Decree No. 228/2025/ND-CP This is the most important legal document recently issued by the Government to tighten discipline and improve the quality of independent auditing services in Vietnam. In the context of an economy demanding absolute transparency in financial data, the implementation of Decree No. 228/2025/ND-CP is not only a deterrent but also a guiding principle to help auditing firms and practicing auditors operate within the legal framework and protect the rights of investors.
The promulgation of Decree No. 228/2025/ND-CP, replacing the old regulations, clearly reflects the spirit of the Law amending and supplementing a number of articles of the Securities Law and Law on Independent Auditing No. 54/2024/QH15With maximum fines reaching up to 2 billion VND for organizations, Decree No. 228/2025/ND-CP poses significant risk management challenges for businesses providing these services. Let's analyze the new points and compliance roadmap in detail in the article below, brought to you by MAN – Master Accountant Network.
Overview of the scope and subjects of application of Decree No. 228/2025/ND-CP
Decree No. 228/2025/ND-CP is built upon the foundation of the 2025 Law on Government Organization and the Law on Handling Administrative Violations, focusing on standardizing the process for handling violations in the auditing sector. The scope of Decree No. 228/2025/ND-CP covers everything from violations, statutes of limitations for penalties, penalty levels, to specific remedial measures.
The entities directly affected by Decree No. 228/2025/ND-CP include individual auditors, domestic and foreign auditing firms, as well as training and knowledge updating institutions. Clearly identifying these entities helps state management agencies, especially the Ministry of Finance, to easily monitor and enforce regulations fairly and transparently.
Key new points in Decree No. 228/2025/ND-CP regarding penalty levels.
One of the most notable changes in Decree No. 228/2025/ND-CP is the significant increase in monetary penalties. This aims to be commensurate with the scale and benefits of current audit contracts, especially in entities with public interest.
Maximum fine range for individuals and organizations
According to Article 6 of Decree No. 228/2025/ND-CP, the maximum fine has been raised to a record level to deter acts of profiteering and falsifying financial records.
| Object | Maximum penalty according to Decree No. 228/2025/ND-CP |
| Individual | 1,000,000,000 VND |
| Organization | 2,000,000,000 VND |
The statute of limitations for penalties is extended.
Decree No. 228/2025/ND-CP stipulates that the statute of limitations for administrative penalties in the field of independent auditing is 5 years. This is a sufficiently long period for competent authorities to conduct post-audits and detect errors in audit reports, which often have a time lag in risk detection.
Analyzing specific violations according to Decree No. 228/2025/ND-CP
Understanding the prohibited behaviors under Decree No. 228/2025/ND-CP is a prerequisite for businesses to avoid huge fines and the risk of suspension of operations.
Violations regarding examination documents and auditor certification.
Sections 1 and 2 of Chapter II of Decree No. 228/2025/ND-CP stipulate very strict requirements regarding the authenticity of documents. Falsifying qualifications or documents to take the auditor certification exam can result in fines ranging from 40 to 60 million VND. More seriously, falsifying auditor certifications to register for professional practice under Decree No. 228/2025/ND-CP can lead to high fines and confiscation of evidence.
Irregularities in the auditing services business.
Decree No. 228/2025/ND-CP focuses on maintaining the conditions for conducting auditing services. If an auditing firm fails to ensure a sufficient number of practicing auditors or leases/borrows its Certificate of Eligibility for Business Operations, penalties will be applied progressively from the first to the third violation.
Collusion to falsify audit results – A “red zone” of risk.
Collusion between auditors and audited entities to falsify financial statements is the most severely punished offense under Decree No. 228/2025/ND-CP. Particularly for entities with public interest, such as listed companies and banks, the penalty can reach a maximum of 2 billion VND, along with permanent revocation of the professional license or criminal prosecution.
