ministry of Finance annually more than 15 days late compared to the prescribed deadline;

d) Submitting the annual activity report to the Ministry of Finance 15 days or more later than the prescribed deadline;

e) Notifying the Ministry of Finance in writing 15 days or more later than the prescribed deadline when resuming operations after a period of temporary suspension of accounting services;

g) Notifying the Ministry of Finance of the termination of accounting services business more than 15 days late compared to the prescribed deadline;

h) Submitting periodic and ad hoc reports as required by the Ministry of Finance 15 days or more later than the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failure to notify the Ministry of Finance of any changes to the provisions stipulated in Article 66 of the Accounting Law;

b) Failure to submit the annual consolidated report on the maintenance of professional qualifications for accounting services by practicing accountants at their unit to the Ministry of Finance as required;

c) Failure to notify the Ministry of Finance in writing when the Certificate of Registration for Accounting Services of the practicing accountant at the unit expires or is no longer valid as prescribed;

d) Failure to submit the annual Report on Maintaining the Conditions for Conducting Accounting Services to the Ministry of Finance as required;

d) Failure to submit the Annual Activity Report to the Ministry of Finance as required;

e) Failure to notify the Ministry of Finance in writing as required upon resuming operations after a period of temporary suspension of accounting services;

g) Failure to notify the Ministry of Finance of the termination of accounting services business as required;

h) Failure to submit regular and ad hoc reports as required by the Ministry of Finance.

Article 34. Penalties for violations of regulations on notification and reporting obligations of practicing accountants.

1. A warning penalty shall be issued to practicing accountants who notify or report to the Ministry of Finance less than 15 days late compared to the prescribed deadline when:

a) No longer working at the accounting service business entity listed on the Certificate of Registration for Accounting Services;

b) The full-time employment contract at the accounting service business unit has expired, been terminated, or has undergone changes that render it no longer a full-time employment contract as stipulated;

c) The work permit in Vietnam of the foreign practicing accountant has expired or is invalid;

d) Participating as chief accountant or head of accounting, accounting staff, internal auditor, or other positions at units or organizations other than the accounting service business unit where one is registered to practice;

d) The accounting service business unit where the practicing accountant is registered is divided, separated, merged, acquired, ceases operation, is dissolved, or goes bankrupt;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the accounting service activities of practicing accountants.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on practicing accountants who notify the Ministry of Finance 15 days or more late compared to the prescribed deadline when:

a) No longer working at the accounting service business entity listed on the Certificate of Registration for Accounting Services;

b) The full-time employment contract at the accounting service business unit has expired, been terminated, or has undergone changes that render it no longer a full-time employment contract as stipulated;

c) The work permit in Vietnam of the foreign practicing accountant has expired or been invalidated;

d) Participating as chief accountant or head of accounting, accounting staff, internal auditor, or other positions at units or organizations other than the accounting service business unit where one is registered to practice;

d) The accounting service business unit where the practicing accountant is registered is divided, separated, merged, acquired, ceases operation, is dissolved, or goes bankrupt;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the accounting service activities of practicing accountants.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on practicing accountants who fail to notify or report to the Ministry of Finance as required when:

a) No longer working at the accounting service business entity listed on the Certificate of Registration for Accounting Services;

b) The full-time employment contract at the accounting service business unit has expired, been terminated, or has undergone changes that render it no longer a full-time employment contract as stipulated;

c) The work permit in Vietnam of the foreign practicing accountant has expired or been invalidated;

d) Participating as chief accountant or head of accounting, accounting staff, internal auditor, or other positions at units or organizations other than the accounting service business unit where one is registered to practice;

d) The accounting service business unit where the practicing accountant is registered is divided, separated, merged, acquired, ceases operation, is dissolved, or goes bankrupt;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the accounting service activities of practicing accountants.

Section 7. VIOLATIONS OF REGULATIONS ON AUDITING ACCOUNTING SERVICES

Article 35. Penalties for violations of regulations on inspection of accounting services.

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failing to provide information and documents within the prescribed timeframe, or providing incomplete information as required by competent authorities or organizations during the inspection of accounting services;

b) Providing inaccurate information or documents to competent authorities or organizations during the inspection of accounting services.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Failure to provide information and documents as requested by competent authorities or organizations during the inspection of accounting services;

b) Failure to provide explanations or cooperate with competent authorities and organizations during the inspection of accounting services.

3. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct accounting services business in Vietnam shall be revoked for a period of 01 to 03 months from the date the penalty decision takes effect, when an accounting service business in Vietnam commits one of the violations specified in Clause 2 of this Article.

Chapter III

FORMS AND LEVELS OF PENALTIES IN THE FIELD OF INDEPENDENT AUDITING

Section 1. VIOLATIONS OF REGULATIONS REGARDING CERTIFICATION EXAMINATIONS AND KNOWLEDGE UPDATES FOR AUDITORS

Article 36. Penalties for violations of regulations regarding application documents for the Auditor Certification Examination

1. A warning penalty will be issued to individuals who provide inaccurate information in their application for the Certified Auditor examination.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of providing inaccurate confirmation of documents in the application file to qualify for the Auditor Certification examination.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of altering, forging, or falsifying qualifications, certificates, and other documents in the application file to qualify for the Auditor Certification examination.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 37. Penalties for violations of regulations on updating knowledge for auditors.

