THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, May 23, 2022
Approving the Accounting-Auditing Strategy through 2030
THE PRIME MINISTER
Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;
Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Prime Minister’s Decision No. 368/QD-TTg of March 21, 2022, approving the Financial Strategy through 2030;
At the proposal of the Minister of Finance,
Article 1. To approve the Accounting-Auditing Strategy through 2030 (below referred to as the Strategy) with the following principal contents:
1. Accounting-auditing is an important tool for economic management with the function of establishing a system of economic-financial-budgetary information to meet the requirements of the State’s administration and economic decision as well as requirements of units, organizations and enterprises. Hence, it is a need to complete and improve the quality of the accounting-auditing information system toward publicity and transparency that provides truthful and adequate economic-financial information and data in the national economy.
2. It is necessary to set up the system of consistent policies in order to promote the development of comprehensive, transparent, efficient and effective accounting-auditing activities in conformity with international practices and Vietnam’s conditions as well as the process of digital transformation; to remove difficulties and obstacles in implementation; to attach importance to the development of high-quality human resources and improvement of service quality to meet the requirements of intensified international integration; to pay attention to developing and raising the position of accounting-auditing associations.
3. To enhance and raise the role of state management of accounting-auditing activities, particularly the planning, implementation, inspection of law enforcement, and supervision of accounting-auditing activities to ensure the effectiveness, efficiency and lawfulness, protect interests of the State and lawful rights and interests of related agencies, organizations and individuals.
II. OVERALL OBJECTIVES
To complete the system of accounting-auditing regulations to ensure a strict, effective, efficient and synchronous system of accounting-auditing standards in conformity with international practices and Vietnam’s conditions. To enhance the role of state management, step up activities of professional organizations, attach importance to the development of the service market and human resources in the field of accounting-auditing on par with those of regional countries, thereby improving the quality of the system of economic-financial-budgetary information to be more open and transparent that truthfully provides economic-budgetary information and data in the national economy so as to meet the requirements of management, administration and decision-making of state management agencies as well as requirements of enterprises, units and organizations. To speed up international integration and cooperation with international accounting-auditing institutions, and establish close relationships and facilitate mutual recognition between Vietnam and other countries in the region and the world.
III. SPECIFIC OBJECTIVES
1. Completing the system of accounting-auditing regulations
In 2024, to submit to the National Assembly a draft Law Amending and Supplementing the Accounting Law and a draft Law Amending and Supplementing the Law on Independent Audit for consideration and opinion, ensuring that the provisions of these laws are consistent and conformable with international practices and Vietnam’s conditions, while enhancing the role and responsibilities of enterprises, units, organizations and individuals in the provision of accounting-auditing information.
2. Promulgating, publicizing and updating the system of accounting standards and auditing standards
To increase the compatibility between financial mechanisms and accounting standards; to establish a legal framework for the application of international financial reporting standards (IFRS) according to an appropriate roadmap, and update the system of Vietnam’s financial reporting standards (VFRS), independent audit standards, internal audit standards and professional methods in conformity with international practices and Vietnam’s conditions; to ensure the comparability of economic-financial information among enterprises and organizations in the economy; to publicize the system of Vietnam’s public sector accounting standards based on international public sector accounting standards for application in accordance with Vietnam’s law.
3. Raising the efficiency of management and supervision of accounting-auditing activities
a/ To increase the capacity and efficiency of accounting-auditing management and supervision agencies in managing and supervising activities of accounting units and accounting-auditing service providers.
b/ To intensify inspection and supervision and apply appropriate sanctions to ensure law compliance by accounting units and accounting-auditing service providers so as to raise the quality of financial statements and accounting-auditing services.
4. Improving the quality of human resources and the accounting-auditing service market
To develop the accounting-auditing service market; to apply solutions to raise the quality of accounting services and auditing services; to set orientations in terms of the scale and quantity of accounting-auditing service providers to meet practical requirements through improving the mechanisms and professional practice conditions; to identify objects to be audited practically and efficiently and ensure that by 2025, all large-scale enterprises and units will, regardless of their types of operation and forms of ownership, have their financial statements audited; to adopt policies to increase the number and quality of the contingent of accountants and auditors to meet the demand for high-quality human resources in the context of international integration.
5. Developing accounting-auditing organizations
To adopt incentive policies for accounting-auditing organizations in order to unify and improve the operational capacity of such organizations; to proactively and closely coordinate with professional organizations in formulating and implementing the law on accounting-auditing as well as inspecting and supervising law compliance by certified public accountants.
