Time limit and location for state audit in Vietnam

Time limit and location for state audit in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. Time limit for state audit in Vietnam

According to Article 34 of the Law on State Audit Office of Vietnam 2015, the time limit for state audit is as follows:

- Time limit for an audit begins from the day on which the audit decision is announced until audit tasks at the audited unit are finished.

- The time limit for an audit is 60 days, except for the case in Clause 3 of this Article. State Auditor General may decide extension of the time limit for audit one time. Nevertheless, the extension must not exceed 30 days.

- State Auditor General shall specify the time limit in case of audit for assessing the efficiency and effectiveness of management and use of public finance and/or public property of nationwide scale.

2. Location for audit in Vietnam

Location for audit according to Article 35 of the Law on State Audit Office of Vietnam 2015 are as follows:

- The audit shall be carried out at the audited unit, office of SAV, or another location decided by State Auditor General.

- If an audit is carried out outside the premises of the audited unit, the business premises must send documents as prescribed by State Auditor General.

3. State audited unit in Vietnam

State audited units in Vietnam under Article 55 of the Law on State Audit Office of Vietnam 2015 are as follows:

- Ministries, ministerial agencies, Governmental agencies, and other central regulatory agencies.

- Agencies assigned to execute state budget receipts and expenditures at various administrative levels.

- The People’s Councils, the People’s Committees, other local regulatory agencies

- Units of the People’s armed forces.

- Units in charge of management, use of national reserve; off-budget financial fund.

- Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations using funding provided by the State.

- Public service agencies.

- Organizations in charge of national property management.

- Management boards of projects whose funding is provided by or derived from state budget.

- Enterprises over 50% charter capital of which is held by the State. With regard to enterprises ≤50% charter capital of which is held by the State, State Auditor General shall decide appropriate audit targets, criteria, contents, and methods where necessary.

- Units receiving subsidies from the State, units whose debts are guaranteed by the State other than enterprises that manage, use state capital and/or state property.

These units may hire audit firms; audit firms must carry out the audits in accordance with the state audit standards and procedures, then send audit reports to SAV.

- Agencies in charge of managing, using public debts.

4. Legal validity of audit reports in Vietnam

Legal validity of audit reports according to Article 7 of the Law on State Audit Office of Vietnam 2015 is as follows:

- Audit reports made by SAV are binding upon audited units after they are published in terms of management and use of public finance and/or public property.

- Audit reports of SAV are the basis for:

+ The National Assembly to use during the process of considering, deciding, and supervising: the implementation of long-term and annual socio-economic development policies and objectives; policies on investment in National target programs and projects of national importance; basic policies on national finance; imposition, adjustment, or cancellation of taxes;

Decision on dividing revenues and obligatory expenditures between central government budget and local government budgets; limits on safety limits of national debt, public debts, government debts; making of state budget estimate and allocation of central government budget; approval for state budget statements;

+ The Government, regulatory agencies, other agencies and organizations of the State to use during their managerial tasks and performance of their duties and entitlements;

+ The People’s Councils to use during the process of considering, deciding estimates and allocation of local government budgets; approving local government budget statements; supervising the management and use of public finance and/or public property; performance of their duties and entitlements;

+ Audited units to exercise their right to lodge complaints.

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