08 cases were not assigned to be members of the audit team in Vietnam

08 cases were not assigned to be members of the audit team in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

Who are members of the audit team?

Audit team members include: Members who are State Auditors and members who are not State Auditors.

In particular, members of the audit team who are not state auditors include:

- Civil servants and employees of the State Audit;

- State Audit Collaborator.

(Clause 2, Article 10 Regulations issued together with Decision 03/2020/QD-KTNN 2020)

08 cases were not assigned to be members of the audit team in Vietnam

According to Article 8 of the Regulations issued together with Decision 03/2020/QD-KTNN in 2020, individuals in the following cases are not arranged to be members of the audit team:

(1) Buying shares, contributing capital, or having economic interests with the audited unit.

(2) Having ever held the position of manager, executive, member of the supervisory board, chief accountant, or in charge of accounting at the audited unit in the audited financial years.

(3) Within at least 05 years from the date of resignation from the position of manager, executive, member of the control board, chief accountant, or in charge of accounting at the audited unit.

(4) Having a relationship as biological parents, adoptive father, parents-in-law, wife, husband, children, or siblings with the head, chief accountant, or person in charge of accounting of the audited unit.

(5) State auditors are being considered for disciplinary action, have been disciplined, or have lost or revoked their State Auditor card.

(6) State auditors do not meet the qualifications and capacity to participate as members of the audit team.

(7) When there are cases specified in (1), (2), (3), (4), the State Auditor is responsible for reporting in writing to the Head of the unit presiding over the audit before submitting to the State Auditor General for a decision to establish an audit team.

During the audit process, if they detect situations that affect their independence, the State Auditor must immediately report to the Head of the Audit Team to report to the Head of the unit presiding over the audit and submit to the State Auditor General to decide on replacement according to the provisions of Article 17 of the Regulations issued together with Decision 03/2020/QD-KTNN in 2020.

(8) The head of the unit proposing personnel to join the audit team is responsible for checking and reviewing to detect cases where the State Auditor is not assigned to be a member of the audit team falling into the cases specified in Clauses 1, 2, 3, 4, 5, 6, Article 8 of the Regulations issued together with Decision 03/2020/QD-KTNN 2020 before submitting to the State Auditor General for a decision to establish an audit team.

Operating principles of the audit team

The audit team's activities must comply with the following principles:

- Independent and only obeying the law.

- Honest, objective, open, and transparent.

- The audit team operates under a leadership regime.

- When conducting an audit, members of the audit team must comply with the Law on State Audit Office of Vietnam, relevant legislative documents, the standards system, the audit form filing system, procedures and professional auditing methods, and provisions of the Regulations issued together with Decision 03/2020/QD-KTNN 2020.

- When conducting audits abroad, the audit team must comply with Vietnamese law and the law of the host country; comply with the principles: savings, efficiency, ensuring national defense and security, and state secrets according to the provisions of the law.

(Article 3 of the Regulations issued together with Decision 03/2020/QD-KTNN 2020)

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