6. Promoting international integration in accounting-auditing activities
To review, improve and strengthen cooperation frameworks and agreements with important partners such as financial institutions, international professional organizations and state management agencies in charge of accounting-auditing in comprehensive strategic partner countries, strategic partners and traditional partners of Vietnam; to intensively develop and improve the substantive efficiency of programs on cooperation with such organizations, and establish close relationships and facilitate mutual recognition between Vietnam and other countries in the region and the world.
7. Implementing digital transformation in the field of accounting-auditing
To speed up the application of information technology in line with the process of digital transformation in building the legal framework and organizing the implementation thereof at units; to develop a database on accounting-auditing to serve units’ operation and accounting-auditing management and supervision.
IV. MAJOR TASKS AND SOLUTIONS
1. Promulgating the Accounting Law and the Law on Independent Audit
a/ To review and evaluate the implementation of the Accounting Law and the Law on Independent Audit; to study formulating the Accounting Law and the Law on Independent Audit through supplementing, amending or replacing the current laws based on the approach to international practices associated with the process of digital transformation and ensuring conformity with Vietnam’s conditions, and solve existing problems to continue formulating and improving the legal framework on accounting-auditing.
b/ To formulate and promulgate legal documents guiding the above Laws, ensuring the concretization of provisions for organization of implementation thereof in accordance with the Laws; to issue appropriate documents to publicize the application of IFRS; to promulgate, and guide the implementation of, VFRS; to publicize, and guide the implementation of, Vietnam’s public sector accounting standards; to promulgate, and guide the implementation of, Vietnam’s independent audit and internal audit standards.
c/ To promulgate principles and regulations on accounting-auditing serving financial and securities markets and other services; and serving the disclosure of financial statements of listed companies and other public-interest companies according to IFRS; to manage professional practice and business conditions within a legal framework that is complete and meets practical requirements to ensure service quality.
d/ To standardize regulations on quality inspection and supervision applicable to accounting-auditing services; to stipulate sanctions for handling violations to ensure deterrence and increase responsibilities of related agencies, units, organizations and individuals; to improve institutions and legal frameworks for inspection and supervision of financial statements and the observance of accounting-auditing laws to ensure the synchronicity, completeness and consistency among agencies in charge of inspection and supervision.
2. Promulgating and publicizing systems of accounting standards and auditing standards
a/ To determine a reporting framework suitable to each type of enterprises in order to raise the efficiency of financial-accounting information; to apply IFRS in Vietnam according to a roadmap set by the Ministry of Finance for enterprises wishing to apply and eligible for the application of such standards; to develop, and organize the implementation of, VFRS in conformity with international practices and Vietnam’s conditions in replacement of the system of Vietnam’s corporate accounting standards; to promulgate accounting guiding documents for medium-, small- and micro-sized enterprises.
b/ To publicize the system of Vietnam’s public sector accounting standards based on international public sector accounting standards and in line with the reform of public finance and state budget management of Vietnam. The system of Vietnam’s public sector accounting standards must serve as a consistent foundation for making accounting records, as the standard and format for compiling and presenting financial information of accounting units of the state sector and financial statements of the State and local administrations.
c/ To update, promulgate and apply the system of independent audit standards and other professional standards in conformity with international practices that meet practical requirements and suit Vietnam’s conditions; to study and update internal audit standards, promulgate appropriate legal documents, and continue formulating and publicizing documents guiding the implementation of internal audit activities in enterprises, provincial-level People’s Committees, ministries, ministerial-level agencies, government-attached agencies, and large-scale public non-business units.
3. Enhancing the capacity of accounting-auditing management and supervision agencies and the efficiency of inspection and supervision of the observance of accounting-auditing laws
a/ To adopt appropriate solutions to attract high-quality human resources to efficiently perform the tasks of accounting-auditing management and supervision; to study international experiences and implement appropriate plans to organize operation of such agencies after the model of seeking accounting-auditing consultations in order to make decisions in accordance with international practices, Vietnam’s laws and the agencies’ practical conditions.
b/ To renew and effectively implement the contents, methods and conditions for the management and supervision of accounting-auditing activities; to intensify coordination with agencies and units tasked to inspect and supervise financial statements and the observance of accounting-auditing laws; to coordinate with professional organizations, training institutions and experts with experiences in accounting-auditing practice to boost professional training in accounting-auditing, foreign languages, skills in inspecting and supervising financial statements, and the observance of accounting-auditing laws.
