Contents of audit service quality control in Vietnam

Contents of audit service quality control in Vietnam​ (Image from the internet)

1. Purpose of quality control of audit services in Vietnam

According to Article 4 of Circular 157/2014/TT-BTC, the purposes for quality control of audit services in Vietnam are as follows:

- Evaluate the establishment, dissemination, and implementation of internal quality control policies and procedures of audit firms.

- Assess compliance with professional standards, legal regulations, and other relevant provisions in providing audit services by audit firms and practicing auditors.

- Detect, correct, and promptly address violations found during the quality control of audit services.

- Contribute to amending, supplementing, and perfecting the legal system on independent auditing, thus enhancing the quality of audit services.

2. Contents of audit service quality control in Vietnam

According to Article 5 of Circular 157/2014/TT-BTC, the contents for quality control of audit services in Vietnam are prescribed as follows:

- Check the establishment, issuance, and implementation of internal quality control policies and procedures of audit firms.

- Examine the completion of audit service contracts by audit firms and practicing auditors.

- Check compliance with other legal provisions on independent auditing and relevant laws, including:

+ Registration and maintenance of audit service business conditions by audit firms;

+ Registration and maintenance of auditing practice conditions by practicing auditors;

+ Implementation of independent audits for entities with public interest;

+ Fulfillment of obligations by audit firms, practicing auditors, and other related matters.

- Supervise compliance with legal provisions on independent auditing and related laws as regulated in Clause 3, Article 5 of Circular 157/2014/TT-BTC.

3. Forms of quality control of audit services in Vietnam

The forms of quality control of audit services according to Article 6 of Circular 157/2014/TT-BTC are as follows:

- Supervision of audit service quality and compliance with legal regulations on independent auditing

+ Evaluate the Annual Quality Self-Assessment Report of audit services submitted by audit firms to the Ministry of Finance and State Securities Commission;

+ Assess the quality of audit reports of audit firms through financial statements of entities required to audit and submitted to the Ministry of Finance, State Securities Commission, and relevant agencies;

+ Evaluate compliance with registration and maintenance conditions for auditing practices by practicing auditors and business conditions for audit services by audit firms;

+ Supervise through reports that audit firms annually submit to the Ministry of Finance, State Securities Commission as regulated, and other information collected during management.

- Direct inspection of audit service quality

+ Authorized bodies (Ministry of Finance, State Securities Commission) set up regular or extraordinary inspection teams at audit firms;

+ Inspect signs of violations in audit service quality for audit firms and practicing auditors;

+ Verify complaints, denunciations related to independent auditing activities.

4. Regulations on assignment and coordination in quality control of audit services in Vietnam

Assignment and coordination in quality control of audit services are stipulated in Article 8 of Circular 157/2014/TT-BTC as follows:

- Audit firms and practicing auditors are responsible for self-controlling the quality of audit services they provide.

- The Ministry of Finance is responsible for managing and organizing the implementation of quality control for audit services.

- The State Securities Commission is responsible for controlling the quality of audit services for audit firms and practicing auditors authorized to audit entities with public interest in the securities field.

- The professional organizations in auditing have the responsibility to cooperate with the Ministry of Finance and the State Securities Commission in organizing the implementation of quality control for audit services.

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