Notes for operational audit when conducting an audit in Vietnam
When conducting an audit for operational audit, what issues should be noted? Please help me with the answer, thank you very much!
Clause 4, Article 16 of the Audit procedures of State Audit issued with Decision 02/2020/QD-KTNN stipulate the notes for operational audit when conducting an audit, including:
4. Notes for financial audit, compliance audit and operational audit
- In financial audit, when determining audit methods, State auditors may choose audit methods based on credibility and efficiency of internal control systems (compliance audit procedures) or adopt fundamental audit procedures based on assessment of State auditor for risks detected in data transmission level. Regarding fundamental audit procedures, State auditors may choose between analysis and detailed examination procedures.
In case of analysis procedures, State auditors shall conform to State audit standard 1520 – Analysis procedures in financial audit.
In case of collecting samples, sample size and components for detailed examination, conform to State audit standard 1530 – Collection of audit sample in financial audit and Guidelines for audit based on risk assessment and identification of audit materiality.
- Risk assessment for development of risk handling measures in financial audit shall conform to State audit standard 1315 – Identification and assessment of risks of material flaws via understanding of audited entities and working environment thereof in financial audit; State audit standard 1330 – Risk handling measures in financial audit; Audit risk management in operational audit and compliance audit shall conform to Section85 of State audit standard 3000 – Guidelines for operational audit and Section 62, Section 63 of State audit standard 4000 – Guidelines for compliance audit.
- Identification of materiality is the matter of specialized judgment and relies on analysis of State auditor regarding requirements of entities utilizing audit reports. Audit materiality must be considered throughout audit process. Identification of audit materiality and revision of level of materiality during audit process shall conform to State audit standard 1320 – Determination and utilization of materiality in financial audit; Section 21 to Section 22 State audit 3000 – Guidelines for operational audit and Section 19 to Section 24, and Section 61 State audit standard 4000 – Guidelines for compliance audit.
- Auditing opening balance in financial audit shall conform to State audit standard 1510 - Auditing opening balance in financial audit.
- Auditing accounting estimates shall conform to State audit standard 1540 – Auditing accounting estimates in financial audit.
- Auditing trades with relevant parties shall conform to State audit standard 1550 – Relevant parties in financial audit.
- Auditing events that occur after accounting period has concluded shall conform to State audit period 1560 – Events arising after accounting period; auditing events arising after audit period for compliance audit shall conform to Section 65 State audit standard 4000 – Guidelines for compliance audit.
- Considering assessment for going concern assumption in financial audit shall conform to State audit standard 1570 - Ongoing operational audit of entities in financial audit.
- Request for written explanation shall conform to State audit standard 1580 – Written explanation in financial audit; Section 86, Section 87 State audit 3000 – Guidelines for operational audit and Section 64 State audit standard 4000 – Guidelines for compliance audit.
- In case of consolidated financial audit, conform to State audit standard 1600 - Note for financial audit of corporations.
- Using results of internal auditors and experts’ work during financial audit shall conform to State audit standard 1610 – Use of internal auditors’ work in financial audit and State audit standard 1620 – Use of experts’ work in financial audit.
- Using results of authorities during audit process shall conform to Section 30 State audit standard 100 - Basic principles in operations of State Audit Office of Vietnam.
- Audit operations related to information, data, financial statement and comparison shall conform to State audit standard 1710 – Comparison information – Corresponding data and financial statement comparison, responsibilities of State auditors related to other information in financial audit.
Best Regards!
