IDF - Vietnam Capacity Strengthening for the Vietnam Association of Certified Public Accountants The project will have three components: Component 1 Building and Training in Sample Audit Programs: This component will support the engagement of an international expert and local audit practitioners to work with the VACPA staff and advisory members to developing a sample audit program(s) for financial statements audits based on the legal regulations in Vietnam, the Vietnam Accounting Standards (VAS) and the Vietnamese Standards of Auditing (VSA). The consultants will also assist and help develop training materials to enable the VACPA to provide professional development training to auditors. Support will also be provided for consultations with audit membership on the sample audit programs and for document translation and printing.  The VACPA will use to enhance the understanding and knowledge of auditors. Seven training courses using the sample audit program will be delivered with the assistance of trainers from local financial training centres to practicing auditors (approximately 100 auditors per course with a focus on practitioners of small and medium size audit firms). The expected outcome is improved quality of auditing services through Vietnamese auditors have access to a credible guidance on standard financial statements audit program(s) and for the program(s) to be a benchmark for the quality assurance monitoring by the VACPA and the Ministry of Finance. Component 2 Training in the application of VAS and VSA In Vietnam 26 accounting standards (VAS) and 36 auditing have been issued (VSA), however surveys of financial statements and audit reports by the VACPA and Ministry of Finance indicate that some of the more technically complex standards are not being properly applied. Feedback from CPA members to the VACPA indicates the need for guidance and training in the proper application of the VAS and VSA to improve the quality and consistency of financial reporting and of auditing.  This component will address this immediate high priority need through supporting the engagement of a small team of local audit experts to work with the VACPA to design and develop Guidelines on the technically challenging VAS and VSA (a total of 10 priority standards have been identified). To ensure quality guidance notes and training materials are produced, the component will provide funding support for consultations within the professions (workshops, peer reviews). Five (5) two day training courses for certified public accountants and auditors will be conducted to disseminate the guidance notes by Vietnam accounting and auditing lecturers. The expected outcome is improved knowledge and understanding of accountants and auditors on the application of the standards. The outputs of the component will be Technical Guidance Notes and associated training materials on the 10 technically complex VAS and VSA; approximately 500 professional accountants and auditors trained. Component 3 Institutional Development for the Association The VACPA is the professional association for certified practicing auditors of Vietnam. The VACPA has approximately 600 CPA members and 140 firms registered to provide audit services in Vietnam.  The VACPA members and audit firms are required to renew their memberships and have continuing professional development obligations. The VACPA also manages the annual audit quality assurance review program. The VACPA, as a very young professional body, has yet to develop its internal systems and methods of operation to effectively manage its membership and activities. This component will support a study tour for 7 of the VACPA executive and staff to visit the Institute of Certified Public Accountants of Singapore (ICPAS) to gain an understanding of the software systems used for managing members and association activities. The expected outcome is a roadmap for the future acquisition and implementation of systems at the VACPA to improve its management of its members and activities. Component 4 Project Implementation and Audit This component will support the engagement of one technical expert and one coordinator to work with the VACPA to help the Association coordinate and manage the consultants in the development of technical guidance and training materials and to help coordinate consultations with members on the content of the audit programs, accounting and auditing guidance notes.  They will also carry out the logistics for arranging the training to be delivered. This component will also support acquisition of computer and presentation equipment to support the development of audit program(s) and the delivery of training by the VACPA.  It will also fund the cost of audit of the IDF grant. The development objective of this IDF proposal is to build the capacity of the professional accountants and auditors in Vietnam through assisting the Vietnam Association of Certified Practicing Accountants and Auditors (VACPA) to (i) develop and train in standard financial statements audit program(s) for practicing auditors and for use as a benchmark in annual quality assurance monitoring of auditors; (ii) develop Technical Guidance Notes and associated training materials on the technically complex Vietnam Accounting Standards and Vietnam Standards of Auditing and deliver training to professional accountants and auditors; and (iii) develop an understanding and a roadmap for implementing systems to effectively manage its membership and association activities.