Decree No. 105/2013/ND-CP dated September 16, 2013 of the Government on penalizing administrative violations in accounting and independent audit

 THE GOVERNMENT

Decree No. 105/2013/ND-CP dated September 16, 2013 of the Government on penalizing administrative violations in accounting and independent audit

Pursuant to the Law on organization of Government dated December 25, 2001;

Pursuant to the Law on handling of administrative violations dated June 20, 2012;

Pursuant to the Law on accounting dated June 17, 2003;

Pursuant to the Law on Independent Audit dated March 29, 2011;

At the proposal of Minister of Finance;

The Government promulgates Decree on sanctioning of administrative violations in domains of accounting and independent audit.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Decree specifies acts of administrative violation, limitations for penalizing, penalizing forms and levels, remedies; competence for making minutes and competence for penalizing administrative violations in domains of accounting and independent audit.

Article 2. Subjects of application

1. Domestic and foreign individuals and organizations (hereinafter collectively referred to as individuals and organizations) who violate provisions of law on accounting, independent audit in Vietnam’s territory, but not to the extent of being examined for penal liability will be sanctioned administrative violations as prescribed in this Decree.

2. The persons competent to making minutes, handling administrative violations and other concerned individuals and organizations.

Article 3. Statute of limitations for handling administrative violations

1. Statute of limitations for sanctioning administrative violations in domain of accounting will be 2 years;

2. Statute of limitations for sanctioning administrative violations in domain of independent audit will be 1 year;

3. Time to calculate the statute of limitations for sanctioning administrative violations specified in Clause 1, Clause 2 of this Article is defined as follows:

a) For an act of administrative violation already ended, statute of limitations is calculated from time of ending act of violation.

b) For an act of administrative violation currently being performed, statute of limitations is calculated from time of detecting act of violation.

4. In case of sanctioning administrative violations for individuals which are transferred by the agencies conducting the proceedings, statute of limitations will comply with provisions in Clause 1, Clause 2 and Clause 3 of this Article. Duration for the agencies conducting the proceeding to process and consider will be included in statute of limitations for sanctioning administrative violations.

5. In time limit prescribed in Clause 1, Clause 2 and Clause 3 of this Article, if individuals or organizations deliberately shirk or obstruct the sanction, statute of limitations for sanctioning administrative violations will be recounted, starting from the time of termination of acts of shirking or obstructing sanction.

Article 4. Forms of sanctioning administrative violations

1. For each act of administrative violation in domains of accounting, independent audit, organizations and individuals violated must suffer one of following principal sanctioning forms:

a) Impose warning;

b) Fine:

The maximum fine levels in accounting will be VND 30,000,000 for individuals and VND 60,000,000 for organizations. The fine levels defined in Articles from 7 to 16 Chapter 2 of this Decree will be the fine levels applicable to individuals. For the same act of administrative violation, the fine level for infringing organizations will be twice as the fine level for individual.

The maximum fine levels in dependent audit will be VND 50,000,000 for individuals and VND 100,000,000 for organizations.

c) Deprive of the right to use practice permits or certificates or operation suspension for a definite period in independent audit:

- Suspension of provision of audit service applicable to audit organization for up 12 months from the effective day of sanction decision;

- Suspension of practicing audit applicable to the practice auditors for up 12 months from the effective day of sanction decision;

- Suspension of updating knowledge for auditors for up 06 months from the effective day of sanction decision;

- Suspension of providing through-border audit service in Vietnam of foreign audit enterprises for up 24 months from the effective day of sanction decision;

- Deprive of the right to use certificates of registration for practicing audit for up 24 months from the effective day of sanction decision;

- Deprive of the right to use certificates of eligibility for provision of audit service for up 24 months from the effective day of sanction decision;

2. Apart from principal sanctioning forms prescribed in Clause 1 of this Article, depending on nature and seriousness of violations, organizations and individuals violating administratively in accounting may also be forced to apply the following additional sanctioning forms:

a) Deprive of the right to use the accountancy practice certificates for persons practicing accountancy from 1 month to 3 months; suspension of provision of accounting service for organizations providing accounting service from 1 month to 3 months;

b) Confiscation of accounting vouchers, accounting books, financial statements.