Circular 76/2026/TT-BTC purchase professional liability insurance for certified public accountants or sett up reserve funds for occupational risks in independent audit activities

CIRCULAR

Guiding the purchase of professional liability insurance for certified public accountants or the setting up of reserve funds for occupational risks in independent audit activities

Pursuant to the Law on Independent Audit No. 67/2011/QH12, amended and supplemented under the Law No. 56/2024/QH15 Amending and Supplementing a Number of Articles of the Law on Securities, Accounting Law, Law on Independent Audit, Law on the State Budget, Law on Management and Use of Public Properties, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Handling of Administrative Violations;

Pursuant to the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade, amended and supplemented under Decree No. 166/2025/ND-CP;

At proposal of the Director of the Department of Accounting and Audit Management and Supervision;

The Minister of Finance hereby promulgates the Circular guiding the purchase of professional liability insurance for certified public accountants or the setting up of reserve funds for occupational risks in independent audit activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides for the purchase of professional liability insurance for certified public accountants or the setting up of reserve funds for occupational risks in independent audit activities under the Law on Independent Audit.

Article 2. Subjects of application

This Circular applies to certified public accountants, audit firms, and other related organizations and individuals.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Audit firms include audit firms and Vietnam-based branches of foreign audit firms that fully satisfy the conditions for provision of audit services as prescribed in the Law on Independent Audit.

2. Assurance services means assurance services prescribed in the Minister of Finance's Circular No. 69/2015/TT-BTC dated May 08, 2015, promulgating the Vietnam Framework for Assurance Engagements, and amending, supplementing or replacing documents (if any).

Chapter II

SPECIFIC PROVISIONS

Article 4. Audit firms’ obligations to purchase professional liability insurance for certified public accountants or set up reserve funds for occupational risks

Audit firms shall be obliged to purchase professional liability insurance for certified public accountants or set up reserve funds for occupational risks.

Article 5. Purchase of professional liability insurance for certified public accountants

1. Audit firms shall purchase professional liability insurance for certified public accountants in accordance with the law on insurance business.

2. Expenses for the purchase of professional liability insurance for certified public accountants shall be included in administrative expenses.

Article 6. Setting up reserve funds for occupational risks

1. At the end of each financial year, an audit firm shall set up a reserve fund for occupational risks at a rate of 1% of its assurance service revenue for that year.

2. The amount set aside for the reserve fund for occupational risks shall be included in administrative expenses.

3. The balance of the reserve fund for occupational risks shall not exceed 10% of the assurance service revenue of the current financial year.

Where the balance of the reserve fund for occupational risks exceeds 10% of the assurance service revenue of the current financial year, the audit firm shall reverse the excess and account for it as a reduction in administrative expenses.

4. An audit firm shall be responsible for developing and promulgating internal regulations on the management and use of its reserve fund for occupational risks.

Article 7. Continuous purchase of professional liability insurance for certified public accountants or setting up of reserve funds for occupational risks

Throughout the period during which an audit firm satisfies the conditions for provision of audit services, it shall ensure the continuous and uninterrupted purchase of professional liability insurance for certified public accountants or setting up of a reserve fund for occupational risks.

Article 8. Compensation for damage caused to auditees and users of audit results

Where an audit firm is required to compensate for damage caused by its fault to auditees and users of audit results, the audit firm shall be indemnified by an insurance enterprise or a branch of a foreign non-life insurance enterprise in accordance with Vietnamese law on insurance business under the concluded insurance contract, or shall use its reserve fund for occupational risks to compensate for such damage.

Where the amount of compensation payable exceeds the indemnity paid by the insurance enterprise or the available balance of the reserve fund for occupational risks, the excess shall be included in administrative expenses after deducting any compensation recovered from the organization or individual causing the damage (if any), as prescribed by law.

Article 9. Tax obligations

Tax obligations shall be determined in accordance with the law on taxation.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 10. Effect

1. This Circular takes effect from September 01, 2026.

2. Point 5, Section B, Part II of the Minister of Finance’s Circular No. 64/2004/TT-BTC dated June 29, 2004, guiding the implementation of a number of articles of the Government Decree No. 105/2004/ND-CP dated March 30, 2004, on independent audit, is repealled.

Article 11. Implementation organization

The Director of the Department of Accounting and Audit Management and Supervision, heads of relevant units under the Ministry of Finance, audit firms, and related organizations and individuals shall implement this Circular./.