What are fines for enterprises if violating the regulations regarding using independent audit services?
(Decree No. 41/2018/NĐ-CP)
Section 5. VIOLATIONS AGAINST REGULATIONS ON AUDITED UNITS
Article 53. Penalties for violations against regulations on selection of auditing firms and audit practitioners
1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on units hiring auditing firms if the auditing firm does not carry out auditing works in accordance with regulations of law.
2. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed on units hiring auditing firms that does not meet all requirements for provision of audit services as specified in regulations of law.
3. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on audited units for failure to undergo compulsory audit for financial statements, settlement reports of project completion, consolidated and general financial statements, and other auditing works as specified in regulations of the Law on Independent Audit and other relevant laws.
Article 54. Penalties for violations against regulations on contracts for audit of annual financial statements
1. A warning shall be imposed on enterprises and organizations which are required to have their annual financial statements audited entering into contracts for such audit without sufficient contents.
2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on enterprises and organizations which are required to have their annual financial statements audited entering into contracts for such audit later than the specified deadline.
3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on enterprises and organizations which are required to have their annual financial statements audited entering into contracts for such audit after the audit is done.
4. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on enterprises and organizations which are required to have their annual financial statements audited failing to enter into contracts for such audit when auditing.
Article 55. Penalties for violations against regulations on audits
1. A fine shall be imposed on audited units for failure to explain or failure to explain sufficiently and punctually the qualified opinions in audit statements upon request of the competent authority.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for one of the following violations:
a) Refusing to provide necessary information and documents for auditing upon request of audit practitioners or auditing firms;
b) Bribing and colluding with audit participants and auditing firms to tamper with accounting documents, financial statements, audit documents and audit statements;
c) Threatening, taking revenge on, coercing audit participants in order to alter audit results;
d) Concealing illegal acts in finance and accounting;
đ) Obstructing auditing works and restricting the audit’s scope.
3. Remedial Measure:
Rectify false or misleading information in case of violations mentioned in Points b and c, Clause 2 of this Article.