Quyết định 02/2020/QD-KTNN

DECISION

AUDIT PROCEDURES OF STATE AUDIT

STATE AUDITOR GENERAL

Pursuant to Law on State Audit dated June 24, 2015 and Law on amendments to Law on State Audit dated November 26, 2019;

Pursuant to Law on Issuance of Legislative Documents dated June 22, 2015 and Law on amendments to Law on Issuance of Legislative Documents;

At request of Director General of Department of Audit Policy and Quality Control and Director General of Department of Legal Affairs;

State Auditor General promulgates Decision on issuance of Audit procedures of State Audit.

Article 1. Attached to this Decision are Audit procedures of State Audit.

Article 2. This Decision comes into effect after 45 days from the date of signing and replaces Decision No. 08/2016/QD-KTNN dated December 23, 2016 of State Auditor General on issuance of Audit procedures of State Audit.

Article 3. Heads of entities affiliated to State Audit, State auditor teams, members of State auditor teams and relevant organizations and individuals are responsible for implementation of this Decision./.

AUDIT PROCEDURES

OF STATE AUDIT
(Attached to Decision No. 02/2020/QD-KTNN dated October 16, 2020 of State Auditor General)

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. Audit procedures of State Audit Office of Vietnam (hereinafter referred to as “Audit procedures”) prescribe procedures for audit affairs implemented by State Audit Office of Vietnam. Audit procedures are developed on the basis of Law on State Audit, State audit standard system and practical audit operations.

Audit procedures consist of 4 steps:

- Preparation;

- Audit;

- Production and submission of audit reports;

- Supervision and examination of implementation of audit conclusion and proposition.

2. In case of any situations that arise and are not specified under these Procedures, heads of auditor teams, members of auditor teams, organizations and individuals trusted or hired to perform audit and partner for state audit must report to Chief auditors or heads of entities assigned with audit tasks (hereinafter referred to as “Chief auditors”) to consult State Auditor General.

Article 2. Regulated entities

1. These audit procedures apply to entities affiliated to State Audit Office of Vietnam assigned to organize and conduct audit sessions, auditors of State Audit Office of Vietnam, members of auditor teams and entities affiliated o State Audit Office of Vietnam assigned to inspect, supervise, ensure quality control of audit and audit quality control team; organizations and individuals trusted or hired to perform audit, participate in state audit, entities subject to audit and other organizations, agencies and individuals related to audit operations.

2. Members of auditor teams who are not State auditors shall adopt these Procedures similar to State auditors.

Article 3. Purpose of Audit procedures

1. Ensure consistency in organization, implementation and management of audit and audit quality control of State Audit Office of Vietnam, auditor teams and members of auditor teams.

2. Create legal basis and occupational framework to organize positions in an audit and activities of auditor teams and State auditors; while act as the basis for examination, supervision, quality control and quality assessment of audit sessions and professional ethics of State auditors.

3. Serve as the basis for developing audit guidelines for each audit fields of State Audit Office of Vietnam.

4. Serve as the basis for developing systems of schedules, materials and training documents for all grades of State auditors.

Article 4. Requirements for auditor teams and members of auditor teams

1. Comply with Law on State Audit, State audit standards, Regulations on organization and operation of State auditor teams and relevant legislative documents.

2. Comply with general audit plans approved by State Auditor General. Any case of adjustment and deviation from the general audit plans must be approved by State Auditor General.

3. Conduct audit operations according to sequences specified under the Audit procedures. During audit process, heads of auditor teams or leaders of auditor groups must direct State auditors to record and gather all specific audit results of each phase in audit dossiers to collect all appropriate audit ground to use as the basis for all assessment, confirmation, conclusion, and proposition; apply software assisting audit operations and advanced technology to increase quality and effectiveness of audit operations and ensure information security as per the law; serve as the basis for supervision, examination and operation of audit activities, periodically consolidate audit results and produce reports on implementation progress to superior for timely measures in order to accomplish audit plans in terms of progress and quality.

4. Heads of auditor teams and chiefs of auditor groups are responsible for guiding members of auditor teams to comply with Audit procedures, supervising and examining tasks of team members to assess results, learn for experience and decide on tasks of the next phase.

Article 5. Quality control

Quality control of audit sessions of State Audit Office of Vietnam shall be implemented according to Law on State Audit, State audit standard 40 – Quality control and other State audit standards regulating audit quality, Regulations on audit quality control and other regulations of State Audit Office of Vietnam and relevant law provisions.

Article 6. Audit dossiers and documents

Preparation and storage of audit dossiers of audit sessions shall conform to Law on State Audit, State audit standard systems, Regulations on lists of audit dossiers, policies on submission, storage, preservation, extraction and termination of audit dossiers and other regulations on State audit and relevant law provisions.