1. A warning penalty shall be issued to organizations approved by the Ministry of Finance to organize refresher courses for practicing auditors and those registered to practice auditing when they commit any of the following acts:

a) Submit the report on the results of the auditor refresher training courses to the Ministry of Finance after each course no later than 15 days after the prescribed deadline;

b) No monitoring or attendance taking for students participating in refresher courses;

c) Failure to collect feedback from trainees on the Auditor Knowledge Update Course Evaluation Form;

d) No certificates will be issued to trainees who have participated in knowledge updating courses, and no confirmation letters will be issued to auditors who have participated in teaching knowledge updating courses after each course;

d) Organizing refresher courses with a class size exceeding the prescribed limit;

e) Notify the Ministry of Finance of the content, program, time, and location of the training course, details of the lecturers, and the number of practicing auditors registered to attend before organizing the course, or notify the Ministry of Finance of any changes to the above content at least 15 days later than the prescribed deadline;

g) Submit the consolidated report on the results of organizing auditor refresher courses to the Ministry of Finance annually at least 15 days later than the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on organizations approved by the Ministry of Finance to organize refresher courses for practicing auditors and those registered to practice auditing when committing any of the following acts:

a) Organizing knowledge update courses for auditors that do not conform to the content and program registered with the Ministry of Finance;

b) Submit the report on the results of the auditor refresher training course to the Ministry of Finance after each course if it is 15 days or more later than the prescribed deadline;

c) Notify the Ministry of Finance about the content, program, time, location of the training course, details of the lecturers, and the number of practicing auditors registered to attend the course at least 15 days before the course starts; or notify the Ministry of Finance of any changes to the above contents at least 15 days before the deadline;

d) Submitting the Summary Report on the Results of the Auditor Knowledge Update Training Course 15 days or more late compared to the prescribed deadline;

d) Making false declarations, falsifying documents, or providing fraudulent information to obtain approval for organizing knowledge update courses for auditors;

e) Failure to maintain complete records regarding organizations that provide auditor training as required.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on organizations approved by the Ministry of Finance to organize refresher courses for practicing auditors and those registered to practice auditing when committing any of the following acts:

a) Failure to submit the Report on the Results of the Auditor Knowledge Update Training Course to the Ministry of Finance after each course;

b) Failure to notify the Ministry of Finance about the content, program, time, location of the training course, details of the lecturers, and the number of practicing auditors registered to attend before organizing the course; or failure to notify the Ministry of Finance when there are changes to the above contents as required;

c) Failure to submit the Summary Report on the Results of the Auditor Knowledge Update Training Course;

d) Conducting knowledge updates to count knowledge update hours for practicing auditors and those registered to practice auditing without prior approval from the Ministry of Finance;

d) Incorrect reporting of the number of participants in continuing education or incorrect reporting of auditors' continuing education hours;

e) Not organizing a class but reporting that a class was organized;

g) Issue certificates of participation in knowledge updating to trainees who did not actually participate in the knowledge updating.

4. Additional sanctioning forms:

The organization of auditor training courses shall be suspended for a period of 01 to 3 months from the date the penalty decision takes effect for organizations that commit one of the violations specified in points d, e, f, and g of Clause 03 of this Article from the second time onwards (if at the time the violation is discovered, the organization was approved by the Ministry of Finance to organize auditor training courses).

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point d, clause 3 of this Article.

Section 2. VIOLATIONS OF REGULATIONS ON AUDITING PRACTICE REGISTRATION

Article 38. Penalties for violations of regulations on the management and use of Auditor Certificates

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on individuals who commit any of the following acts:

a) Erasing, altering, or modifying the content of the Auditor's Certificate;

b) Allowing other organizations or individuals outside the unit where one is currently employed to rent, borrow, or use one's auditor's certificate to register for auditing practice or to register for auditing practice at a unit where one does not actually work under a full-time employment contract.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on enterprises that rent, borrow, or use auditor certificates from individuals who do not work or whose employment contracts do not guarantee full-time work at the enterprise in order to register for auditing practice.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of forging an Auditor's Certificate.

4. Additional sanctioning forms:

a) Confiscation of infringing items for the acts specified in point a of clause 1 and clause 3 of this Article;

b) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for the practicing auditor who commits the act specified in point b, clause 1 of this Article.

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point b, clause 1 of this Article.

Article 39. Penalties for violations of regulations concerning the registration dossier for auditing practice of auditors.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of falsely certifying information and documents in the application file to qualify for a Certificate of Registration for Auditing Practice.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of making false declarations in the application dossier to qualify for a Certificate of Registration for Auditing Practice.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of falsifying or making false declarations regarding documents in the application file to qualify for a Certificate of Registration for Auditing Practice.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 40. Penalties for violations of regulations on the management and use of Certificates of Registration for Auditing Practice.

1. A warning penalty will be issued for returning the Certificate of Registration for Auditing Practice to the Ministry of Finance less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Returning the Certificate of Registration for Auditing Practice to the Ministry of Finance 15 days or more later than the prescribed deadline;

b) Using an expired or invalid Certificate of Registration for Auditing Practice to perform independent accounting and auditing professional activities.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of failing to return the Certificate of Registration for Auditing Practice to the Ministry of Finance as prescribed.

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the acts specified in point b, clause 2 of this Article.

Section 3. VIOLATIONS OF REGULATIONS ON CONDITIONS FOR AUDITING SERVICES AND AUDITING SERVICE BUSINESS

Article 41. Penalties for violations of regulations on application dossiers for the issuance of Certificates of Eligibility to conduct auditing services.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of certifying inaccurate documents in the application file to qualify for a Certificate of Eligibility to conduct auditing services.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for the act of making false declarations in the application dossier to qualify for a Certificate of Eligibility to conduct auditing services.

3. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for acts of fraud or falsification of documents to qualify for a Certificate of Eligibility to conduct auditing services.

4. Additional sanctioning forms:

Confiscation of evidence of violations in accordance with Clause 3 of this Article.

Article 42. Penalties for violations of regulations on the management and use of Certificates of Eligibility for Auditing Services.

1. A warning penalty will be issued to businesses that commit any of the following acts:

a) Return the Certificate of Eligibility for Auditing Services to the Ministry of Finance less than 15 days after the deadline for revocation;

b) Processing the renewal of the Certificate of Eligibility for Auditing Services less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on enterprises that commit any of the following acts:

a) Returning the Certificate of Eligibility for Auditing Services to the Ministry of Finance more than 15 days after the prescribed deadline when it is revoked;

b) Failure to amend the Certificate of Eligibility for Auditing Services when changes requiring amendment occur as stipulated by regulations;

c) Failure to complete the procedures or delaying the procedures for re-issuing the Certificate of Eligibility to conduct auditing services by 15 days or more compared to the prescribed deadline;

d) Repairing, erasing, or altering the content of the Certificate of Eligibility for Auditing Services;

d) Renting or lending the Certificate of Eligibility to conduct auditing services.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on enterprises that fail to return their Certificate of Eligibility to Conduct Auditing Services to the Ministry of Finance upon revocation.

4. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of forging a Certificate of Eligibility to conduct auditing services.

5. Additional sanctioning forms:

Confiscation of infringing items for the acts specified in point d, clause 2 and clause 4 of this Article.

6. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation specified in point d, clause 2 of this Article.

Article 43. Penalties for violations of regulations on auditing services business by auditing firms.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on businesses that do not meet the requirements for conducting auditing services but use the term "auditing" in their name.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on enterprises that have not been granted a Certificate of Eligibility to conduct auditing services but have failed to carry out the procedures for removing the auditing services business line as prescribed.

3. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on enterprises that commit any of the following acts:

a) Providing auditing services without having been granted a Certificate of Eligibility to conduct auditing services;

b) Continuing to conduct business in the services stipulated in Clause 1, Article 40 of the Law on Independent Auditing after having temporarily suspended or been suspended from conducting auditing services;

c) Continuing to conduct business in the services prescribed in Clause 1, Article 40 of the Law on Independent Auditing after the termination of the auditing service business or the revocation of the Certificate of Eligibility to Conduct Auditing Services.

4. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct auditing services shall be revoked for a period of 3 to 03 months from the date the penalty decision takes effect for the enterprise committing the act specified in Clause 06 of this Article (if at the time the violation is discovered the enterprise is an auditing firm).

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation stipulated in Clause 3 of this Article.

Section 4. VIOLATIONS OF REGULATIONS ON AUDIT ACTIVITIES

Article 44. Penalties for violations of regulations on purchasing professional liability insurance for practicing auditors or establishing a professional risk reserve fund.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that purchase professional liability insurance for practicing auditors or establish professional risk reserve funds in violation of the regulations of the Ministry of Finance.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that fail to purchase professional liability insurance for practicing auditors or establish a professional risk reserve fund.

Article 45. Penalties for violations of regulations on acceptance of audit performance.

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Conducting audits for clients without ensuring independence, lacking sufficient professional competence, or failing to meet the requirements stipulated by law;

b) Conducting audits for clients when the client or audited entity makes requests that are contrary to professional ethics, professional requirements, or legal regulations.

2. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing the violation stipulated in Clause 1 of this Article.

Article 46. Penalties for violations of regulations on audit contracts

1. A warning penalty will be issued to auditing firms that enter into audit contracts with clients or audited entities that do not include all the required contents.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that enter into audit contracts with clients or audited entities after the audit has been completed.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that fail to enter into an audit contract with the client or audited entity when conducting the audit.

Article 47. Penalties for violations of security regulations

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for disclosing information related to audit files, clients, or audited entities, except with the consent of the client or audited entity or as stipulated by law.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that fail to establish and operate an internal control system to ensure the fulfillment of confidentiality obligations.

3. A fine of VND 30.000.000 to VND 40.000.000 shall be imposed for the act of using information related to audit files, clients, or audited entities to infringe upon the interests of the State, public interests, or the legitimate rights and interests of agencies, organizations, or individuals.

4. Additional sanctioning forms:

a) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for practicing auditors who commit the acts specified in Clause 3 of this Article;

b) Revoking the Certificate of Eligibility to conduct auditing services for a period of 06 to 12 months from the date the penalty decision takes effect for the auditing firm that commits the act specified in Clause 3 of this Article.

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts violating the provisions of Clauses 1 and 3 of this Article.

Article 48. Penalties for violations of regulations on audit reports.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditors who commit any of the following acts:

a) Signing audit reports without proper authority as prescribed by regulations;

b) Sign the audit report before signing the audited financial statements.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditors who commit any of the following acts:

a) Signing audit reports when not being a practicing auditor;

b) Signing audit reports for the same audited entity for more than three consecutive years.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Assigning practicing auditors to sign audit reports without proper authority as prescribed by regulations;

b) Issuing an audit report where the date of signing the audit report is before the date of signing the financial statements;

c) Preparing an audit report without the full signatures of the practicing auditors as required by regulations;

d) Failure to provide complete or timely explanations regarding the exceptions in the audit report as requested by the competent authority or the representative of the owner of the audited entity.

4. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the failure to provide explanations regarding exceptions in the audit report as requested by the competent authority or the representative of the owner of the audited entity.

5. A fine of VND 20.000.000 to VND 40.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Appointing someone other than a practicing auditor to sign the audit report;

b) Assigning a practicing auditor to sign audit reports for the same audited entity for more than three consecutive years.

6. Additional sanctioning forms:

a) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for auditors who commit one of the acts specified in point a, clause 2 of this Article (if the auditor was a practicing auditor at the time the violation was discovered);

b) Revoking the Certificate of Eligibility to Conduct Auditing Services for a period of 06 to 12 months from the date the penalty decision takes effect for auditing firms that commit the act specified in point a, clause 5 of this Article from the second time onwards.

Article 49. Penalties for violations of regulations on independence.

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Providing false information or making false claims about the qualifications, experience, and service capabilities of practicing auditors and auditing firms, including branches of foreign auditing firms in Vietnam;

b) Purchasing, receiving, gifting, or holding shares or capital contributions of the audited entity, regardless of the quantity;

c) Buying or selling bonds or other assets of the audited entity that affect its independence as stipulated by the professional code of ethics for accounting and auditing;

d) Receiving or demanding any money or other benefits from the audited entity in addition to the service fees and expenses agreed upon in the concluded contract;

d) Harassing or deceiving clients or audited entities;

e) Interfering with the business operations of the client or audited entity during the audit process;

g) Collect debts for the audited entity.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Colluding or conspiring with the audited entity to falsify accounting documents, financial statements, audit records, and report false audit results;

b) Falsifying or misrepresenting audit records;

c) Conducting an audit when one of the cases where auditing is prohibited by law;

d) Practicing auditing as an individual;

d) Working for two or more auditing firms or branches of foreign auditing firms in Vietnam at the same time;

e) Contributing capital to two or more auditing firms.

3. Additional forms of punishment

Revoking the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for practicing auditors who commit violations of the regulations specified in points d, e, and f of Clause 2 of this Article;

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts that violate the provisions of points a, b, and c of Clause 2 of this Article.

Article 50. Penalties for violations of regulations on preparing audit documents.

1. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed for the act of failing to prepare audit documentation for an audit.

2. Additional sanctioning forms:

a) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for practicing auditors who commit the acts specified in Clause 1 of this Article;

b) Revoking the Certificate of Eligibility to conduct auditing services for a period of 06 to 12 months from the date the penalty decision takes effect for the auditing firm that commits the act specified in Clause 1 of this Article.

Article 51. Penalties for violations of regulations on the preservation and storage of audit records.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to properly and securely preserve and store audit records, resulting in damage or loss of audit records during use and within the retention period;

b) Submitting audit files to the archives more than 12 months after the date of issuance of the audit report of the audit;

c) Failure to design and implement policies and procedures to maintain the confidentiality, security, integrity, accessibility, and recoverability of audit records as required by auditing standards;

d) Failure to design and implement policies and procedures for archiving audit records for a minimum of 10 years from the date of issuance of the audit report of the audit as required by auditing standards.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that fail to maintain audit records in paper or electronic format.

Article 52. Penalties for violations of regulations on the destruction of audit records.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) The decision to destroy audit records was made without proper authority;

b) Destroying audit records without establishing a destruction committee, without following the correct destruction methods and procedures, without creating a list of audit records to be destroyed, and without preparing a destruction record for audit records that have exceeded the prescribed retention period.

2. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on auditing firms that destroy audit files before the prescribed retention period has expired or intentionally damage audit files.

Section 5. VIOLATIONS OF REGULATIONS CONCERNING AUDITED ENTITIES

Article 53. Penalties for violations of regulations on the selection of auditing firms and practicing auditors to perform audits.

1. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on entities that hire auditing firms in cases where the auditing firm is not permitted to conduct audits in accordance with legal regulations.

2. A fine of VND 30.000.000 to VND 40.000.000 shall be imposed on entities that hire auditing firms that do not meet the legal requirements for providing auditing services.

3. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on audited entities that fail to conduct mandatory audits of financial statements, project completion reports, consolidated financial statements, aggregated financial statements, and other audit work as prescribed by the law on independent auditing and other relevant laws.

Article 54. Penalties for violations of regulations on concluding contracts for auditing annual financial statements.

1. A warning penalty will be issued to businesses and organizations that are required to have their annual financial statements audited but enter into audit contracts that do not fully comply with regulations.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on enterprises and organizations that are required to have their annual financial statements audited but enter into a financial statement audit contract later than the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on enterprises and organizations that are required to have their annual financial statements audited but enter into an audit contract after the audit has been completed.

4. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on enterprises and organizations that are required to have their annual financial statements audited but fail to enter into an audit contract when conducting the audit.

Article 55. Penalties for violations of regulations related to audits

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on audited entities that fail to provide explanations or provide incomplete explanations within the prescribed time frame regarding the exceptions in the audit report as requested by the competent authority.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Refusing to provide information and documents necessary for the audit as requested by the practicing auditor or audit firm;

b) Bribery, corruption, or collusion with members of the audit team and the audit firm to falsify accounting documents, financial statements, audit records, and audit reports;

c) Threatening, retaliating against, or coercing audit participants to falsify audit results;

d) Concealing violations of financial and accounting laws;

d) Obstructing the work and engaging in conduct that restricts the scope of the audit.

3. Remedies:

Mandatory correction of false or misleading information regarding violations of regulations specified in points b and c of Clause 2 of this Article.

Section 6. VIOLATIONS OF REGULATIONS CONCERNING AUDIT OF FINANCIAL STATEMENTS OF PUBLIC INTEREST ENTITIES

Article 56. Penalties for violations of regulations on notification and reporting obligations of approved auditing firms.

1. A warning penalty shall be issued to audit firms that are approved to report to the competent authority any changes to their name, headquarters, scope of practice, list of practicing auditors, and other changes that render them ineligible for audit approval less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on audit firms that, after being approved, fail to report to the competent authority when changing their name, headquarters, scope of practice, list of practicing auditors, and other changes that render them ineligible for audit approval, by 15 days or more beyond the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on approved auditing firms that fail to report to the competent authority when changing their name, headquarters, scope of practice, list of practicing auditors, and other changes that render them ineligible for auditing approval.

Article 57. Penalties for violations of regulations on providing audit or review services to entities with public interest.

1. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on practicing auditors who conduct audits, audit reports, or review reports for public interest entities without the approval of the Ministry of Finance, or when their approved status has been suspended or revoked.

2. A fine of VND 30.000.000 to VND 40.000.000 for one of the following acts:

a) An auditing firm shall conduct an audit for a public interest entity when it falls under one of the cases where it is not permitted to audit public interest entities;

b) A public interest entity selects an auditing firm to provide audit or review services when that auditing firm has not yet been approved by the Ministry of Finance;

c) The public interest entity may choose an auditing firm to provide audit or review services, or continue to perform the audit or review contract already signed with that auditing firm in the event that the auditing firm's approved auditing status is suspended or revoked.

3. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on auditing firms that provide auditing or review services to public interest entities without the approval of the Ministry of Finance, or when their approved auditing status has been suspended or revoked.

4. Additional sanctioning forms:

a) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for practicing auditors who commit the acts specified in Clause 1 of this Article;

b) Revoking the Certificate of Eligibility to conduct auditing services for a period of 3 to 03 months from the date the penalty decision takes effect for enterprises committing the acts specified in Clause 06 of this Article from the second time onwards.

5. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts violating the provisions of Clause 1, Point a of Clause 2, and Clause 3 of this Article.

Article 58. Penalties for violations of regulations on transparent information disclosure and reporting.

1. A warning penalty shall be issued to auditing firms that commit any of the following acts:

a) The transparency report, when published, lacks the signature of the legal representative of the auditing firm or their authorized representative;

b) Disclosing information in transparency reports or updating changes in information less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that violate the regulations on disclosing and updating information in transparency reports on their websites by 15 days or more behind the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to establish a website as required;

b) Failure to publish and fully update information in the transparency report on the website;

c) Disclosing false information in transparency reports.

4. Remedies:

Mandatory correction of false information regarding violations of the regulations specified in point c, clause 3 of this Article.

Article 59. Penalties for violations regarding registration documents for public interest entities to participate in audits.

