Independent audit activities in the national economy are the foundation for the sustainable and effective development of the capital market and financial market. The quality of independent auditing is a vital factor for investors, shareholders, policy makers and others to trust in the financial reporting process as well as the disclosure of information. financial report. Therefore, independent auditing enterprises are set by the state with very strict conditions and regulations.

Truong Quyen Law Office - Davilaw Branch would like to advise businesses on the conditions to establish an independent audit service business in accordance with current law.

Enterprises providing independent audit services need to have a certificate of eligibility to conduct business in audit services.

Conditions for issuance of Certificate of eligibility to conduct business in auditing services for each type of enterprise are as follows:

For limited liability company two or more members:

A limited liability company with two or more members applying for a certificate of eligibility to conduct business in auditing services must meet the following conditions:

– Have a business registration certificate or certificate business registration or investment registration certificate as prescribed by law;

– Have at least 05 practicing auditors, of which there must be at least 02 capital contributing members, the capital contribution level must comply with the provisions of law;

– The legal representative, Director or General Director of the limited liability company must be a practicing auditor;

– Ensure legal capital according to government regulations (five billion VND);

– The capital contribution of organizational members must not exceed the level prescribed by the Government. The representative of an organizational member must be a practicing auditor.

For partnerships:

When a partnership company meets all of the following conditions, it will be granted a certificate of eligibility to provide audit services:

– Have a business registration certificate, enterprise registration certificate or investment certificate according to the provisions of law;

– Have at least 05 practicing auditors, including at least two partners;

– The legal representative, Director, General Director of the partnership company must be accountant practitioner.

For private enterprises:

A private enterprise is granted a certificate of eligibility to conduct business in auditing services when it meets all of the following conditions:

– Have a business registration certificate, enterprise registration certificate or investment registration certificate according to the provisions of law;

– Have at least 05 practicing auditors, of which there must be at least a private business owner;

- Owner private enterprise is also the director.

For branches of foreign auditing firms in Vietnam

Branches of foreign enterprises that meet the following conditions are allowed to apply for a certificate of eligibility to provide independent audit services in Vietnam:

– Foreign auditing firms are allowed to provide independent audit services according to the laws of the country where the foreign auditing firm's headquarters is located;

– Have at least two practicing auditors, including the Director or General Director of the branch;

– The Director or General Director of a branch of a foreign auditing firm is not allowed to hold a management or executive position in another enterprise in Vietnam;

– The foreign auditing firm must send a document to the Ministry of Finance ensuring responsibility for all obligations and commitments of the foreign auditing firm's branch in Vietnam;

– Foreign auditing firms must ensure to maintain capital not lower than the legal capital level according to Government regulations.

For branches of auditing firms:

Branches of auditing firms are allowed to provide audit services when all of the following conditions are met:

– Auditing firms that meet the above conditions for providing audit services;

– The branch has at least two practicing auditors, including the branch director. A practicing auditor must not simultaneously be an auditor registered to practice at the head office or another branch of the auditing firm;

– Obtain written approval from the Ministry of Finance.

Procedures for applying for a certificate of eligibility to conduct business in auditing services:

Enterprises providing audit services send an application for a certificate of eligibility to provide audit services to the Ministry of Finance. Records include:

1.      Application for issuance of Certificate of eligibility to conduct business in auditing services;

2.      Copy of business registration certificate, enterprise registration certificate, investment registration certificate;

3.      Copy of audit registration certificate of practicing auditors;

4.      Full-time labor contracts for practicing auditors;

5.      Documents proving capital contribution for limited liability companies with two or more members;

6.      Other documents prescribed by the Ministry of Finance.

After receiving valid documents, within 30 days, the Ministry of Finance shall issue a certificate of eligibility to conduct business in auditing services to audit firms and branches of foreign audit firms in Vietnam.

In case the Ministry of Finance refuses, it must respond in writing and clearly state the reason.