Circular 39/2020/TT-BTC amending reporting regime in fields of independent audit

CIRCULAR

On amending and supplementing the reporting regime specified in a number of Circulars in the fields of accounting and independent audit

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Pursuant to Law on Independent Audit No. 67/2011/QH12 dated March 29, 2011;

Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Pursuant to the Government s Decree No. 09/2019/ND-CP dated January 24, 2019, on prescribing reporting regimes applicable to state administrative agencies;

Pursuant to the Government’s Decree No.87/2017/ND-CP dated July 26, 2017, on defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Accounting and Auditing Regulations;

The Minister of Finance hereby promulgates the Circular on amending and supplementing the reporting regime specified in a number of Circulars in the fields of accounting and independent audit.

Article 1. To amend and supplement a number of articles of the Circular No. 199/2011/TT-BTC dated December 30, 2011 on guiding the organization of training and grant of certificates of training chief accountants as follows:

1. To amend and supplement Clause 2, Article 8 as follows:

“2. The facilities providing training and retraining Chief Accountant courses are responsible for monitoring and managing the certificate’s embryos to be issued, and send a report on the use of embryos of “Certificates of training Chief Accountant”. Such report must include the following contents:

a) Report s name: Report on the use of the embryo of “Certificates of training Chief Accountant”;

b) Contents of the report requirements:

- Number of pre-existing embryos;

- Number of the embryos imported in the period(number of the certificate’s embryos received from the Ministry of Finance);

- Number of the embryos exported in the period(number of the used certificate’s embryos);

- Number of the destroyed embryos(Due to wrong content recording; Quantity of damaged embryos during storage, preservation; etc.);

- Number of existing embryos in the last period(Number of embryos which are not used);

c) Subject to report: The facilities providing training and retraining Chief Accountant courses.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports

The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than July 31 of the reporting year for the report of the first 6 months of the year; No later than January 30 of the following year for the report of the last 6 months of the year.

g) Frequency of report implementation: Reports shall be made every 06 months.

h) Closing date of data: The time of closing data of the first 6 months is from January 01 to June 30 of the reporting year. The time of closing data of the last 6 months is from July 01 to December 31 of the reporting year.

i) Forms of the report outline: Shall be made according to Appendix No. 001.

k) Report data templates:Shall be made according to Appendix No. 001.

l) Guidance for the process of report implementation: On an annual basis, the facilities providing training and retraining Chief Accountant courses shall summarize information according to forms and send it to the Ministry of Finance within the prescribed time limit.”

2. To add Appendix No. 002 attached to this Circular.

Article 2. To amend and supplement a number of articles of the Circular No. 292/2016/TT-BTC dated November 15, 2016 on providing guidance on updating annual knowledge for practicing accountants and registrants in accounting services as follows:

1. To amend Clause 2, Article 12 as follows:

“2. Within 10 days at the latest, from the date on which the dossier is received according to Clause 1 of this Article, the Ministry of Finance shall send a written notice to the practicing accountants about whether the time for updating knowledge is delayed or not.

The practicing accountant who has the time for updating knowledge delayed in this year shall continue to practice in the following year if he/she completes the time for updating knowledge before December 15 of this year, and notify in writing or electronic copy to the Ministry of Finance about the completion of the time for updating knowledge before December 25 of such year. The time for updating knowledge has been calculated for this year shall not be used for calculating for the following year.

If at the end of December 15 of this year, the practicing accountant fails to complete the time for updating knowledge as prescribed or past the time limit (December 25 of this year), the Ministry of Finance has not received the notice on completion of the lacking hours for updating knowledge yet, the practicing accountant shall be suspended from accounting service practice from January 01 to December 31 of the following year.”

2. To replace Appendix No. 03/CNKT by Appendix No. 002 attached to this Circular.

3. To amend Point b, Clause 1, Article 14 as follows:

"b) The List of participants in the class of updating knowledge shall be made according to the form specified in Appendix No. 002 attached to this Circular."

