Photograph: Pha Lina / Phnom Penh Post The Royal Government of Cambodia has issued a sub-decree on penalties for accounting and auditing offenses, while this law will impose penalties on accountants and auditors or enterprises. Nonprofit entities up to Riel 30 million or more are guilty of crimes committed against the law.

The sub-decree was signed by Prime Minister Hun Sen on Monday with the aim of promoting the responsibilities of enterprises, non-profit organizations, accountants and Auditors to ensure the effective implementation of accounting and audit law.

The eight-page sub-decree states that in the case of enterprises, nonprofit entities, accountants and auditors make mistakes, which are mostly procedural. Administrations such as the use of dates, numbers, or evasion and filing delays will be fined between 800,000 and 30 million riels. Or more.

Not only that, if still committing the same offense, they will be subject to two fines, or a suspension or revocation of the license. Conduct accounting and auditing activities including judicial measures.

The decree states that: “The penalties of this transaction are the authority of the National Accounting Council or CNCC. The Chairperson of the CNCC shall have the right to decide on behalf of the CNCC. The NEC's General Secretariat submits and proposes a decision to impose an interim penalty for the CNCC to review and decide. Transaction fines will be subject to CNRP's revenue. ”

Nevertheless, the sub-decree paves the way for a 15-day complaint to the CNRP and the Minister of Economy and Finance. And the court within 30 days in accordance with the subsequent procedures in case the accountant or auditor is not satisfied with any decision .

Ministry of Economy and Finance spokesman Meas Sok Sensan told the Post yesterday that the creation of a sub-decree on the fine was due to the development. Rapid changes in the economy bring the accounting and audit sector to the same level in both international and regional contexts. Therefore, this would require each country to update its accounting management regulations.

“For Cambodia, as a result, the laws and regulations governing the sector have been completely reorganized, including the letter of the law Legal Essentials on Accounting and Auditing and Sub-decree on Penalties for Violations of Accounting and Auditing Law Put it into practice. ”

Heang Phirom, an accounting officer for a private firm in Phnom Penh, told the Post yesterday that this is the law that set them. By the government, though the penalties are high, all subordinate institutions must comply.

She expects that when the law is promulgated, it will be widely and equitably applied.

“As you know, the government is the law maker and there are high fines. This Decree is good if applicable throughout the country. Just because people sometimes don't have the skills (accounting or auditing), it is difficult to find them . If there are any (accounting or auditors), the company is less likely to choose because of the high cost. ”