1. A warning penalty shall be issued to auditing firms that commit any of the following acts:

a) The transparency report, when published, lacks the signature of the legal representative of the auditing firm or their authorized representative;

b) Disclosing information in transparency reports or updating changes in information less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that violate the regulations on disclosing and updating information in transparency reports on their websites by 15 days or more behind the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to establish a website as required;

b) Failure to publish and fully update information in the transparency report on the website;

c) Disclosing false information in transparency reports.

4. Remedies:

Mandatory correction of false information regarding violations of the regulations specified in point c, clause 3 of this Article.

Article 60. Penalties for violations of regulations relating to the responsibilities of entities with public interest.

A fine of between VND 10.000.000 and VND 20.000.000 shall be imposed on any entity with public interest that commits any of the following acts:

1. Failure to establish and operate an internal control system.

2. Failure to conduct internal audits as required by law.

3. Choosing a different approved auditing firm to provide an opinion on financial statements when those financial statements have already been audited by an approved auditing firm, except as permitted by law.

4. Failure to report to the competent authority that approved the auditing firm to perform the audit for their unit the reason for changing the approved auditing firm compared to the previous year and the reason for changing the approved auditing firm currently performing the audit (if any).

5. Failing to notify the competent authority that approved the auditing firm to conduct the audit for their entity when they discover that the practicing auditor and the approved auditing firm have violated the law on independent auditing.

6. Providing false information or data related to audited financial statements as requested by competent authorities.

7. Failure to provide explanations or information related to audited financial statements as requested by competent authorities.

Article 61. Penalties for violations of regulations on independence.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on the following act: having conducted an audit of a public interest entity and now holding a management, executive, supervisory board member, or chief accountant position within that public interest entity, if the time elapsed between the completion of the audit and the date of assuming these positions is less than twelve months.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed for conducting audits for entities with public interest for more than four consecutive fiscal years.

3. A fine of VND 20.000.000 to VND 40.000.000 for one of the following acts:

a) A public interest entity that has approved a practicing auditor to perform audits of financial statements for more than four consecutive fiscal years;

b) An auditing firm assigns practicing auditors to audit the financial statements of a public interest entity for more than four consecutive fiscal years.

4. Additional sanctioning forms:

a) Revocation of the Certificate of Registration for Auditing Practice for a period of 03 to 06 months from the date the disciplinary decision takes effect for practicing auditors who commit the acts specified in Clause 2 of this Article;

b) Revoking the Certificate of Eligibility to Conduct Auditing Services for a period of 3 to 03 months for enterprises that commit the acts specified in point b, clause 06 of this Article from the second time onwards.

Section 7. VIOLATIONS OF REGULATIONS ON THE PROVISION AND USE OF CROSS-BORDER AUDIT SERVICES

Article 62. Penalties for violations of regulations on conditions for providing cross-border auditing services.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign auditing businesses that erase or alter documents to qualify for a Certificate of Eligibility to conduct cross-border auditing services in Vietnam.

2. A fine of VND 40.000.000 to VND 50.000.000 shall be imposed on foreign auditing firms that commit any of the following acts:

a) Falsifying documents when applying for registration to provide cross-border auditing services;

b) Providing cross-border auditing services in Vietnam without having been granted a Certificate of Eligibility to conduct cross-border auditing services in Vietnam;

c) Continuing to conduct cross-border auditing services in Vietnam after having temporarily suspended, terminated, or had its Certificate of Eligibility to conduct cross-border auditing services in Vietnam revoked.

3. Additional sanctioning forms:

The foreign auditing firm that commits one of the acts specified in points b and c of Clause 2 of this Article shall have its Certificate of Eligibility to conduct cross-border auditing services in Vietnam revoked for a period of 03 to 06 months from the date the penalty decision takes effect.

4. Remedies:

The offender shall be compelled to return any illegal profits obtained from committing acts that violate the provisions of points b and c, clause 2 of this Article.

Article 63. Penalties for violations of regulations on methods of providing services across borders.

1. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign auditing firms that commit any of the following acts:

a) Payments and transfers related to the provision of cross-border auditing services that are not in accordance with Vietnam's foreign exchange management laws;

b) Failing to enter into audit contracts in accordance with Vietnamese law when providing cross-border audit services;

c) Failure to enter into a joint venture agreement when providing cross-border auditing services as required by regulations.

2. A fine of between VND 20.000.000 and VND 30.000.000 shall be imposed on organizations that commit any of the following acts:

a) An auditing firm in Vietnam that forms a joint venture with a foreign firm that does not meet the requirements for conducting cross-border auditing services as stipulated by regulations when providing cross-border auditing services in Vietnam;

b) Foreign auditing firms that form joint ventures with Vietnamese businesses that do not meet the requirements for conducting auditing services when providing cross-border auditing services in Vietnam.

3. A fine of VND 30.000.000 to VND 40.000.000 shall be imposed on foreign auditing firms that fail to form a joint venture with a qualified auditing firm when providing cross-border auditing services in Vietnam.

4. Additional sanctioning forms:

The foreign auditing firm that commits the violation of Clause 3 of this Article shall have its Certificate of Eligibility to conduct cross-border auditing services in Vietnam revoked for a period of 06 to 12 months from the date the penalty decision takes effect.

Article 64. Penalties for violations of obligations of enterprises providing cross-border auditing services.