4. To amend Clause 4, Article 15 as follows:

“4. Within 05 working days at the latest, after each class of updating knowledge, the List of participants of such class which is made in writing or electronic copy according to the form specified in Appendix No. 002 attached to this Circular shall be sent to the Ministry of Finance.”

Article 3. To amend and supplement a number of articles of the Circular No. 297/2016/TT-BTC dated November 15, 2016 on the grant, management and use of Certificates of eligibility for provision of accounting services as follows:

1. To amend and supplement Clause 8, Article 12 as follows:

“8. To send reports on the maintenance of conditions for the provision of accounting services with the following contents:

a) Report s name: Report on the maintenance of conditions for the provision of accounting services.

b) Contents of the report requirements: To declare the maintenance of conditions for the provision of accounting services, including:

- Serial number and date of the first and latest issuance of the Business Registration Certificate or Investment Registration Certificate or other equivalent documents;

- Serial number and date of the first and latest issuance of the Certificate of eligibility for provision of accounting services;

- Information about full name, title, hometown, date of birth, number of identity card/citizen identification card/passport, place of permanent residence, phone number, email, the serial number of the certificate of registration for practicing accounting services of the legal representative;

- Information about Director/General Director (if the Director/General Director is not the legal representative) shall be similar to information about the legal representative;

- A List of limited partners and general partners includes information on full name, year of birth, title, capital contribution ratio and certificate of accounting service practice registration (serial number of certificate and duration);

- A List of practicing accountants with full-time labor contracts in enterprises conducting accounting service business to the reporting time, including information on full name, year of birth, title and certificate of accounting service practice registration (serial number of certificate and duration);

- Charter capital at the reporting time, including information on total charter capital up to the time of reporting (commitment capital contributed by practicing accountants, contributed capital of practicing accountants up to the time of reporting and contributed capital of participants being organizations);

- The purchase of occupational liability insurance, including information on insurance service providers, the insurance premium and the List of practicing accountants who have bought occupational liability insurance for the year;

- Law observance: To specify acts of violations against the law on accounting, other violations and the applied sanctions, if any;

c) Subject to report: Enterprises conducting accounting service business.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports

The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than August 31 every year or upon request of the competent authority.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From August 16 of the previous year to August 15 of the reporting year or to the requested time.

i) Forms of the report outline: According to Appendix 6 attached to this Circular.

k) Report data templates:According to Appendix 6 attached to this Circular.

l) Guidance for the process of report implementation: An enterprise conducting accounting service business shall make an annual report on the maintenance of conditions for the provision of accounting services and send it to the Ministry of Finance according to the time limit as prescribed."

2. To amend and supplement Clause 9, Article 12 as follows:

“9. To send reports on the operation with the following contents:

a) Report s name: Report on the operation of the year (from January 01 to December 31).

b) Contents of the report requirements:

A report on the operation in the year of an enterprise conducting accounting service business including the following contents:

- The employee situation, including information on the total number of employees at enterprise up to December 31; the number of people with Vietnamese and foreign certification of accountants and auditors; a number of people being granted certificates of registration for practicing accounting service in the enterprise;

- The revenue situation, including information on revenue structure according to service types and revenue structure according to customers;

- The business performance, including information on the charter capital, profit rates and the remittance to the State budget;

- Changes in a year, including changes in enterprise’s name, legal representative;  form of ownership, conversion of type, division, separation, merger, consolidation or increase or decrease of accountants registered to practice;

- Advantages, disadvantages and recommendations, proposal or information for the Ministry of Finance in the accounting service business of an enterprise;

c) Subject to report: Enterprises conducting accounting service business.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports

The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: Before April 10 of the following year.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From January 01 to December 31 of the reporting year.

i) Forms of the report outline: According to Appendix 7 attached to this Circular.

k) Report data templates:According to Appendix 7 attached to this Circular.

l) Guidance for the process of report implementation: An enterprise conducting accounting service business shall make an annual report on the operation according to forms and send it to the Ministry of Finance according to the time limit as prescribed.”

