The Government has just issued Decree No. 228/2025/ND-CP regulating administrative sanctions in the field of independent auditing.
There are two main forms of punishment: warning and fine. For each administrative violation in the field of independent auditing, individuals and organizations that violate must suffer one of the two main forms of punishment.
The maximum fine for an administrative violation in the field of independent auditing is VND 1,000,000,000 for individuals and VND 2,000,000,000 for organizations. For organizations with the same violation, the fine is twice the fine for individuals.
Depending on the nature and severity of the violation, organizations and individuals who commit administrative violations in the field of independent auditing will also be subject to additional penalties such as: Revoking the right to use the Certificate of Registration of Auditing practice for a period of 1 month to 24 months; revoking the right to use the certificate of eligibility to conduct auditing services or suspending auditing service business for a period of 1 month to 24 months; confiscating exhibits of administrative violations and means used for administrative violations.
The Decree also specifically stipulates the forms of sanctions and fines in the field of independent auditing for violations of regulations on certification exams and updating knowledge for auditors; regulations on registration to practice auditing; regulations on business conditions for auditing services and auditing services; regulations on auditing activities; regulations on audited units; regulations on the provision and use of cross-border auditing services; regulations on notification and reporting; regulations on controlling the quality of auditing services.
The Decree stipulates the penalty for 3 violations related to auditing practice registration. For violations of regulations on management and use of auditing certificates, the Decree stipulates:
1. Fine from VND 10,000,000 to VND 20,000,000 for individuals who commit one of the following acts:
a) Deleting or correcting the content of the Auditor Certificate;
b) Leasing, borrowing, or using an auditor's Certificate from another organization or individual other than the unit they are working for to register for auditing practice;
c) Register to practice auditing at the unit where you actually do not work under a full-time labor contract.
2. Fines from VND 30,000,000 to VND 40,000,000 for enterprises that hire, borrow, or use the Auditor Certificate of an individual who does not work or does not work for the entire working time at their unit to register for auditing practice.
3. Fines from VND 40,000,000 to VND 60,000,000 for forging auditing certificates that are not up to the level of criminal prosecution according to the provisions of the Penal Code.
4. Additional penalty:
a) Confiscation of exhibits and means of administrative violation for the acts specified in Point a, Clause 1 and Clause 3 above;
b) revoke the right to use the Auditing practice registration certificate within 12 months to 24 months from the effective date of the penalty decision for the practicing accountant who commits the violation of the provisions of Point b, Clause 1 above.
