CIRCULAR

PROVIDING GUIDANCE ON REPORTING REGULATIONS IN THE INDEPENDENT ACCOUNTING AND AUDIT SECTOR IN GOVERNMENT’S DECREE NO. 174/2016/ND-CP DATED DECEMBER 30, 2016, ELABORATING ON SEVERAL ARTICLES OF THE ACCOUNTING LAW AND GOVERNMENT’S DECREE NO. 17/2012/ND-CP DATED MARCH 13, 2012, PROVIDING DETAILS AND INSTRUCTIONS ABOUT IMPLEMENTATION OF SEVERAL ARTICLES OF THE LAW ON INDEPENDENT AUDIT

Pursuant to the Law on Independent Audit No. 67/2011/QH12 dated March 29, 2011;

Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Pursuant to the Government's Decree No. 17/2013/ND-CP dated March 13, 2012 elaborating and providing guidance on implementation of certain articles of the Law on Independent Audit;

Pursuant to the Government’s Decree No.174/2016/ND-CP dated December 30, 2016, elaborating on certain articles of the Law on Accounting;

Pursuant to the Government’s Decree No. 09/2019/ND-CP dated January 24, 2019, prescribing reporting regimes of state administrative authorities;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Upon the request of the Director of Department of Accounting and Auditing Regulations,

The Minister of Finance hereby promulgates the Circular providing guidance on reporting regulations in the independent accounting and audit sector in Government’s Decree No. 174/2016/ND-CP dated December 30, 2016, elaborating on several articles of the Accounting Law and Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, providing details and instructions about implementation of several articles of the Law on Independent Audit. 

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular guides the periodical reporting regime on the performance of contracts on the provision of independent cross-border accounting and auditing services arising in the reporting period in Vietnam and the situation of joint venture with foreign accounting service providers and overseas auditing bodies in providing independent cross-border accounting and auditing services as prescribed in Article 32 and 33 of the Government’s Decree No. 174/2016/ND-CP dated December 30, 2016, detailing a number of articles of the Accounting Law, and Article 13 and 14 of the Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, detailing and guiding the implementation of several articles of the Law on Independent Audit.

Article 2. Subjects of application

1. Accounting service providers in Vietnam that enter into joint ventures with foreign accounting service providers to provide cross-border accounting services in Vietnam.

2. Foreign accounting service providers that provide cross-border accounting services in Vietnam.

3. Auditing companies in Vietnam that enter into joint ventures with foreign auditing companies to provide cross-border auditing services in Vietnam.

4. Foreign auditing companies that provide cross-border audit services in Vietnam.

5. Organizations and individuals related to the periodic reporting regime on the performance of contracts on provision of cross-border accounting and audit services arising in the reporting period in Vietnam and the situation of implementation of joint ventures with foreign accounting providers and foreign auditing companies in providing cross-border accounting and auditing services.

Chapter II

SPECIFIC PROVISIONS

Article 3. Periodic reporting regulations for provision of cross-border accounting services

1. A periodical report on the provision of cross-border accounting services that is made by a foreign accounting service provider shall contain the followings:

a) Report title:  Review and assessment of performance of contract on provision of cross-border accounting services.

b) Report’s required contents:

- Information about partners;

- List of chartered accountants of foreign accounting service providers;

- List of chartered accountants charged with performing tasks assigned to each contracting party;

- List of contracts on provision of cross-border accounting services concluded within the 6-month period;

- Evaluation of compliance with Vietnam’s domestic laws.

c) Report maker: Foreign accounting service providers that provide cross-border accounting services in Vietnam.

d) Report recipient: Ministry of Finance (c/o Department of Accounting and Auditing Regulations).

dd) Methods of sending and receiving reports: Periodical reports are presented in either documentary or electronic form, and sent by employing one of the following methods:

- Directly;

- Postal services;

- Emails;

- Others provided by law.

e) Submission deadline: The 31st of July at the latest in the current reporting year with respect to first half-year reports; the 31st of January at the latest in the subsequent reporting year with respect to second half-year reports.

g) Reporting frequency: Reports are made periodically every six months.

h) Data closing duration: The closing duration for data collected within the first half of the reporting year ranges from January 1 to June 30 in the reporting year; the closing duration for data collected within the second half of the reporting year ranges from July 1 to December 31 in the reporting year.

i) Sample report layout: According to the Appendix No. 01/BC hereto.

k) Sample reporting data: According to the Appendix No. 01/BC hereto.

l) Instructions about reporting procedures: Annually, foreign accounting service providers shall collect information using survey forms and send such information to the Ministry of Finance within the prescribed time limit.

