New Audit Regulations in Vietnam
Apr. 19 – On March 13, 2012, the Vietnam government promulgated Decree No. 17/2012/ND-CP detailing and guiding the implementation of legal articles related to independent audits.
This Decree detailed conditions regarding the granting of certificates of satisfaction of auditing business conditions in Vietnam.
Specifically, limited liability companies must meet the following conditions:
- Legal capital for the limited liability company shall be 3 billion Vietnamese dong (US$143,000); as from January 1, 2015, the legal capital shall be 5 billion Vietnamese dong (US$238,000). During its operation, the limited liability company must keep equity in the balance sheets not less than the legal capital.
- The auditing limited liability company must have at least two limited partners who are auditors having registered for their auditing practice in the company. Capital contributed by practicing auditors must account for over 50 percent of the company’s charter capital. The practicing auditor shall not be permitted to be a member of two or more audit firms at the same time.
Foreign audit firms requesting the certificate of satisfaction of auditing business conditions to its branches in Vietnam must have equity in the balance sheet of at least US$500,000 at the end of the fiscal year nearest the time of request. During its operation, the foreign audit firm must keep the equity in the balance sheet and the allocated capital of its branch in Vietnam not less than that capital.
The allocated capital of the branch of foreign audit firms in Vietnam must not be less than the legal capital applicable to the limited liability company mentioned above.
This Decree takes effect from May 1, 2012.
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