Summary table of detailed penalties according to Decree No. 228/2025/ND-CP
To make it easier for businesses and auditors to keep track, MAN has compiled the most common penalties stipulated in Decree No. 228/2025/ND-CP.
| Behavioral groups | Detailed description of the behavior as stipulated in Decree No. 228/2025/ND-CP | Fine amount (VND) |
| Application form | Confirmation of inaccurate information in the exam documents. | 20.000.000 – 40.000.000 |
| Register for professional practice | Making inaccurate declarations in the registration documents. | 40.000.000 – 60.000.000 |
| Audit contract | Entering into a contract that is incomplete or violates regulations. | 5.000.000 – 10.000.000 |
| Audit file | No audit documentation was prepared, or the documentation was incomplete. | 150.000.000 – 200.000.000 |
| Service quality | Serious professional misconduct when signing the report. | 20.000.000 – 30.000.000 |
| Collude | Falsifying records and audit results (first offense) | 400.000.000 – 500.000.000 |
| Recidivism and conspiracy | Collusion to falsify results from the second time onwards. | 800.000.000 – 1.000.000.000 |
Note: The above penalties apply to organizations; for individuals, the penalty will be half, except in special cases as stipulated in Clause 2, Article 7 of Decree No. 228/2025/ND-CP.
Mandatory remedial measures under Decree No. 228/2025/ND-CP
Besides monetary penalties, Decree No. 228/2025/ND-CP also applies very drastic remedial measures to ensure the strict enforcement of the law.
- Mandatory return of illegal profits: All proceeds from the violations must be deposited into the state budget in accordance with the spirit of Decree No. 228/2025/ND-CP.
- Mandatory correction of information: In the case of inaccurate audit reports, businesses must publish corrections through mass media channels.
- Professional liability insurance is mandatory. This is a mandatory requirement to ensure the ability to compensate customers in the event of errors.
- Forced revocation of certificates/licenses: Forged diplomas and certificates, or those issued improperly, will be immediately revoked under Decree No. 228/2025/ND-CP.
Authority to impose administrative penalties in Decree No. 228/2025/ND-CP
The decentralization of authority for imposing penalties in Decree No. 228/2025/ND-CP helps to expedite the processing of violations and ensure compliance with the law. Authorities will base their decisions on the severity of the violation to issue appropriate penalties.
The Director of the Accounting and Auditing Supervision Department has the authority to impose maximum penalties as stipulated in Decree No. 228/2025/ND-CP. The Chairman of the Provincial People's Committee has the authority to impose penalties for violations occurring within their jurisdiction. In addition, the People's Police force also participates in handling acts showing signs of economic crimes related to this document.
Conclude
Decree No. 228/2025/ND-CP serves as a "wake-up call" for all parties involved in the independent auditing market. Understanding and strictly adhering to the provisions of Decree No. 228/2025/ND-CP will not only help businesses avoid legal risks but also affirm their reputation and professional competence in the international market.
To support businesses in adapting to Decree No. 228/2025/ND-CP, MAN – Master Accountant Network proudly offers a professional service ecosystem including independent auditing, tax accountant and tax settlementWe are committed to helping your business remain resilient in the face of changing legal policies, ensuring the most prosperous and sustainable development.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Decree No. 228/2025/ND-CP
When does Decree No. 228/2025/ND-CP take effect?
According to the issued information, Decree No. 228/2025/ND-CP officially takes effect from August 18, 2025. Any violations occurring after this date will be subject to the new penalties.
What are the penalties for businesses that commit multiple violations simultaneously, according to Decree No. 228/2025/ND-CP?
In cases where individuals or organizations commit multiple violations or multiple offenses, Decree No. 228/2025/ND-CP stipulates that aggravating circumstances will be applied and the corresponding penalties will be cumulative.
Can an auditor whose professional license has been revoked re-register?
Depending on the nature of the violation, Decree No. 228/2025/ND-CP stipulates a license revocation period of 1 to 24 months. After this period, the individual must re-register according to regulations.