2. The contents of periodic reports on the implementation of joint ventures with foreign accounting service providers:

a) Report title:  Review and assessment of joint venture with foreign accounting service providers in providing cross-border accounting services.

b) Report’s required contents:

- Information about partners;

- List of chartered accountants charged with performing tasks assigned to each contracting party;

- List of contracts on provision of cross-border accounting services concluded within the 6-month period.

c) Report maker: Accounting service providers in Vietnam that enter into joint ventures with foreign accounting service providers to provide cross-border accounting services in Vietnam.

d) Report recipient: Ministry of Finance (c/o Department of Accounting and Auditing Regulations).

dd) Methods of sending and receiving reports: Periodical reports are presented in either documentary or electronic form, and sent by employing one of the following methods:

- Directly;

- Postal services;

- Emails;

- Others provided by law.

e) Submission deadline: The 31st of July at the latest in the current reporting year with respect to first half-year reports; the 31st of January at the latest in the subsequent reporting year with respect to second half-year reports.

g) Reporting frequency: Reports are made periodically every six months.

h) Data closing duration: The closing duration for data collected within the first half of the reporting year ranges from January 1 to June 30 in the reporting year; the closing duration for data collected within the second half of the reporting year ranges from July 1 to December 31 in the reporting year.

i) Sample report layout: According to the Appendix No. 02/BC hereto.

k) Sample reporting data: According to the Appendix No. 02/BC hereto.

l) Instructions about reporting procedures: Annually, accounting service providers in Vietnam shall collect information using survey forms and send such information to the Ministry of Finance within the prescribed time limit.

Article 4. Periodic reporting regulations for provision of cross-border audit services

1. The contents of periodic review and assessment reports on performance of contracts on provision of cross-border audit services of foreign audit service providers:

a) Report title:  Review and assessment of performance of contract on provision of cross-border auditing services.

b) Report’s required contents:

- Information about partners;

- List of chartered auditors of foreign auditing service providers;

- List of chartered auditors charged with performing tasks assigned to each contracting party;

- List of contracts on provision of cross-border auditing services concluded within the 6-month period;

- Evaluation of compliance with Vietnam’s domestic laws.

c) Report maker: Foreign auditing companies that provide cross-border audit services in Vietnam.

d) Report recipient: Ministry of Finance (c/o Department of Accounting and Auditing Regulations).

dd) Methods of sending and receiving reports: Periodical reports are presented in either documentary or electronic form, and sent by employing one of the following methods:

- Directly;

- Postal services;

- Emails;

- Others provided by law.

e) Submission deadline: The 31st of July at the latest in the current reporting year with respect to first half-year reports; the 31st of January at the latest in the subsequent reporting year with respect to second half-year reports.

g) Reporting frequency: Reports are made periodically every six months.

h) Data closing duration: The closing duration for data collected within the first half of the reporting year ranges from January 1 to June 30 in the reporting year; the closing duration for data collected within the second half of the reporting year ranges from July 1 to December 31 in the reporting year.

i) Sample report layout: According to the Appendix No. 03/BC hereto.

k) Sample reporting data: According to the Appendix No. 03/BC hereto.

l) Instructions about reporting procedures: Annually, foreign auditing service providers shall collect information using survey forms and send such information to the Ministry of Finance within the prescribed time limit.

2. The contents of periodic reports on the implementation of joint ventures with foreign auditing service providers:

a) Report title:  Review and assessment of joint venture with foreign auditing service providers in providing cross-border auditing services.

b) Report’s required contents:

- Information about partners;

- List of chartered auditors charged with performing tasks assigned to each contracting party;

- List of contracts on provision of cross-border auditing services concluded within the 6-month period.

c) Report maker: Auditing companies in Vietnam that enter into joint ventures with foreign auditing companies to provide cross-border auditing services in Vietnam.

d) Report recipient: Ministry of Finance (c/o Department of Accounting and Auditing Regulations).

dd) Methods of sending and receiving reports: Periodical reports are presented in either documentary or electronic form, and sent by employing one of the following methods:

- Directly;

- Postal services;

- Emails;

- Others provided by law.

e) Submission deadline: The 31st of July at the latest in the current reporting year with respect to first half-year reports; the 31st of January at the latest in the subsequent reporting year with respect to second half-year reports.

g) Reporting frequency: Reports are made periodically every six months.

h) Data closing duration: The closing duration for data collected within the first half of the reporting year ranges from January 1 to June 30 in the reporting year; the closing duration for data collected within the second half of the reporting year ranges from July 1 to December 31 in the reporting year.

i) Sample report layout: According to the Appendix No. 04/BC hereto.

k) Sample reporting data: According to the Appendix No. 04/BC hereto.

l) Instructions about reporting procedures: Annually, auditing service providers in Vietnam shall collect information using survey forms and send such information to the Ministry of Finance within the prescribed time limit.

Article 5. Entry into force

1. This Circular shall come into force as from July 1, 2020.

2. In the course of implementation of this Circular, if there is any difficulty or query that arises, involved entities should promptly inform the Ministry of Finance for its review and decision on any necessary amendment or supplement./.

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