The finance ministry has issued rules on audit firms that can sign off the books of companies seeking stock market listings and other securities market work.
Domestic auditing companies must have a chartered capital of at least two billion dong and foreign auditing companies of US$300,000 legal capital. The firms must employ more than 10 auditors, have at least five years experience in the field and have 30 clients each year at minimum. This is a part of the new regulation released by finance ministry on selecting auditing firms to audit companies issuing securities, company IPOs, and stock brokerages.
Accordingly, auditors at the selected auditing firms have to meet following requirements: certified by the finance ministry and have a minimum two years experience as an accredited auditor. Foreign auditors have to have at least two years working in Vietnam as auditors. Auditors are not allowed to hold shares in the companies they audit, nor have commercial or other relations with the companies they audit.
At present, Vietnam has four foreign auditing firms and nearly 700 local auditing firms. Under this new regulation, only 20–25% of the auditing firms will be able to satisfy the new finance ministry rules. The finance ministry has certified 650 auditors.