03 core principles of internal audit for corporate use in Vietnam

According to Article 7 of the sample Regulations issued together with Circular No. 66/2020/TT-BTC of the Ministry of Finance of Vietnam, 03 core principles of internal audit for corporate use are specified as follows:

1. Independence:

- Internal audit practitioners shall not be allowed to simultaneously undertake the works defined as the subjects of internal audit. The internal audit is free from any interference during the performance of reporting and assessment tasks and functions.

- Internal audit practitioners shall not be allowed to get involved in auditing activities and departments/units where they assume operational or executive responsibilities over the last 3 years.  

- Internal audit practitioners shall not be allowed to get involved in auditing activities and departments/units where their related persons assume operational or executive responsibilities.  

2. Objectivity: Internal audit practitioners must ensure objectivity, accuracy, integrity and impartiality during the process of performing internal audit engagements.

3. Complying with laws and assume legal liability for internal audit activities.

Besides, the sample Regulations issued together with Circular No. 66/2020/TT-BTC also stipulates standards for professional practice of internal auditing as follows:

1. The internal audit department must comply with legal regulations on internal audit, the internal audit standards and code of ethics issued or announced by the competent regulatory authority.

2. In addition, the internal audit department must comply with the relevant policies and procedures of (enterprise’s name) regarding internal audit, even including internal audit procedures that have been approved and put to use by (enterprise’s name).

View more details at the Circular No. 66/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from September 01, 2020.

Ty Na

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