Operation principles of independent audit

Operation principles of independent audit

  1. Compliance with the law and taking responsibility before the law on occupational activity and audit statements.
  2. Compliance with audit standards and professional ethical standards of accounting and auditing of Vietnam; for the audits under the audit contracts that are required to apply the other audit standards shall comply with such audit standards.
  3. Independence, honesty, objectivity.
  4. Information confidentiality.

Compulsory audit

  1. Compulsory audit is the audit for the annual financial statements, the settlement statements of completed projects and other financial information of the audited units specified in clause 1 and clause 2 Article 37 of this Law and other provisions of concerned law.
  2. Audit contract of annual financial statements of the enterprises, organizations that are required to audit the financial statements must be concluded no later than thirty days before the date of ending the year accounting period.
  3. Enterprises and organizations that are required to audit as submitting financial statements to the competent State agencies and as publicizing financial statements audit are required to attach the audit statements; in case when the State agencies receive financial statements of the enterprises, organizations which are required to audit without the attached audit statements, the State agencies are responsible for sending notice to the competent state agencies for handling in accordance with the law regulations.

Encouragement of audit

The State encourages enterprises and organizations hiring the auditing firms, branches of foreign auditing firms in Vietnam to audit the financial statements, the settlement statements of completed projects and other audit works before they are submitted to the competent state agencies or before the public finance.

State administration on the independent audit activities

  1. The Government unifies state administration on the independent audit activities.
  2. The Ministry of Finance takes responsibility before the Government for the implementation of state administration on independent audit activities, with the duties and powers as follows:
  3. a) Making, submitting to the competent State agency for promulgation according to its competence the legal documents on independent audit;
  4. b) Making, submitting to the Government for deciding the strategy and policy of developing activities of independent audit;
  5. c) Stipulating the conditions to take part in the examination, the organization of examination to grant certificates of auditors; granting, revoking, and managing certificates of auditors;
  6. d) Stipulating the standard form of the certificate of sufficient conditions for trading audit service, granting, modifying and revoking the certificates of sufficient conditions for trading audit service;

đ) Suspending the trading of audit service;

  1. c) Inspecting, examining and settling complaints and denunciations and handling violations of legislation on independent audit;
  2. g) Inspecting, examining activities in the field of independent audit of the professional organizations on audit;
  3. h) Providing for updating knowledge to auditors, practicing auditors;
  4. i) Providing for registration and management of audit practice; publicizing the list of auditing firms, branches of foreign auditing firms in Vietnam and practicing auditors;
  5. k) Providing for monitoring quality of audit service;
  6. l) Reviewing and evaluating the activities of independent audit and implementing the measures to support the development of independent audit activities;
  7. m) International cooperation on independent audit.
  8. Ministries, .
  9. People’s Committees of provinces and cities directly under the central Government within its duties and powers are responsible for the state administration on independent audit activities at its locality.

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