Chapter II

PREPARATION

Article 7. Survey and information collection

Based on annual audit plans and list of audit contact points issued by State Auditor General, entities in charge of audit sessions shall:

1. Prepare, approve and submit survey outline

a) Prepare survey outline

Survey outline consists of following basic contents:

- Basis for survey;

- Basic information to be collected according to nature of audit sessions;

- Documents, dossiers and reports related to audited issues;

- Organization of survey crew (personnel performing survey, etc.);

- Surveyed entities;

- Time of survey:

- Estimated expenditure and material requirements for survey activities.

Note: (i) The survey may collect information gathered from previous surveys (for entities that have been previously audited) or information of the entities previously uploaded on audit database software system of State Audit Office of Vietnam, information extracted by information technology on electronic database of audited entities, relevant agencies, organizations and individuals; only request audited entities to provide additional information and changes compared to the previous audit sessions and information that has not been collected by methods mentioned above; (ii) Schedules for information must conform to applicable reporting regimes of the Government related to audit sessions; in addition, may add other necessary annexes for consolidated reports (but in a limited manner); (iii) Survey for information must serve preparation of general audit plans and specific audit plans in entities expecting to conduct audit; (iv) Organize personnel of survey group to not trouble audited entities, allocate experienced auditors with appropriate experience, professional level and capacity and comply with expected primary personnel of auditor teams; (v) Heads of auditor teams preparing survey outlines must specify criteria and information to be collected under audit dossier forms (depending on fields of audit) and annexes attached thereto, submit to auditor groups and request chief auditors to approve prior to implementation.

b) Approve survey outline

Chief accountants shall approve survey outline before sending to surveyed entities and conduct the survey.

c) Submit survey outline

Survey outline shall be attached to Official Dispatch on survey outline and sent to surveyed entities before adopting procedures for surveying and collecting information.

2. Survey and information collection

Survey and information collection shall conform to regulations from Section 13 to Section 44 of State audit standard 1315 - Determination and assessment of risks with materiality flaws via understanding about audited entities and working environment of financially audited entities; Section 9 to Section 11 State audit standard 1800 – Note for financial audit prepared according to framework for preparation and presentation of financial statements for special purposes; Section 11 to Section 12 of State audit standard 1805 – Note for separate financial audit and audit of factors, accounts or specific clauses of financial statements; Section 18 to Section 20 State audit standard 3000 – Guidelines for operational audit; Section 10 to Section 13 of State audit standard 4000 – Guidelines for compliance audit and other relevant organizations of State Audit Office of Vietnam.

During survey, survey teams must comply with approve survey outline, minimize physical survey at entities: physical survey is only required if data stored at State Audit Office of Vietnam is missing and cannot be adequately collected remotely via information technology on electronic database of audited entities, relevant agencies, organizations and individuals or reports of entities are inadequate or behind schedule.

2.1. Collect information on audited entities, working environment, financial situations and other relevant information

a) Information to be collected

Depending on form of audit, objectives and requirements of audit sessions, identify information to be collected, including:

- Characteristics of entities: Field of management, operation; functions, tasks, organizational structure; management hierarchy of entities; operational procedures and changes compared to previous sessions.

- Regulations and other factors affecting operations of entities: Policies of Government; management mechanisms, relevant policies and legislative documents; specific regulations applicable to entities; instructional and operational documents of authorities that greatly impact financial and budget management (if any).

- Accounting policies that entities are currently applying; regulations on framework for preparation and presentation of financial statements and financial information of audited entities.

- Financial situations of entities:

(i) Financial statements for each field of audit: Reports on financial situations, operational results, collection and expenditure of state budget and statement of operational cost; State budget final account: Funding sources and use, statement thereof; Accounting balance sheet, results of business operation and execution of obligations to the government; Final account for completed investment projects; Implementation and settlement of investment projects; ...

(ii) Other financial data information related to audit sessions.

- Management, use and effectiveness of financial resources; financial and budget management in entities (namely preparation, compliance and settlement of finance, budget, etc.), operations and trades; information related to financial management and other important public assets; implementation of assigned tasks and criteria.

- Measurement and assessment of operational results of entities.

- Inspection, examination, accounting and investigation: Errors and defects discovered and recorded from previous audit sessions; issues, inspection and investigation producing conclusions related to audit period; implementation of conclusion of inspection, proposition and audit; criteria currently under inspection and examination.

- Conflicts regarding economic and financial agreements and other conflicts; proceedings awaiting trial and recent proceedings with trial results related to audited entities; complaints and accusations of employees and other relevant individuals (if any).

b) Methods of collecting information

- Consider and compare documents regulating management and use of resources;

- Discuss and interview managers and employees in charge of entities;

- Research reserved documents of State Audit Office of Vietnam related to audited entities;

- Contact with professional regulatory authorities and superior regulatory agencies in person;

- Extract information related to audited entities on mass media;

- Request audited entities and relevant agencies, organizations and individuals related to audit sessions to produce reports in writing providing information and documents serving audit adequately and promptly;

- Access national database and electronic data of audited entities, agencies, organizations related to audit operations to extract and collect information related to audit contents and scope; access to data must conform to regulations and law and be responsible for ensuring confidentiality, security and safety as per the law;

- Extract relevant information depending on audit requirements and other specific issues.