c/ Based on their functions and tasks, to ensure sufficient human resources for supervising how enterprises and organizations in the state sector and enterprise sector observe accounting-auditing laws; to attach importance to the mechanism for supervising how listed companies and other public-interest companies observe accounting standards; to create conditions for improving the efficiency of management and supervision of the accounting-auditing service market; to strictly handle violations of accounting-auditing standards and professional code of ethics in accordance with law.
d/ To concretize responsibilities and obligations of enterprises, accounting units and individuals to increase publicity and transparency of financial situation, and ensure equal rights of investors and related parties in access to information of financial statements and other financial information.
dd/ To strengthen the inspection and supervision of how enterprises, accounting units and accounting-auditing service providers observe laws and professional standards and organize information systems and use accounting-auditing software; to effectively implement regulations on publicity and transparency of economic-financial information of enterprises, accounting units, agencies and economic organizations with attention paid to public-interest units.
e/ To intensify the inspection and guide the performance of internal audit activities at enterprises, provincial-level People’s Committees, ministries, ministerial-level agencies, government-attached agencies and large-scale public non-business units under the Government’s regulations and the Ministry of Finance’s guidance.
4. Developing the accounting-auditing service market
a/ To study and appropriately identify entities required to have their financial statements independently audited; to specify criteria for enterprises required to have their annual financial statements audited and ensure transparency of financial-accounting information in order to increase service quality and the efficiency of publicity and transparency of economic and financial activities.
b/ To determine criteria for public-interest units in the direction of adding necessary entities together with setting stricter and more effective requirements on publicity and transparency of financial statements to ensure public interests and sustainable economic development; to study and identify entities required to have their annual financial statements audited that are large-scale public non-business units, particularly public non-business units practicing autonomy in both investment expenditures and recurrent expenditures, and public non-business units practicing autonomy in recurrent expenditures.
c/ To establish criteria for scale, quantity and quality of services of auditing firms and accounting service providers based on practical requirements, through improving mechanisms and professional practice conditions; to increase the quantity and quality of accountants and auditors; to effectively implement solutions for service providers in order to improve the quality of accounting-auditing services.
d/ To complete and implement legal provisions, create foundations and conditions for the negotiation of and accession to international agreements and mutual recognition of accounting-auditing services with other countries in the region and the world.
dd/ To implement solutions so as to improve the quality of price appraisal services and other services; to build an information system and database for determining financial indicators.
5. Developing professional associations
a/ Based on the regulations on associations and accounting-auditing, to formulate and promulgate legal provisions regarding responsibilities and operation of accounting-auditing organizations; to develop a model of unified, self-managed and professional organizations according to international practices to attract a large number of members.
b/ To raise the effectiveness of participation of professional associations in formulating and giving criticism on mechanisms and policies; to improve the capacity in managing and supervising how accountants and auditors observe professional standards, standards and provisions on professional ethics; to inspect service quality and provide further training in professional knowledge and professional ethics to certified public accountants.
c/ To study the transfer of professional activities in accordance with the law and suitable with the capacity of professional associations according to an appropriate roadmap, adhering to the principle of stability and taking responsibility before law.
d/ To expand cooperation with professional organizations in the region and the world in order to increase the operational efficiency of professional associations, thus contributing to promoting international integration in accounting-auditing activities.
6. Developing human resources for accounting-auditing
a/ To renew contents, programs and methods to improve the quality of training and further training of human resources for accounting-auditing and combine theory and practice in association with the process of digitization and digital transformation in accounting-auditing. To pay attention to high-quality accounting-auditing staffs to meet the demands of enterprises, accounting units and other organizations in the whole economy in the context of intensive and extensive international integration.
b/ To renovate learning methods, organization of tests and grant of auditor and accountant certificates to ensure knowledge and skills meeting requirements and conformable with international practices, and ensure conditions for mutual recognition in the region and the world. By 2030, the number of persons granted auditor certificates will reach 15,000.
c/ To raise the sense of discipline, professional qualifications and professional ethics of accountants and auditors by amending regulations on training contents and forms and knowledge updating; to pay attention to and promote organization of training programs with grant of international professional certificates in order to approach knowledge and practice skills according to international practices.
d/ To renew training and further training contents, forms and programs for chief accountants; to formulate contents and programs to annually update professional knowledge for chief accountants of public-interest units.
dd/ To adopt solutions to support the improvement of professional qualifications and activities of accountants working in medium-, small- and micro-sized enterprises.