1. A warning penalty shall be issued to foreign auditing firms that commit any of the following acts:

a) Notifying the Ministry of Finance less than 15 days late compared to the prescribed deadline when one of the conditions stipulated for providing cross-border audit services is not met;

b) Submit the audited annual financial statements, along with the audit report from the independent auditing firm and the comments from the auditing practice management agency where the firm is headquartered regarding the implementation of legal regulations on auditing activities and other legal regulations, to the Ministry of Finance less than 15 days after the prescribed deadline;

c) Submitting a report on the implementation status of cross-border audit service contracts arising in Vietnam to the Ministry of Finance less than 15 days after the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on foreign auditing firms that commit any of the following acts:

a) Notifying the Ministry of Finance 15 days or more later than the prescribed deadline when one of the conditions stipulated for providing cross-border audit services is not met;

b) Submitting audited annual financial statements, along with the audit report from an independent auditing firm and comments from the auditing practice management agency where the firm is headquartered, regarding the implementation of legal regulations on auditing activities and other legal regulations to the Ministry of Finance more than 15 days later than the prescribed deadline;

c) Submitting incomplete reports or submitting reports on the implementation of cross-border audit service contracts arising in Vietnam to the Ministry of Finance 15 days or more later than the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on foreign auditing firms that commit any of the following acts:

a) Failure to notify the Ministry of Finance when one of the conditions stipulated for providing cross-border audit services is not met;

b) Failure to submit audited annual financial statements accompanied by the audit report from an independent auditing firm, and written comments from the auditing practice management agency where the enterprise is headquartered regarding the implementation of legal regulations on auditing activities and other legal regulations to the Ministry of Finance as required;

c) Failure to report, or inaccurate reporting, on the performance of cross-border audit service contracts arising in Vietnam.

4. A fine of VND 30.000.000 to VND 50.000.000 shall be imposed on foreign auditing firms that commit any of the following acts:

a) Performing prohibited acts or providing audit services when falling under the circumstances where auditing is not permitted as stipulated in Vietnam's Law on Independent Auditing;

b) Failure to comply with Vietnamese auditing standards and Vietnamese professional ethics standards for accountants and auditors when providing cross-border auditing services in Vietnam;

c) Failure to report or provide explanations to Vietnamese authorities regarding matters related to the provision of cross-border auditing services in Vietnam.

5. Additional sanctioning forms:

The foreign auditing firm that commits the violation of the regulations specified in point a, clause 4 of this Article shall have its Certificate of Eligibility to conduct cross-border auditing services in Vietnam revoked for a period of 03 to 06 months from the date the penalty decision takes effect.

Article 65. Penalties for violations of regulations on joint ventures with foreign auditing firms to provide cross-border auditing services in Vietnam.

1. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms in Vietnam that form a joint venture with foreign auditing firms for committing any of the following acts:

a) Incomplete archiving of records of audits conducted in joint ventures with foreign auditing firms to provide cross-border auditing services in Vietnam;

b) Failing to provide the audit records of the joint venture audit in a complete or timely manner to the competent authority when requested;

c) Failure to provide complete or timely explanations to competent authorities regarding audit reports, audit files, and other issues arising from joint audits with foreign auditing firms.

2. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms in Vietnam that form a joint venture with foreign auditing firms for committing any of the following acts:

a) Do not retain records of audits conducted in joint ventures with foreign auditing firms to provide cross-border auditing services in Vietnam;

b) Failing to provide the competent authorities with records of audits conducted in joint ventures with foreign auditing service businesses to provide cross-border auditing services in Vietnam when requested;

c) Failure to provide explanations to competent authorities regarding audit reports, audit files, and other issues arising from joint audits with foreign audit firms to provide cross-border audit services in Vietnam;

d) Failure to report to the Ministry of Finance on the status of joint ventures with foreign auditing firms in providing cross-border auditing services as required.

3. Additional sanctioning forms:

The foreign auditing firm that commits one of the acts specified in Clause 2 of this Article shall have its Certificate of Eligibility to conduct cross-border auditing services in Vietnam revoked for a period of 01 to 03 months from the date the penalty decision takes effect.

Section 8. VIOLATIONS OF NOTIFICATION AND REPORTING REGULATIONS

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

1. A warning penalty shall be issued to auditing firms that commit any of the following acts:

a) Notifying the Ministry of Finance less than 15 days after the deadline when there are changes that must be notified as stipulated in the Law on Independent Auditing;

b) Submitting a consolidated annual report on the maintenance of professional auditing qualifications by registered auditors at their unit to the Ministry of Finance less than 15 days after the prescribed deadline;

c) Notify the Ministry of Finance in writing less than 15 days after the prescribed deadline when the Certificate of Registration for Auditing Practice expires or becomes invalid in cases where notification is required by law;

d) Reporting to the Ministry of Finance less than 15 days late compared to the prescribed deadline when the Certificate of Eligibility to Conduct Auditing Services is lost or damaged;

d) Submit to the Ministry of Finance the Report on the maintenance of business conditions for auditing services periodically every year or when requested, within 15 days of the prescribed deadline;

e) Submitting the annual operational report and the financial statements of the preceding year to the Ministry of Finance less than 15 days late compared to the prescribed deadline;

g) Notifying the Ministry of Finance in writing less than 15 days after the prescribed deadline when resuming auditing business after a period of temporary suspension;

h) Submitting the application for termination of auditing services to the Ministry of Finance less than 15 days after the prescribed deadline;

i) Submitting periodic and ad hoc reports as required by the Ministry of Finance less than 15 days late compared to the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Notifying the Ministry of Finance 15 days or more later than the prescribed deadline when there are changes to the content as stipulated in the Law on Independent Auditing;

b) Submit the consolidated annual report on the maintenance of professional qualifications for auditors registered to practice at your unit, along with the annual report on maintaining professional qualifications for each auditor, to the Ministry of Finance at least 15 days later than the prescribed deadline;

c) Notifying the Ministry of Finance in writing 15 days or more later than the prescribed deadline when the Certificate of Registration for Auditing Practice expires or becomes invalid in cases where notification is required by law;

d) Reporting to the Ministry of Finance 15 days or more late compared to the prescribed deadline when the Certificate of Eligibility to Conduct Auditing Services is lost or damaged;

d) Submitting the Report on the maintenance of business conditions for auditing services to the Ministry of Finance annually or upon request more than 15 days late compared to the prescribed deadline;

e) Submitting the annual operational report and the financial report of the immediately preceding year to the Ministry of Finance 15 days or more later than the prescribed deadline;

g) Notifying the Ministry of Finance in writing 15 days or more later than the prescribed deadline when resuming auditing business after a period of temporary suspension;

h) Submitting the application for termination of auditing services to the Ministry of Finance 15 days or more later than the prescribed deadline;

i) Submitting periodic and ad hoc reports as required by the Ministry of Finance 15 days or more late compared to the prescribed deadline.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to notify the Ministry of Finance when changes requiring notification under the Law on Independent Auditing occur;

