04 Steps of an audit in Vietnam

04 Steps of an audit in Vietnam (Internet image)

04 Steps of an audit in Vietnam

In Article 44 of the Law on State Audit Office of Vietnam 2015, the steps of the audit process are as follows:

(1) Prepare the audit.

(2) Carry out the audit.

(3) Make and send the audit report.

(4) Monitor, inspect the implementation of auditors’ opinions.

Step 1: Prepare for the audit

Article 45 of the Law on State Audit Office of Vietnam 2015 stipulates audit preparation as follows:

- Survey, collect information about the internal control system, financial status, and relevant information about the audited unit.

- Assess the internal control system and collected information about the accounting unit to determine the targets, contents, scope, and method of audit.

- Make the audit plan.

Step 2: Carrying out the audit

According to Article 46 of the Law on State Audit Office of Vietnam 2015:

- The audit delegation shall carry out the audit in accordance with the audit decision.

- Members of the audit delegation shall apply audit methods to collect and assess audit evidence; carry out inspection, comparison, and confirmation; investigate entities related to the audit for the basis for making assessment, confirmation, and auditors’ opinions about the audited contents.

Step 3: Making and sending the audit report

Article 47 of the Law on State Audit Office of Vietnam 2015 stipulates the preparation and submission of audit reports as follows:

- Within 30 days from the end of the audit at the audited unit, SAV shall complete the draft audit report and send it to the audited unit for opinions.

- Within 10 days from the receipt of the draft audit report, the audited unit must send opinions in writing to SAV; if the audited unit does not express any opinions by the said deadline, it will be considered that the audited unit agrees with the draft audit report.

- The audit report shall be sent by SAV to the audited unit and relevant agencies according to regulations of State Auditor General within 45 days from the end of the audit. This deadline may be extended up to 60 days form the end of the audit.

- Reports on audit of local government budget statements shall be sent to deputies of the National Assembly, the People’s Councils and the People’s Committees at the same administrative level; reports on audit of provincial budget statements shall also be sent to the Ministry of Finance.

Step 4: Inspecting implementation of auditors’ opinions

Making and sending reports on audit of state budget statements and annual consolidated audit reports of State Bank of Vietnam

- Reports on audit of state budget statements shall be made in accordance with Clauses 1, 2, 3 Article 47 of the Law on State Audit Office of Vietnam 2015.

- The annual consolidated audit report of SAV shall be made on the basis of the reports on audit of state budget statements and consolidated audit results in the year of SAV.

- SAV shall send reports on audit of state budget statements and annual consolidated audit report to the National Assembly, Standing Committee of the National Assembly, Ethnic Council, Committees of the National Assembly within 16 months after the end of the budget year, and also to the President, the Government, and the Prime Minister of Vietnam.

Inspecting implementation of auditors’ opinions

- SAV shall plan and organize inspection of accounting units’ implementation of opinions given by SAV.

- The inspection of implementation of auditors’ opinions shall be carried out as follows:

+ Request the audited unit to submit a written report on implementation of auditors’ opinions.

+ Carry out inspection of the implementation of auditors’ opinions at the audited unit and relevant organizations/units.

- SAV shall make and send the report on implementation of auditors’ opinions. Reports on implementation of opinions of SAV shall be sent in accordance with Clause 3 Article 48 of the Law on State Audit Office of Vietnam 2015.

(Article 48, Article 49 of the Law on State Audit Office of Vietnam 2015)

Ngoc Nhi

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