Decree 228/2025 on Administrative Penalties in Independent Auditing

The decree clearly specifies the types of violations, levels of penalties, and corrective measures applicable in the auditing sector. Violations subject to sanctions include: failure to comply with auditing standards, issuing audit reports without sufficient evidence or in contradiction with actual audit results, engaging in acts that violate the code of professional ethics, disclosing or failing to disclose information improperly, and other activities that distort the accuracy or objectivity of financial statements.

Depending on the severity and nature of the violation, penalties range from warnings and monetary fines to more stringent measures. These may include suspension of practicing certificates, revocation of business licenses, or prohibitions from providing auditing services for a specific period. The decree also establishes remedial obligations, such as requiring violators to rectify incorrect reports, return unlawful gains, or publicly disclose sanctions imposed.

A notable feature of Decree 228/2025 is its alignment with international auditing practices. By introducing stricter sanctions and emphasizing professional ethics, the decree contributes to raising audit quality, strengthening investor confidence, and ensuring greater transparency in corporate governance. This is particularly significant in the context of Vietnam’s ongoing financial market development and deeper integration into the global economy.

Furthermore, the decree is expected to serve as a preventive tool, deterring potential violations by setting clear legal consequences for misconduct in the auditing profession. It reinforces the responsibility of auditors and auditing firms to act with integrity, independence, and objectivity when performing their duties.

Decree 228/2025/ND-CP will officially take effect on September 15, 2025, marking a new step in perfecting Vietnam’s legal framework for independent auditing and strengthening the state’s capacity to oversee the sector effectively.