Penalties for accounting and financial statement violations

Penalties for accounting and financial statement violations

Penalties for accounting and financial statement violations

Making a financial statement or accounting is a job that requires a lot of time and effort to perform the calculation of targets. 

However, if you are not careful in preparing and presenting financial statements, accounting, an enterprise may be fined with a fine from VND 5 million to VND 50 million under Decree 41/2018 / ND-CP of the Vietnam government that takes effect from 1st May, 2018.


1. Penalties for violations against regulations on financial statement


1.1 A fine from VND 5 million to VND 10 million with one of the following financial statement violations:

a) The financial statement is not sufficient or not in the prescribed form.
b) The financial statement without the signature of the person who prepared, chief accountant or the legal representative of the accounting unit.

1.2 A fine from VND 10 million to VND 20 million with one of the following financial statement violations:

a) Not enough financial statements as prescribed.
b) Unless otherwise approved by the Ministry of Finance, all financial statements that do not comply with the requirements of accounting standards and regulations are subject to the same fine.

1.3 A fine from VND 20 million to VND 30 million with one of the following financial statement violations:

a) Do not prepare financial statements.
b) Financial statements do not match accounting books and accounting documents
c) Financial statements are not in accordance with regulations of accounting standards and regulations.

1.4 A fine from VND 40 million to VND 50 million with one of the following financial statement violations:

a) Forging financial statements, making false statements of data or agreement, forcing other people to forge financial statements, giving false statements, but not seriously enough to be examined for penal liability..
b) Agreeing or forcing others to provide or certify untrue accounting figures.
c) Deliberately, agreeing or forcing others to provide or confirm false accounting information and data but not seriously enough to be examined for penal liability.


2. Penalties for violations against general regulations on accounting law


2.1 A fine of 10.000.000 to 20.000.000 VND shall be imposed for any of the following violations:

a) Failing to apply the regulations on writing, numerals in accounting.

b) Failing to apply the regulations on monetary units in accounting.

c) Failing to apply the regulations on the accounting period.

d) Failing to apply accounting regimes to which units are subject to apply.

2.2 A fine of 10.000.000 to 20.000.000 VND shall be imposed for any organization who is not authorized but publishes accounting standards, audit standards, accounting regimes.


3. Penalties for violations against general regulations on accounting vouchers


3.1 A fine of between VND 3,000,000 and 5,000,000 for one of the following acts:

a) The form of accounting vouchers does not contain all the main contents as prescribed.

b) Erasing, modifying accounting vouchers.

c) Signing accounting vouchers in red ink, fading ink.

d) Signing accounting vouchers with stamped pre-engraved signatures.

e) The voucher of payment without signature on each copy.

3.2 A fine of between VND 5,000,000 and 10,000,000 for one of the following acts:

a) Making accounting vouchers not enough copies as prescribed for each type of accounting voucher.

b) Signing accounting vouchers with not fully contents under the signer’s responsibility.

c) Not authorized to sign accounting vouchers.

d) The signature of a person is inconsistent or inconsistent with the sample signature register;

e) Accounting vouchers do not have enough signatures according to the titles specified on the vouchers;

f) Failing to translate accounting vouchers from foreign languages ​​into Vietnamese according to regulations;

g) To damage, lose accounting documents and vouchers in the process of use.

3.3 A fine of between VND 20,000,000 and VND 30,000,000 for one of the following acts:

a) Forging, falsifying accounting documents but not seriously enough to be examined for penal liability.

b) Agreeing or forcing other people to forge and falsify accounting documents but not seriously enough to be examined for penal liability.

c) Making accounting vouchers with contents that are not identical in each copy, in cases where it is required to make multi accounting vouchers for an arising economic and financial operation.

d) Failing to make accounting vouchers when economic and financial operations arise.

e) Making accounting vouchers many times for an arising economic and financial operation.

f) Make payment when the payment voucher is not fully signed by the competent person in accordance with the law on accounting.


4. Penalties for violations against regulations on accounting books


4.1 A fine of between VND 1,000,000 and VND 2,000,000 for one of the following acts:

a) Making accounting books without specifying the names of the accounting units, book name, date of making the book; closing date, lack of signatures of book makers, chief accountants and legal representatives of accounting units. No page numbering; do not stamp the overlapping pages.

b) Accounting books are not written with ink (except for cases the accounting units choose to record accounting books by electronic means), additionally inscribed on the top or bottom, overlap and line spacing inscription, do not cross out the blank page; do not carry out the sum of the total data at the end of each page, do not transfer the total data of the previous page to the top of the next page.

c) Do not make a separate book for each accounting period or do not have full signatures and stamps as prescribed after printing on paper (except for books that are not required to print according to regulations for units that choose to archive accounting books on electronic means.

d) The accounting book template does not contain all the main contents as prescribed.

4.2 A fine of between VND 3,000,000 and VND 5,000,000 for one of the following acts:

a) The accounting book is not inscribed fully with main contents as prescribed.

b) Modify errors on the accounting book not in accordance with the prescribed method.

c) Do not print the accounting books on papers after closing books on electronic means (to accounting books that are subject to print on papers as prescribed).

4.3 A fine of between VND 5,000,000 and VND 10,000,000 for one of the following acts:

a) Failing to open accounting books at the beginning of the annual accounting period or from the date of establishment of the accounting units.

b) Having no accounting vouchers proving that the information and figures recorded in the accounting books or figures on the accounting books are not consistent with the accounting vouchers.

c) Information and figures recorded in accounting books of the year of execution do not follow the information and figures recorded in accounting books of the preceding year or the accounting books from the time of opening to the closing date are discontinued.

d) Failing to close accounting books in cases where the law requires accounting books to be closed.

4.4 A fine of between VND 20,000,000 and VND 30,000,000 for one of the following acts:

a) Canceling ahead of schedule or intentionally damaging the accounting book.

b) A accounting book does not include assets, liabilities of the units or related to the units but not seriously enough to be examined for penal liability.