Article 4. To amend and supplement a number of articles of the Circular No. 150/2012/TT-BTC dated 9/12/2012 on guiding the update of annual knowledge for auditors registered for audit practice as follows:

1. To amend and supplement Clause 2, Article 12 (amended and supplemented by Clause 4, Article 1 of the Circular No. 56/2015/TT-BTC dated April 23, 2015 on amending and supplementing a number of articles of the Circular No. 150/2012/TT-BTC dated September 12, 2012 of the Ministry of Finance on guiding the update of annual knowledge for auditors registered for audit practice) as follows:

“2. Within 07 days at the latest, from the date on which the application and relevant documents are received according to Clause 1 of this Article, the Ministry of Finance shall send a written notice to the practicing auditors about whether the time for updating knowledge is delayed or not.

The practicing auditor who has the time for updating knowledge delayed in this year shall continue to practice in the following year if he/she completes the time for updating knowledge before December 15 of this year, and notify in writing or electronic copy to the Ministry of Finance about the completion of the time for updating knowledge before December 25 of such year.

If at the end of December 15 of this year, the practicing auditor fails to complete the time for updating knowledge as prescribed or past the time limit (December 25 of this year), the Ministry of Finance has not received the notice on completion of the lacking hours for updating knowledge yet, the practicing auditor shall be suspended from audit service practice from January 01 to December 31 of the following year.”

2. To replace Appendix No. 04/CNKT by Appendix No. 003 attached to this Circular.

3. To amend Point c, Clause 1, Article 14 as follows:

“c) The List of participants in the class of updating knowledge (which is me made according to the form specified in Appendix No. 003 attached to this Circular).”

4. To amend and supplement Clause 4, Article 15 as follows:

“4. Within 05 working days at the latest, after each class of updating knowledge, the List of participants of such class (which is made in writing or electronic copy according to the form specified in Appendix No. 003 attached to this Circular) shall be sent to the Ministry of Finance.”

5. To amend and supplement Clause 5, Article 15 as follows:

“5. To send the report on summing up the result of organizing knowledge update courses to auditors with the following contents:

a) Report s name: Report on summing up the result of organizing knowledge update courses to auditors.

b) Contents of the report requirements: To summarize the result of organizing knowledge update courses to auditors, to be specific:

- Number of organized classes;

- Number of auditors have participated;

- Summary of the time for updating knowledge of auditors;

- Self-evaluation on the course organization;

- The recommendation with the Ministry of Finance about the organization of classes of updating knowledge;

c) Subject to report: Professional associations, training institutions or auditing enterprises approved to organize courses to update knowledge by the Ministry of Finance.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than August 25 of the reporting year.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From August 16 of the previous year to August 15 of the reporting year.

i) Forms of the report outline: According to Appendix No. 06/CNKT attached to this Circular.

k) Report data templates:According to Appendix No. 06/CNKT attached to this Circular.

l) Guidance for the process of report implementation: On an annual basis, professional associations, training institutions or auditing enterprises approved to organize courses to update knowledge by the Ministry of Finance shall summarize the result of organizing classes for updating knowledge for auditors according to forms and send it to the Ministry of Finance according to the time limit as prescribed.”

Article 5. To amend and supplement a number of articles of the Circular No. 203/2012/TT-BTC dated November 19, 2012 on the order and procedures for the grant, management and use of certificates of eligibility for provision of audit services as follows:

1. To amend and supplement Clause 7, Article 17 as follows:

“7. To send reports on the maintenance of conditions for the provision of audit services with the following contents:

a) Report s name: Report on the maintenance of conditions for the provision of audit services.

b) Contents of the report requirements: To declare the maintenance of each condition for the provision of audit service in a year of the auditing enterprise. To be specific:

- Serial number and date of the latest issuance of Business Registration Certificate (or Enterprise Registration Certificate or Investment Certificate);

- Serial number and date of the first issuance and the latest issuance for modification or the latest re-issuance of the Certificate of eligibility for provision of audit services;

- A list of practicing auditors with labor contracts and working on a full-time basis at the auditing enterprises up to the reporting time.

