Cases of disqualification from participation in audit delegations in Vietnam

Cases of disqualification from participation in audit delegations in Vietnam (Internet image)

On August 20, 2024, the State Auditor General issued Decision 1495/QD-KTNN on Regulations on the Organization and Operation of the State audit delegation.

1. Cases of disqualification from participation in audit delegations in Vietnam

According to Article 8 of the Regulation issued with Decision 1495/QD-KTNN in 2024, the ineligible cases include:

- Purchasing shares, contributing capital, or having related rights and interests with the audited units;

- Previously holding managerial, executive, supervisory board member, chief accountant, or accounting officer positions at the audited unit for the financial years being audited;

- Within at least 5 years since leaving managerial, executive, supervisory board member, chief accountant, or accounting officer positions at the audited unit;

- Having relationships such as spouse; parents, direct caregivers, or parents, direct caregivers of the spouse; biological children, adopted children, daughter-in-law, son-in-law; siblings; and siblings of the spouse as regulated by law within the audited unit or being members of the audit delegation;

- During the period of disciplinary review, being disciplined or losing, having their inspector cards revoked;

- Lacking the necessary qualifications and competencies to participate in the audit delegation;

- Not meeting the working duration as regulated in Clause 1, Article 21 of the Regulation issued with Decision 1495/QD-KTNN in 2024.

In addition: When there are circumstances as regulated in Clause 1, Article 8 of the Regulation issued with Decision 1495/QD-KTNN in 2024, members of the audit delegation are required to report to the unit head in charge of the audit inspection in writing before submitting to the State Auditor General for the decision to establish the audit delegation.

During the audit process, if issues affecting their independence are discovered, members of the audit delegation must immediately report to the Head of the audit delegation to inform the head of the unit in charge of the audit, who will decide on replacements as regulated in Article 17 of the Regulation issued with Decision 1495/QD-KTNN in 2024.

The head of the unit proposing personnel for the audit delegation is responsible for checking and reviewing to identify persons ineligible as members of the audit delegation as specified in Clause 1, Article 8 of the Regulation issued with Decision 1495/QD-KTNN in 2024 before submitting to the State Auditor General for the establishment of the audit delegation. In special cases, the State Auditor General will make the final decision.

2. Audit Duration in Vietnam

The audit duration is regulated in Article 4 of the Regulation issued with Decision 1495/QD-KTNN in 2024 as follows:

- The duration of the audit is counted from the date the audit decision is issued until the end of the audit at the audited unit.

- The duration of an audit does not exceed 60 days, except as regulated in Clause 3, Article 4 of the Regulation issued with Decision 1495/QD-KTNN in 2024. In complex cases requiring extended audit duration, the State Auditor General may decide on an extension, but the additional time must not exceed 30 days.

- For audits evaluating the economic value, capacity, and results in the management and use of public finance and public assets on a national scale, the State Auditor General will decide on the audit duration.

More details can be found in Decision 1495/QD-KTNN, which comes into force in Vietnam from August 20, 2024.

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