Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Vietnam Accounting Association

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Vietnam


    2. Name of member body:
      Vietnam Accounting Association

      Or please specify name:



    3. Individual responsible for preparation:
      Mr Bui Van Mai, Vice President cum Secretary General of VAA,


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      / 1998



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      AFA Asean Federation of Accountants



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: The Governmental Enterprise Act, The Enterprise Act (June 12, 1999), The Law on Foreign Investment in Vietnam (latest amendment June 9, 2002), The Commerce Law (May 10, 1997)
      b). the Enacting body: All above are enacted by the Vietnam National Assembly
      c). date the Act or Code came into force: /


    25. How can IFAC obtain a copy of the Act or Code?
      These acts and laws can be downloaded from the website of Ministry of Finance of Vietnam: www.mof.gov.vn


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): Joint Stock Companies - see Attachment
      Private companies   Other (please specify): Limited Companies - see Attachment
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities See the attachment for additional informaiton about the Accounting Law. At present, Vietnam has only accounting requirements for regulatory reporting. Article 29 of the Vietnamese Accounting Law issued on June 17,2003 and Article 19 of Decree No. 129/2004/ND/CP of Government prescribe that all types of enterprise are required to prepare annual financial statement to Business Registration Office, Statistic Office, Tax Office and some other related agencies ( depending on different types of enterprise). The Ministry of Finance of Vietnam published guidance on preparing financial statement under the Decision No. 167QD/BC/2000 dated on October 25,2000 and in some Vietnamese Accounting Standards (VAS) such as VAS No 21 - Preparation and disclosure financial statements, VAS No. 24 - Cash Flow Statement , VAS No.25 - Consolidated financial statement. Up to now The Ministry of Finance has issued and announced 22 VASs which are developed based on International Accounting Standards issued by IASB.
      Private companies See above for listed entities
      Governmental See above for listed entities
      Not-for-profit
      Other (please describe) Joint Stock Companies See above for listed entities
      Other (please describe) Limited Companies See above for listed entities


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities See the attachment for additional informaiton about the Accounting Law and Decree on Independent Auditing. According to the Decree No 93/2003 ND/CP dated on 13 August 2003 of the Government prescribes responsibilities and functions of State Audit Office and states “government enterprises are objectives of State Audit Office.” Annually, the Director of State Audit Office submits to the Prime Minister a list of Governmental enterprises need to be audited in the year. According to the Decree No. 105/2004ND/CP dated on 30 March 2004 of Government on External Audit which prescribes that annual financial statements of the following enterprises should be audited by external auditors: Foreign invested companies, banks, financial institutes, insurers, listed companies, governmental companies. Note: Up to November 2004, Ministry of Finance has announced 33 Vietnamese Standards on Auditing ( VSA) which are developed based on International Standards on Auditing (ISAs) issued by IFAC.
      Private companies See above for listed entities
      Governmental See above for listed entities
      Not-for-profit
      Other (please describe) Joint Stock Companies See above for listed entities
      Other (please describe) Joint Stock Companies See above for listed entities


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify): Government for State Audits


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:
      The law prescribes that State Audit of Vietnam can ask assistance from other auditors when needed. According to State Audit of Vietnam, an auditor can use information or evidence provided by other auditors.


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:
      According to Decree No 105/2004 ND/CP of Government, an enterprise can only sign a contract with an auditing company to audit its financial statements for 3 years. There is an exception that a big auditing firm owned by some owners can sign an audit engagement for longer term with a rotation every 3 years of the auditor who signs the audit report.



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Decree No.105/2004ND/CP dated 30 March 2004 issued by Government on External Audit prescribes the financial reporting and auditing requirements for listed entities . This is the lastest legal authority for such requirements.

    2. the Enacting body(ies)

    3. the latest amendment date?



    35. How can IFAC obtain a copy of the Legal authority?
      Download from website of MOF: www.mof.gov.vn.


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      The law prescribes that the State Audit of Vietnam (department of the government established by decree) can ask the assistance from other auditors when needed. According to VAS: An auditor can use information or evident document provided by other auditors.


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      According to Decree No 105/2004 ND/CP of Government an enterprise can only sign a contract with an auditing company to audit its financial statement in continued 3 years. There is an exception that a big auditing firm owned by some owners can sign an audit engagement for longer term with a rotation every 3 years of the auditor signing the audit report.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Ministry of Finance
      Other (please describe) All other entities Ministry of Finance
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Vietnamese Standards on Auditing are not on the website. IFAC can obtain copies of these documents by making an order.

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Ministry of Finance)


    44. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      See the attachment for additional informaation about the Accounting Law and Decree on Independent Auditing.

      b. Name of standards

      Vietnamese Standards on Auditing.


    45. How many voting members does the standard-setting body have?
      Not applicable


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Not applicable


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Not applicable


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    52. To what entity is the standard-setting body accountable?
      Not applicable


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The Decree on Independent Auditing No. 105/2004/ND/CP states in Article 33 that the content of teh State administration of independent auditing operations includes promulgation, dissemination, direction, and organization of implementation of auditing standards and guidelines on implementation of auditing standards and on methods of exercising professional auditing skills.

    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)

      Up to November 2004, Ministry of Finance has announced 33 Vietnamese Standards on Auditing which are developed based on International Standards on Auditing (ISAs) issued by IFAC.