b) Failure to submit the annual consolidated report on the maintenance of professional qualifications of auditors registered to practice at their unit, along with the annual report on the maintenance of professional qualifications of each auditor, to the Ministry of Finance as required;

c) Failure to notify the Ministry of Finance when the Certificate of Registration for Auditing Practice expires or becomes invalid in cases where notification is required by law;

d) Failure to report to the Ministry of Finance when the Certificate of Eligibility to conduct auditing services is lost or damaged;

d) Failure to report on the maintenance of business conditions for auditing services on an annual basis or when requested to the Ministry of Finance;

e) Failure to submit the annual operational report and the financial statements of the immediately preceding year to the Ministry of Finance as required;

g) Failure to notify the Ministry of Finance in writing upon resuming auditing business after a period of temporary suspension;

h) Failure to submit the application for termination of auditing services to the Ministry of Finance as required;

i) Failure to notify the Ministry of Finance in writing, accompanied by copies of relevant documents, of the establishment or termination of operations of an auditing firm's overseas branch;

k) Failure to submit periodic and ad hoc reports as required by the Ministry of Finance.

Article 67. Penalties for violations of regulations on notification and reporting obligations of practicing auditors.

1. A warning penalty shall be issued to practicing auditors who notify or report to the Ministry of Finance less than 15 days late compared to the prescribed deadline when:

a) No longer working and having terminated the full-time employment contract with the auditing firm or branch of a foreign auditing firm in Vietnam as stated on the Certificate of Registration for Auditing Practice;

b) Full-time employment contracts at auditing firms or branches of foreign auditing firms in Vietnam have expired, been terminated, or have undergone changes that render them no longer full-time employment contracts as stipulated;

c) The work permit in Vietnam for the foreign practicing auditor has expired or is no longer valid;

d) To begin or temporarily cease participation as an individual in the capacity of legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or head of accounting), accounting staff, internal auditor, or other positions at other units or organizations outside the auditing firm, or when there are changes in working hours or positions at those units;

d) The auditing firm ceases operations, is dissolved, goes bankrupt, is divided, separated, merged, consolidated, or changes its form of ownership;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the auditing practice.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on practicing auditors who fail to notify or report to the Ministry of Finance 15 days or more late compared to the prescribed deadline when:

a) No longer working and having terminated the full-time employment contract with the auditing firm or branch of a foreign auditing firm in Vietnam as stated on the Certificate of Registration for Auditing Practice;

b) Full-time employment contracts at auditing firms or branches of foreign auditing firms in Vietnam have expired, been terminated, or have undergone changes that render them no longer full-time employment contracts as stipulated;

c) The work permit in Vietnam for the foreign practicing auditor has expired or is no longer valid;

d) To begin or temporarily cease participation as an individual in the capacity of legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or head of accounting), accounting staff, internal auditor, or other positions at other units or organizations outside the auditing firm, or when there are changes in working hours or positions at those units;

d) The auditing firm ceases operations, is dissolved, goes bankrupt, is divided, separated, merged, consolidated, or changes its form of ownership;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the auditing practice.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on practicing auditors who fail to notify or report to the Ministry of Finance as required when:

a) No longer working and having terminated the full-time employment contract with the auditing firm or branch of a foreign auditing firm in Vietnam as stated on the Certificate of Registration for Auditing Practice;

b) Full-time employment contracts at auditing firms or branches of foreign auditing firms in Vietnam have expired, been terminated, or have undergone changes that render them no longer full-time employment contracts as stipulated;

c) The work permit in Vietnam for the foreign practicing auditor has expired or is no longer valid;

d) To begin or temporarily cease participation as an individual in the capacity of legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or head of accounting), accounting staff, internal auditor, or other positions at other units or organizations outside the auditing firm, or when there are changes in working hours or positions at those units;

d) The auditing firm ceases operations, is dissolved, goes bankrupt, is divided, separated, merged, consolidated, or changes its form of ownership;

e) There is a request from the Ministry of Finance for the provision of periodic or ad hoc information related to the auditing practice.

Section 9. VIOLATIONS OF REGULATIONS ON QUALITY CONTROL OF AUDIT SERVICES

Article 68. Penalties for violations of regulations on quality control of audit services by audit firms and branches of foreign audit firms.

1. A warning penalty shall be issued to auditing firms that commit any of the following acts:

a) Submitting the Report on the results of self-assessment of audit service quality to the Ministry of Finance and the State Securities Commission less than 15 days after the prescribed deadline;

b) Submitting the Report on corrective actions and implementation of the inspection team's recommendations to the inspection agency and the professional auditing organization less than 15 days late compared to the prescribed deadline;

c) Submitting reports on independent audit activities as requested by the Ministry of Finance or the State Securities Commission less than 15 days late compared to the prescribed deadline.

2. A fine of VND 5.000.000 to VND 10.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Submitting the Report on the results of self-assessment of audit service quality to the Ministry of Finance and the State Securities Commission 15 days or more late compared to the prescribed deadline;

b) Submitting the Report on corrective measures and implementation of recommendations of the Inspection Team to the inspection agency and the professional auditing organization 15 days or more late compared to the prescribed deadline;

c) Submitting reports 15 days or more late compared to the prescribed deadline or submitting incomplete reports as required by the Ministry of Finance or the State Securities Commission regarding independent audit activities;

d) Failing to provide information and documents within the prescribed timeframe or providing incomplete information as required by competent authorities or organizations during the audit quality control process.

3. A fine of VND 10.000.000 to VND 20.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to submit the Report on the results of self-assessment of audit service quality to the Ministry of Finance and the State Securities Commission;

b) Failure to submit the Report on corrective actions and implementation of recommendations of the Inspection Team to the inspection agency and the professional auditing organization;

c) Failure to report as required by the Ministry of Finance or the State Securities Commission regarding independent audit activities;

d) Failure to provide information and documents as requested by competent authorities or organizations during the audit quality control process.

