Rights and responsibilities of internal auditors in Vietnam

Rights and responsibilities of internal auditors in Vietnam (Internet image)

1. Eligibility standards of internal auditors in Vietnam

According to Article 11 of Decree 05/2019/ND-CP, the eligibility standards of internal auditors is prescribed as follows:

- Hold undergraduate degrees in majors meeting audit requirements, acquire sufficient and updated knowledge about assigned internal audit sectors.  

- Have at least 5 years’ working experience in the industries relevant to their training majors or at least 3 years’ experience in working for their current employer or at least 3 years' experience in working in the audit, accounting or inspection field.

- Acquire general knowledge and understanding about laws and business operations of audited units; have competence in collecting, analyzing, assessing and consolidating information; have knowledge and skills related to the internal audit.

- Have not yet been subject to any discipline in a warning or severer form that is likely to be imposed on any violation arising from economic or financial administration or accounting activities or, at present, be not subject to disciplinary actions.

- Meet other standards prescribed by audited units.

2. Rights and responsibilities of internal auditors in Vietnam

2.1. Responsibilities of internal auditors in Vietnam

Specifically, in Clause 1, Article 23 of Decree  05/2019/ND-CP, internal auditors must perform the following responsibilities:

- Carry out internal audit plans that have already been approved;

- Identify information that is sufficient, reliable, proper and useful to accomplish audit objectives;

- Rely on appropriate analyses and assessments in order to give independent and unbiased audit conclusions and results;

- Store related information in order to support audit conclusions and produce audit results;

- Bear responsibility for results of assigned internal audits;

- Protect confidential information in accordance with laws;

- Incessantly improve professional competencies and adhere to professional ethics;

- Assume other responsibilities prescribed by laws and internal audit rules of each audited unit.

2.2. Rights of internal auditors in Vietnam

Internal auditors have the following rights:

- In the process of carrying out internal audits, exercise independent rights to give their opinions, comments, assessments and recommendations about audited matters;

- Request audited department/units to provide materials, documents and information related to audited matters in a timely and sufficient manner;

- Retain written opinions on audit results within the scope of their assigned tasks;

- Exercise other rights defined under laws and internal audit rules of each audited unit.

(Clause 2, Article 23 of Decree 05/2019/ND-CP)

3. Objectives and fundamental principles of Internal Audit in Vietnam

3.1. Objectives of internal audit in Vietnam

According to Decree 05/2019/ND-CP, by means of carrying out inspection, assessment and consulting activities, the internal audit may come up with assurances of independence and objectivity and recommendations about the followings:

- The internal audit system of a unit must have been established and operated in an appropriate manner in order to prevent, detect and handle risks to which the unit may be exposed.

- Management and risk management processes of a unit must ensure efficiency and high performance.

- Operational and strategic objectives, plans and missions must have been fulfilled.

3.2. Fundamental principles of internal audit in Vietnam

- Independence: An internal auditor shall not be charged with performing tasks subject to internal audit. A unit must ensure that the internal audit is not affected by any interference whilst performing tasks of reporting and assessment.

- Objectivity: An internal audit must ensure objectivity, accuracy, reliability and equality during the process of performing internal audit tasks.

- Complying with laws and being held legally liable for internal audit activities.

(Article 4 of Decree 05/2019/ND-CP)

Thanh Rin

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