    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Under development Ministry of Finance
      Professional Accountants in Business Under development Ministry of Finance
      Professional Accountants in the Public Sector Under development Ministry of Finance
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Decree on Independent Auditing No. 105/2004/ND/CP contains some ethical requirements. For example, Articles 18 and 19 contain provisions relating to economic and financial relationships, prohibited conduct, and other ethics related matters.

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Ministry of Finance)


    56. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      The Ministry of Finance of Vietnam is responsible for developing and announcing ethics standards which will be issued by the end of 2005. Moreover, ethics requirements are prescribed in other legal documents such as Decree No. 105/2004 ND/CP og Government dated on 30 March 2004 and the Vietnamese Standard on Auditing No. 200.

      b. Name of standards



    57. How many voting members does the standard-setting body have?


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      The overal education system of Vietnam includes:
      1. Primary and junior education level from the 1st grade to the 9th grade for children from 7 years old and more
      2. Secondary education level from the 10th grade to the 12th grade for children from 16 years old and more.
      3. Professional education
      3.1 Secondary professional education: for learners who study for the period of time from 30 to 36 months after graduating from secondary school
      3.2 University education with the period of time to study from 48 to 60 months for students graduating from secondary school and having passed the entry examination.
      4. Post -univesity education
      4.1 Master education with the the period of time to study for 18 months for people graduating from universities with excellent degree.
      4.2 Doctorate degree is granted for people who have Master degree and work inconjunction with study for 36 months
      5. The title Professor and Associate Professor are granted for Doctors who have great contribution to sienctific research, education and training the subordinates.

      The compulsory education for all people are primary, junior and secondary level. For people working in industries must be trained in secondary professional schools or higher level.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.



    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      See above
      Professional examinations
      See above
      Practical experience
      See above
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The Ministry of Training and Education of Vietnam is the governmental agency who is responsible for drafting and submit to National Assembly for approval the Education law. Moreover, it issues Decrees, guidelines on primary and secondary education, and professional education as well.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

    2. How many voting members does the relevant body(ies) have

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      50 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      Order

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain) CPA final exams delivered by Ministry of Finance


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      Ministry of Finance


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      Ministry of Finance


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government See 82a below.
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?



      b. Are the documents available in English?
      Yes   No



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Vietnamese Accounting Law Article 8 June 2003 Ministry of Finance
      Other (please describe) Other entities Vietnamese Accounting Law Article 8 June 2003 Ministry of Finance
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Order

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Ministry of Finance)


    95. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      According to Article 8 of Vietnamese Accounting Law dated on 17 June 2003, Ministry of Finance is responsible for announcing accounting standards for private sector.

      b. Name of standards

      Vietnamese Accounting Standards. VASs are based on International Accounting Standards developed by the IASB.


    96. How many voting members does the standard-setting body have?
      Not Applicable


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Not Applicable


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Not Applicable


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?
      Not Applicable


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Decree No. 144/2003ND/CP dated on 25 November 2003 of the Government regulates securities and securities market. Ministry of Finance has had guidance attached to the Decree.


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      State Securities Committee is a governmental agency which is under the control of Ministry of Finance, is in charge of controlling quality and compliance of accounting standards and requirements in preparing and presenting and auditing financial statements.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Ministry of Finance is responsible for submitting drafts of regulation of audit profession, setting accounting and auditing standards, and reviewing financial statements prepared by listed entities and monitoring of their compliance with the accounting and disclosure requirements to Government to issue or to be allowed to issue securities.

    2. accounting and auditing standard-setting

      See above

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      See above



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Stock Exchange Center



    Section 10B -- Stock Exchange
    Stock Exchange Center Details


    110. For Stock Exchange Center, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The operation of banks and similar financial institutions in Vietnam is regulated in the following authority: The State Bank Law No.6/1997QH10 dated on 25 December 1997, amended on 17 June 2003. The Credit Institution Law No.7/1997/QH10 dated on 25 December 1997. At present, Vietnam has only accounting requirements for regulatory reporting. According to Article 29 of Vietnamese Accounting Law and Article 19 of Decree 129/2004ND/CP of Government, all types of enterprises are required to prepare and present annual financial statements to business registration agency, statistic office, tax office and some other authorities up to specific requirements for different types of enterprise.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      Besides requirements to duly obey the Vietnamese Accounting Standards that apply to enterprises, the banks and similar financial institutions have to conform to the accounting standard no. 22 "Additional financial information for banks and similar institutions".


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The Financial and Banking Department of Ministry of Finance is responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirement imposed on no-banking institutions.

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The Financial and Banking Department of Ministry of Finance is responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirement imposed on no-banking institutions.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      The responsibilities of the Financial and Banking Department of Ministry of Finance are prescribed in Decree No.77/2003ND/CP dated on 1 July 2003 of Government.


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The Financial and Banking Department of Ministry of Finance is responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirement imposed on insurance companies.


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The responsibilities of the Financial and Banking Department of Ministry of Finance are prescribed in Decree No.77/2003ND/CP dated on 1 July 2003 of Government.


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.


    122. What is the source of Legal authority of each regulatory authority?


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.



    125. Under what authority does the organization conduct the program of quality assurance review?


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?




    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      The Ministry of Finance and other Industrial Ministries such as Construction Ministry, Transportation Ministry, Commerce Ministry, Governmental Investigation, Provincial People Committees that are responsible for the investigatory and disciplinary function in Vietnam.


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?



    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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    * Indicates organizations that qualify to submit SMO Action Plans biennially

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