- Charter capital at the reporting time, including:

+ Contributed capital of practicing auditors;

+ Contributed capital of members being organizations; Full name and Certificate of registration for audit practice of the legal representative of members being organizations;

- Owner s equity in the statements on the financial status of the year closest to the time of reporting;

- The purchase of occupational insurance and setting up of an occupational risk reserve fund;

- Law observance.

c) Subject to report: The auditing enterprises.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than October 31 of the reporting year or upon request of the competent authority.

g) Frequency of report implementation: Report shall be made periodically every year or upon request.

h) Closing date of data: From October 01 of the previous year to September 30 of the reporting year or to the requested time.

i) Forms of the report outline: According to Appendix IX attached to this Circular.

k) Report data templates:According to Appendix IX attached to this Circular.

l) Guidance for the process of report implementation: On an annual basis, the auditing enterprise shall summarize information on conditions for the provision of audit service according to forms and send it to the Ministry of Finance according to the time limit as prescribed."

2. To amend and supplement Clause 8, Article 17 as follows:

“8. To send reports on the operation of the year with the following contents:

a) Report s name: Report on the operation of the year.

b) Contents of the report requirements: To report data and the most basic information on the provision of audit service in the year, to be specific:

- Employees’ status;

- Revenue status;

- Business performance;

- Changes in the year;

- Advantages, disadvantages and recommendations, proposal or other information that such an enterprise must provide to the Ministry of Finance (if any).

c) Subject to report: The auditing enterprises.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than April 10 of the following year.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From January 01 to December 31 of the reporting year.

i) Forms of the report outline: According to Appendix X attached to this Circular.

k) Report data templates:According to Appendix X attached to this Circular.

l) Guidance for the process of report implementation: On an annual basis, the auditing enterprise shall summarize information on the business activities according to forms and send it to the Ministry of Finance according to the time limit as prescribed.”

Article 6. To amend and supplement a number of articles of the Circular No. 202/2012/TT-BTC dated November 19, 2012 on the order and procedures for the grant, management and use of certificates of eligibility for provision of audit services as follows:

1. To amend and supplement Clause 1, Article 14 as follows:

“1. To send reports on the maintenance of conditions for annual audit practice with the following contents:

a) Report s name: Reports on the maintenance of conditions for annual audit practice.

b) Contents of the report requirements: To declare the maintenance of each condition for registration for annual audit practice of practicing auditors, to be specific:

- Basic information of the practicing auditors;

- Serial number and issuance date of the auditor s certificate;

- Serial number, issuance date and duration of the Certificate of registration for audit practice;

- The time for updating knowledge from August 16 of the previous year to August 15 of the reporting year;

- The term of the full-time labor contract in an auditing enterprise;

- Whether or not a change in a labor contract makes the entire period of signing with the auditing firm in the year compared with the last time;

- The observance of the law on independent audit from August 16 of the previous year to August 15 of the reporting year.

c) Subject to report: Practicing auditors.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations).

dd) Methods of submitting and receiving reports The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than August 31 of the reporting year.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From August 16 of the previous year to August 15 of the reporting year.

i) Forms of the report outline: According to Appendix No. 10/DDKHN attached to this Circular.

k) Report data templates:According to Appendix No. 10/DDKHN attached to this Circular.

l) Guidance for the process of report implementation: On an annual basis, the practicing auditor shall declare information on the maintenance of conditions for audit practice according to forms and send it to the Ministry of Finance through the auditing enterprise according to the time limit as prescribed."

