Subjects required to perform internal audits in Vietnam

Follow the rules in Circular số 8/2021/TT-BTC of the Ministry of Finance, starting to take effect on April 1, 2021, there are 03 groups of subjects who are required to conduct internal audits in Vietnam.

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According to Circular No. 8/2021/TT-BTC, internal audits are conducted in units with different purposes, sizes, complexity and structure and implemented by personnel inside and outside the unit.

Compliance with Vietnam's internal audit standards is essential in fulfilling the audit responsibilities of internal auditors and internal audit activities.

According to Decree No. 05/2019/ND-CP, mandatory subjects for internal audit in Vietnam include:

Firstly, state agencies include: ministries, ministerial-level agencies, government-attached agencies; People's Committees of provinces and centrally-run cities must conduct internal audits at the People's Committees of provinces and centrally-run cities; specialized agencies under the People's Committees of provinces and centrally-run cities and non-business units under the People's Committees of provinces and centrally-run cities in Vietnam.

Secondly, public non-business units, public non-business units ensure recurrent expenditures and investment expenditures, public non-business units ensure recurrent expenditures: There is a total salary fund, allowances and contributions according to the salary of the number of existing employees (including the number of payrolls present, contract workers under Decree No. 68/2000/ND-CP on the implementation of the contract regime for some types of jobs in the State administrative agencies, government non-business units and other professional contract workers) in a year from VND 20 billion or more or use 200 or more employees to perform internal audit work in Vietnam.

Thirdly, enterprises in Vietnam include listed companies, enterprises in which the State owns more than 50% of the charter capital are parent companies operating under the parent company - subsidiary model; State-owned enterprises operating under the parent company - subsidiary model must perform internal audit.

In particular, the implementation of internal audit in state agencies must ensure the principle of not increasing payroll, not giving rise to new leads. For enterprises in Vietnam, it is possible to hire an independent auditing organization qualified for auditing activities in accordance with the law to provide internal audit services.

In case an enterprise hires an independent auditing organization in Vietnam to provide internal audit services, it must ensure the basic principles of internal audit and the requirements to ensure compliance with the basic principles of internal audit...

Particularly, the outsourcing of internal audits of enterprises under the Ministry of National Defense and the Ministry of Public Security shall comply with regulations of the Minister of National Defense and the Minister of Public Security.

Quynh Trang

Source: Tạp chí Tài chính

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