Prohibited Acts under the Law on Independent Auditing
1. Members participating in an audit, auditing firms, and branches of foreign auditing firms in Vietnam are prohibited from committing the following acts:
a) Purchasing, receiving as gifts, or holding shares or contributed capital in the audited entity, regardless of quantity;
b) Buying or selling bonds or other assets of the audited entity that affect independence in accordance with the Code of Ethics for Accounting and Auditing Professionals;
c) Receiving or demanding any money or benefits from the audited entity other than service fees and expenses agreed upon in the executed contract;
d) Harassing or deceiving clients or audited entities;
đ) Disclosing information on audit files, clients, or audited entities, unless approved by the client or audited entity, or as prescribed by law;
e) Providing or advertising false information regarding qualifications, experience, or capacity to provide services of practicing auditors, auditing firms, or branches of foreign auditing firms in Vietnam;
g) Soliciting clients through obstruction, inducement, bribery, collusion with clients, or other unfair competition practices;
h) Collecting debts on behalf of the audited entity;
i) Colluding or conspiring with the audited entity to falsify accounting records, financial statements, audit files, or misrepresent audit results;
k) Forging or falsifying audit files;
l) Renting, lending, or borrowing auditors’ certificates and Certificates of Audit Practice Registration for professional activities;
m) Providing audit services without meeting the conditions prescribed by this Law;
n) Any other acts as prescribed by law.
2. In addition to Clause 1 of this Article, auditors and practicing auditors are prohibited from committing the following acts:
a) Practicing auditing as individuals;
b) Forging, renting, lending, or permitting the use of their name, auditors’ certificates, or Certificates of Audit Practice Registration for auditing activities;
c) Working concurrently for two or more auditing firms or branches of foreign auditing firms in Vietnam at the same time;
d) Any other acts as prescribed by law.
3. Audited entities, as well as related organizations and individuals, are prohibited from committing the following acts:
a) Selecting organizations or individuals that do not meet the auditing practice conditions to sign audit contracts;
b) Refusing to provide information or documents necessary for the audit as requested by practicing auditors, auditing firms, or branches of foreign auditing firms in Vietnam;
c) Obstructing the work of audit team members;
d) Providing false, dishonest, incomplete, or untimely information or documents related to the audit;
đ) Bribing, colluding, or conspiring with audit team members, auditing firms, or branches of foreign auditing firms in Vietnam to falsify accounting records, financial statements, audit files, or audit reports;
e) Concealing violations of financial or accounting laws;
g) Threatening, retaliating against, or coercing audit team members with the purpose of distorting audit results;
h) Any other acts as prescribed by law.
4. Organizations and individuals are prohibited from unlawfully interfering in or obstructing the professional activities of practicing auditors, auditing firms, or branches of foreign auditing firms in Vietnam; or from abusing their positions or powers to violate regulations on granting Certificates of Eligibility for auditing service business, Certificates of Audit Practice Registration, inspection and quality control of audit services, disciplinary actions, or administrative sanctioning in independent auditing activities.
Legal basis: Article 13, Law on Independent Auditing 2011.
