Auditing Activities in Vietnam Reaching to International Standards

Auditing Activities in Vietnam Reaching to International Standards

Auditing activities in Vietnam are being asked to seek measures to fill the gap and then to catch up with the levels seen in other regional and international countries. The recently established Vietnam Association of Certified Public Accountants (VACPA) aims to enhance the professionalism of auditors and accountants in Vietnam, making them able to adapt and work in the economic environment during integration. On April 15, 2005, on the occasion of the formation of the VACPA, Vietnam Business Forum Magazine’s reporter, had a cosy interview with Mr. Bui Van Mai, the chief of the Accounting and Auditing Department under the Ministry of Finance.

Can you tell us about the reasons for setting up of the VACPA at this time?

The Vietnam Accounting Association (VAA) and the Chief Accountant Club (CAC), set up in 1994, have considerably contributed to economic activities in Vietnam. Up to now, the Vietnam Accounting Association has some 8,000 formal members, eight branches in large provinces and cities like Hanoi, Haiphong, Danang and Ho Chi Minh City and eight sub-branches in ministries, branches, academies and companies. After over 10 years, the Vietnam Accounting Association has popularised accounting and auditing professionalism nationwide and attracted the participation of accountants and auditors.

However, the Vietnam Accounting Association lacks yardsticks to assess the profession and practicing ethics and internationally standardised principles for membership admission.

The foundation of the VACPA will give a new vital force to develop accounting and auditing activities thoroughly. The VACPA will be operated under internationally professional standards. This is one of the core reasons for the establishment of the VACPA.

Can you talk about some VACPA membership benefits?

The internationally standardised VACPA requires higher membership qualifications. Formal members are required to have obtained professional qualifications and practising certificates which are issued annually by the Ministry of Finance. The certificates and qualifications prove that members possess professional ethics, higher education graduation diplomas, five-year experience and success in the examination of eight subjects organised by the Ministry of Finance.

The VACPA plays an importance role in managing and overseeing the profession quality and practice ethics of accountants, auditors, accounting and auditing service enterprises; building and developing professional relations amongst its members, promoting international ties, assisting State organisations to work out and complete accounting and auditing policies and standards in Vietnam.

In the process of Vietnam’s economic integration, what do you think of the presentation of the VACPA?

In my opinion, the establishment of the internationally standardised VACPA is an indispensable step for Vietnam before entering the international financial market in the near future.  VACPA formation is further proof of Vietnam’s open policy according to international practice. The VACPA functions nationwide with its main offices in Hanoi and Ho Chi Minh City and is a member of the Vietnam Accounting Association.

This is also in accordance with the Vietnamese Government’s commitments with other countries in the region with the aim of equalising accounting and auditing activities with regional countries by 2010. Or in other words, VACPA will be recognised as an independent organisation and satisfy all membership qualifications of other international organisations in the region.