7. Enhancing and expanding international cooperation
a/ To promote the relations and take advantage of the assistance of international accounting-auditing organizations and non-governmental organizations in research and exchange of experiences in accounting-auditing; to provide technical assistance to renovate models of managing accounting-auditing profession as well as other accounting-auditing techniques.
b/ To study models of developed countries for application in Vietnam in the organization and management of inspection and supervision of financial statements; development and application of financial reporting standards; building of accounting-auditing techniques; development of accounting-auditing services; and completion of models of accountant and auditor training and testing and grant of accountant and auditor certificates.
c/ To study and implement solutions to strongly speed up international integration in accounting-auditing activities; and integration of the accounting-auditing service market with other countries in the region and the world.
d/ To participate as an official member in independent audit management forums held in the region and the world. To take part in the development of IFRS and public sector accounting standards of the International Accounting Standards Boards. To continue supporting professional organizations in fully performing their role as members of the International Federation of Accountants (IFAC), the ASEAN Federation of Accountants (AFA) and the Confederation of Asian and Pacific Accountants (CAPA).
8. Applying information technology and carrying out other activities
a/ Technology application
- To continue reviewing, cutting and simplifying administrative procedures to create favorable conditions and save time and costs for enterprises and accounting units; accounting-auditing service providers and certified public accountants.
- To effectively apply information technology development achievements to meet the requirements of digitalization and digital transformation in accounting-auditing activities in state agencies, enterprises and accounting units.
b/ Other activities
- To build a data system serving the management and surveillance of the accounting-auditing service market; to connect information among agencies managing and supervising accounting-auditing activities and the securities market; to ensure the disclosure of information in a timely and transparent manner on the contingent of accounting-auditing enterprises as well as certified public accountants.
- Related units shall coordinate with one another in organizing the system of financial information and data of enterprises and accounting units to serve the exploitation of data through public services by organizations and individuals to ensure that official information is used in economic relations and transactions.
- To organize the accounting-finance apparatus at state accounting units in a streamlined and efficient manner; to adopt solutions to improve the quality of the compilation and presentation of state financial statements, improve the accountability of units from the central to local levels in managing and using state assets and resources.
V. IMPLEMENTATION RESPONSIBILITY
1. The Ministry of Finance shall:
a/ Promulgate a plan on implementation of the Strategy according to roadmaps suitable to the 2021-2025 and 2026-2030 periods; and assume the prime responsibility for organizing the implementation of such plan.
b/ Arrange resources to implement the Strategy in accordance with law; implement specific measures concerning human resources and other conditions to improve the capacity and efficiency of inspection and supervision of the observance of accounting-auditing laws.
c/ Guide and urge related ministries, localities, agencies and units to develop and organize activities relating to the implementation of the Strategy in conformity with their assigned functions and tasks.
d/ Assume the prime responsibility for, and coordinate with related ministries, localities, agencies and units in, urging and inspecting the implementation of the Strategy; and evaluate the results of implementation of the Strategy.
2. Ministries, sectors and localities shall:
a/ Within the ambit of their state management functions and tasks, direct and organize the performance of accounting-auditing activities, urge, inspect, and handle violations of the Strategy’s relevant contents in accordance with law.
b/ Within the ambit of their state management functions and tasks, coordinate with the Ministry of Finance and related agencies in implementing the Strategy’s relevant contents in accordance with law.
3. Training institutions and professional organizations shall:
a/ Renovate programs, textbooks, and methods of training and further training of cadres, students and holders of accounting-auditing titles as suitable to mechanisms, policies and accounting standards and regimes.
b/ Coordinate with the Ministry of Finance in studying and formulating documents and Vietnam’s accounting standards, professional code of ethics in accounting-auditing; and coordinate with one another in implementing legal documents on accounting-auditing.
c/ Professional organizations shall provide further training to update knowledge for certified public accountants; take part in organizing tests for grant of accountant and auditor certificates under the Ministry of Finance’s regulations; and coordinate with the Ministry of Finance in inspecting and controlling accounting service quality when requested.
4. Enterprises, economic organizations, agencies and units shall:
a/ Coordinate with one another in studying and absorbing international practices of accounting-auditing and actively take part in studying and formulating documents and standards on corporate accounting.
b/ Organize the implementation of legal provisions on accounting-auditing in their fields of operation; promptly report problems and difficulties and actively participate in the study and drafting of documents, standards and regimes on corporate accounting.
Article 2. This Decision takes effect on the date of its signing.
Article 3. Ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision.-
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI
 Công Báo Nos 389-390 (01/6/2022)