2. To amend and supplement Clause 3, Article 15 as follows:

“3. To submit a summary report on the maintenance of conditions for annual audit practice with the following contents:

a) Report s name: Summary on the maintenance of conditions for annual audit practice.

b) Contents of the report requirements: To summarize information on the maintenance of conditions for registration for audit practice in the year of practicing auditors in an auditing enterprise, to be specific:

- The knowledge updating and the full-time labor contract term in an auditing enterprise of practicing auditors from August 16 of the previous year to August 15 of the reporting year;

- The administrative violations against the law on independent audit from August 16 of the previous year to August 15 of the reporting year.

c) Subject to report: The auditing enterprises.

d) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations);

dd) Methods of submitting and receiving reports The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

e) The time limit for sending reports: No later than August 31 of the reporting year.

g) Frequency of report implementation: Report shall be made periodically every year.

h) Closing date of data: From August 16 of the previous year to August 15 of the reporting year.

i) Forms of the report outline: According to Appendix No. 11/DDKHN attached to this Circular.

k) Report data templates:According to Appendix No. 11/DDKHN attached to this Circular.

l) Guidance for the process of report implementation: An auditing enterprise shall prepare a summary report on the maintenance of conditions for annual audit practice from reports on the maintenance of conditions for annual audit practice of practicing auditors in such enterprise. Such a report shall be made according to forms as prescribed. An auditing enterprise shall submit the summary report on the maintenance of conditions for annual audit practice and the report on the maintenance of conditions for annual audit practice of each practicing auditor to the Ministry of Finance according to the time limit as prescribed.”

Article 7. To amend and supplement a number of articles of the Circular No. 157/2014/TT-BTC dated October 23, 2014 on audit service quality control as follows:

1. To amend and supplement Point c, Clause 1, Article 9 as follows:

“c) To submit the report on results of audit service quality self-inspection with the following contents:

(1) Report s name: Report on results of audit service quality self-inspection.

(2) Contents of the report requirements:

- General information on auditing enterprise;

- Organizations and employees of the auditing enterprise on December 31 of the reporting year;

- The training and knowledge updating for employees and auditors;

- Customers and provided services;

- Service charges;

- Working method.

(3) Subject to report: The auditing enterprises.

(4) The agency receiving reports: The Ministry of Finance (the Department of Accounting and Auditing Regulations);

(5) Methods of submitting and receiving reports: The periodic reports shall be presented in the form of paper documents of electronic copies, and be sent by one of the following methods:

- Sent directly;

- Sent by postal service;

- Send via e-mail system;

- Other methods in accordance with law provisions.

(6) The time limit for sending reports: No later than May 31 of the following year.

(7) Frequency of report implementation: Report shall be made periodically every year.

(8) Closing date of data: From January 01 to December 31 of the reporting year.

(9) Forms of the report outline: According to Appendix No 02 attached to this Circular.

(10) Report data templates: According to Appendix No 02 attached to this Circular.

(11) Guidance for the process of report implementation: On an annual basis, the auditing enterprise shall summarize information according to forms and send it to the Ministry of Finance according to the time limit as prescribed.”

2. To amend and supplement Clause 1, Article 24 as follows:

“1. Within a period of 30 days from the date on which the report of inspection results is signed, auditing enterprises subject to inspection must make a summary on remedying of the faults and execution of the Inspectorate’s proposals to the inspection agency. In case an auditing enterprise subject to inspection is a member of the Occupational organization in auditing, the summary on remedying of the faults and execution of the Inspectorate’s proposals must be submitted simultaneously to the Occupational organization in auditing.

The summary on remedying of the faults and execution of the Inspectorate’s proposals is a reference material used for the next inspection of audit service quality.”

Article 8. Effect

1. This Circular takes effect on July 01, 2020.

2. Any problems and difficulties arising in the course of implementation should be promptly reported to the Ministry of Finance for study, conformable amendment and supplementation./.

* All Appendices are not translated herein.