4. A fine of VND 20.000.000 to VND 30.000.000 shall be imposed on auditing firms that commit any of the following acts:

a) Failure to establish a quality control system for auditing services, review services, financial information services, other assurance services, and related services;

b) Failure to establish quality control policies and procedures for each audit;

c) Failure to implement quality control measures for auditing services, review services, financial information services, other assurance services, and related services;

d) Failure to implement quality control policies and procedures for each audit;

d) Providing inaccurate or untrue information or documents to competent authorities or organizations during the audit quality control process.

e) Failure to provide explanations or cooperate with competent authorities and organizations during the audit quality control process;

g) Not assigning practicing auditors and those with related responsibilities to work with the inspection team;

h) Not signing the inspection report immediately after the inspection is completed.

5. Additional sanctioning forms:

The right to use the Certificate of Eligibility to conduct auditing services shall be revoked for a period of 01 to 3 months from the date the penalty decision takes effect for auditing firms that commit one of the violations specified in point d, clause 03, and points e and f, clause 4 of this Article.

Chapter IV

AUTHORITY TO DRAFTING MINUTES AND IMPOSING ADMINISTRATIVE PENALTIES FOR VIOLATIONS IN THE FIELD OF ACCOUNTING AND INDEPENDENT AUDITING

Article 69. Authority to draw up administrative violation reports in the field of accounting and independent auditing.

The following persons are authorized to draw up administrative violation reports in the field of accounting and independent auditing:

1. The persons authorized to impose administrative penalties for violations in the field of accounting and independent auditing are specified in Articles 70 and 71 of this Decree.

2. Public officials, civil servants, police officers, and military officers performing their duties and tasks in accordance with legal regulations or administrative documents issued by competent agencies or individuals have the right to draw up administrative violation reports within the scope of their assigned duties and tasks.

Article 70. Authority of the Financial Inspectorate to impose administrative penalties for violations.

1. Financial inspectors at all levels have the authority to issue warnings in the field of accounting and independent auditing.

2. The Chief Inspector of the Department of Finance has the authority to impose administrative penalties for violations in the field of accounting and independent auditing as follows:

a) Caution;

b) A maximum fine of up to 25.000.000 VND;

c) Confiscation of items involved in administrative violations with a value not exceeding the fine amount stipulated in point b of this clause.

d) Revoking the right to use the certificate of registration for accounting services, the certificate of registration for auditing services, or the certificate of eligibility to conduct accounting and auditing services for a specified period, or suspending operations for a specified period.

d) Apply the remedial measures stipulated in Article 5 of this Decree.

3. The Chief Inspector of the Ministry of Finance has the authority to impose administrative penalties for violations in the field of accounting and independent auditing as follows:

a) Caution;

b) A maximum fine of up to 50.000.000 VND;

c) Confiscation of evidence related to administrative violations;

d) Revoking the right to use the certificate of registration for accounting services, the certificate of registration for auditing services, or the certificate of eligibility to conduct accounting and auditing services for a specified period, or suspending operations for a specified period;

d) Apply the remedial measures stipulated in Article 5 of this Decree.

Article 71. Authority of People's Committees at all levels to impose administrative penalties for violations.

1. The Chairperson of the People's Committee of the commune, ward, or town (collectively referred to as the commune level) has the authority to impose administrative penalties for violations in the field of accounting as follows:

a) Caution;

b) A maximum fine of up to 5.000.000 VND;

c) Confiscation of items involved in administrative violations with a value not exceeding the fine amount stipulated in point b of this clause.

2. The Chairperson of the People's Committee of the district, town, or city within the province (collectively referred to as the district level) has the authority to impose administrative penalties for violations in the field of accounting as follows:

a) Caution;

b) A maximum fine of up to 25.000.000 VND;

c) Confiscation of items involved in administrative violations with a value not exceeding the fine amount stipulated in point b of this clause;

d) Revoking the right to use the Certificate of Registration for Accounting Services, the Certificate of Eligibility to Conduct Accounting Services Business for a specified period, or suspending operations for a specified period;

d) Apply the remedial measures stipulated in Article 5 of this Decree.

3. The Chairperson of the People's Committee of the province or centrally-administered city (collectively referred to as the provincial level) has the authority to impose administrative penalties for violations in the field of accounting and independent auditing as follows:

a) Caution;

b) A maximum fine of up to VND 50.000.000 shall be imposed on individuals;

c) Confiscation of evidence related to administrative violations;

d) Revoking the right to use the certificate of registration for accounting services, the certificate of registration for auditing services, or the certificate of eligibility to conduct accounting and auditing services for a specified period, or suspending operations for a specified period;

d) Apply the remedial measures stipulated in Article 5 of this Decree.

Chapter V

TERMS ENFORCEMENT

Article 72. Terms enforcement

1. This Decree takes effect from March 01, 5.

2. This Decree replaces Decree No. 105/2013/ND-CP dated September 16, 2013 of the Government on administrative sanctions for violations in the field of accounting and independent auditing.

3. The provisions of this Decree shall be applied to handle violations that occurred before the effective date of this Decree as follows:

In cases where this Decree does not stipulate legal liability or stipulates lighter legal liability for violations committed before the effective date of this Decree but are only discovered or are under consideration and resolution afterwards, this Decree shall apply.

4. For administrative sanctions in the field of accounting and independent auditing that were issued or fully implemented before the effective date of this Decree, if the individual or organization subject to the administrative sanctions still has a complaint, the provisions of Government Decree No. 105/2013/ND-CP dated September 16, 2013, on administrative sanctions in the field of accounting and independent auditing shall be applied to resolve the complaint.

Article 73. Responsible for implementing

1. The Minister of Finance is responsible for guiding and organizing the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decree.

Recipients: - Party Central Committee Secretariat; - Prime Minister, Deputy Prime Ministers; - Ministries, ministerial-level agencies and government-attached agencies; - People's Councils, People's Committees of provinces and centrally-run cities; - Central Office and Party Committees; - Office of the General Secretary; - Office of the President; - Ethnic Council and Committees of National Assembly; - Congress office; - Supreme People's Court; - People's Procuratorate of the Supreme; - State audit; - National Financial Supervisory Committee; - Bank for Social Policy; - Vietnam Development Bank; - Central Committee of Vietnam Fatherland Front; - Central agency of unions; - VPCP: Chairman, Deputy Chairmen, TT Assistant, General Director of the Portal, departments, agencies, units, Official Gazette; – Save: VT, KTTH (2).

TM. GOVERMENT PRIME MINISTER Nguyen Xuan Phuc