Regulations on moral principles of internal auditors in Vietnam

Regulations on moral principles of internal auditors in Vietnam (Internet image)

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

1. Fundamental principles of internal audit in Vietnam

According to Article 5 of Decree 05/2019/ND-CP, the fundamental principles of internal audit include:

- 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.

2. Regulations on moral principles of internal auditors in Vietnam

Article 7 of Decree 05/2019/ND-CP, stipulates the moral principles of internal auditorsas follows:

(1) In the process of performing auditing and consulting tasks, internal auditors must ensure conformity with and maintenance of the least moral principles of internal auditors as follows:

- Truthfulness: Internal auditor must perform their professional tasks in an honest and discreet manner and a high sense of responsibility; comply with provisions of laws and declare necessary information according to requirements of laws and professional requirements of internal auditors; shall be prohibited from participating in illegal acts or other acts causing harm to the prestige of the audit profession and units;

- Objectivity: Internal auditors must ultimately express their professional objectivity with respect to the collection, assessment and exchange of information about audited activities and processes.   

Internal auditors may give unbiased comments on all of related circumstances and must not be affected or controlled by personal interests or any person while making their judgement and conclusion;

- Professional capabilities and discretion: Internal auditors must apply their internal audit knowledge, skills and professional experience. They must also act in a discreet manner and in conformity with professional and technical standards in force;

- Confidentiality: Internal auditors must respect values and ownership of provided information and shall be banned from revealing such information without permission from competent authorities, except in case disclosure of such information falls into their duties or conform to requirements laid down by laws;

- Professional manner: Internal auditors must comply with laws and relevant regulations, must be prevented from performing any act that may reduce their professional prestige.

(2) Persons in charge of internal audit activities must, in addition to assurance of conformance to professional moral principles specified in (1), implement monitoring, assessment and management measures in order to ensure that internal auditors comply with professional moral principles of internal auditors.

3. Objectives of internal audit in Vietnam

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.

(Article 4 of Decree 05/2019/ND-CP)

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