Note: during survey and information collection, collect information for preparation of general audit plans and specific audit plans.

2.2. Collect information on internal control system

a) Information on internal control system to be collected

- Controlled environment: Inform about integrity and moral value; ensure capacity and professionalism of employees; operation of independent control mechanism; philosophy and operational method of heads; appropriate organizational structure; assignment of powers and responsibilities; policies on personnel.

- Guiding documents of authorities

- Risk assessment (administration) procedures of entities: If entities have developed risk assessment procedures, research and assess conformity of the procedures or identify major defects in internal control thereby causing assessment procedures to fail to detect materiality errors. If entities have not developed risk assessment procedures or standardized risk assessment procedures, assess severity in internal control in case of no risk assessment procedures.

- Information systems related to preparation and presentation of financial statements including relevant operational procedures and information exchange (for financial audit): Trades that are important for financial statements; procedures and documents for preparing, recording, processing and revising economic affairs; methods of accessing and processing information; entry control; procedures for preparing and presenting reports, including important accounting estimation and explanation; methods of exchanging information among heads, control department and external agencies.

- Relevant control operations: Research control operations related to audit sessions which are considered necessary by State auditors to assess risks with materiality defects in data level; control operations ensuring direction of heads of entities: approval and assessment of operation and information processing, material control and implementation of principles in assigning tasks; prioritize audit operations related to significant risks and deemed relevant by auditors, activities controlling operations and trades considered to have a higher risk of materiality defects; methods of dealing with errors originating from information technology.

- Supervise and control: Supervise and control preparation and presentation of financial statement; preparation and dealing with arising economic affairs; measures for rectifying flaws in control operations of entities.

When researching control systems of entities, State auditors shall follow instructions from Section 18 to Section 44 of State audit standard 1315 – Risk determination and assessment via understanding about audited entities and working environment of entities in financial audit; Section 11 State audit standard 4000 – Guidelines for compliance audit.

b) Methods of collecting information on internal control system

Primary method:

- Update on assessment of previous audit sessions;

- Discuss and interview relevant managers and employees of entities;

- Examine and analyze relevant reports and documents;

- Request reporting entities to provide information based on outline;

- Directly supervise some phases in operations of entities;

- Physical monitor (if necessary);

- Test some phases of internal control procedures (if any).

Article 8. Assessment of internal control system and collected information

1. Assessment criteria

Assess adequacy, effectiveness, efficiency, credibility and limitations of internal control system and collected information serving as the basis for risk assessment and determination of audit errors.

2. Methods of implementation

a) Consider and assess information on internal control system of entities via collected information (organizational charts, assignment, allocation, capacity of managing employees, audit charts, internal managing documents and internal audit organization) and assessment results of previous audit sessions; results of exchanging and interviewing relevant managers and employees; results of examination and analysis of reports and relevant documents; results of direct monitor of several phases in activities of entities; test results of several phases of internal control procedures.

b) Assess integrity, effectiveness and efficiency of internal control system via multiple methods (analysis, comparison, balance, list, sample selection, etc.)

Methods of accessing for assessment:

- Identify objectives of internal control;

- Identify current internal control procedures in entities;

- Important control operations that are still missing;

- Limits and drawbacks of internal control system;

- Possible consequences due to lack of important control operations and limits, drawbacks of internal control system;

- Measures for rectifying defects of internal control system.

Procedures for assessing internal control system shall conform to regulations from Section 18 to Section 44 of State audit 1315 - Determination and assessment of risks with materiality flaws via understanding about audited entities and working environment of financially audited entities; Section 11 State audit standard 4000 – Guidelines for compliance audit; Section 24 State audit standard 3000 – Guidelines for operational audit.

Article 9. Preparation of general audit plans

On the basis for survey, collection and assessment of information on internal control system, financial information and other information about audited entities, general audit plans prepared according to Section 11 to Section 35 State audit standard 1300, Section 21 to Section 48 State audit standard 3000, Section 8 to Section 38 State audit standard 4000 and forms for general audit plans prescribed by the State Auditor General. General audit plans consist of following basic contents:

1. Audit objectives

Audit objectives determined based on annual audit orientation of State Audit Office of Vietnam; requirements and nature of audit sessions; characteristics and actual state of audited entities or audited issues. Depending on form of audit, primary objectives of audit sessions can be:

- Verify credibility and truthfulness of financial statements, final accounts and financial information;

- Examine, assess and verify compliance with regulations and law and local regulations of audited entities;

- Assess economic features, effectiveness and efficiency in management and use of public finance and public assets;

- Detect cases of corruption, waste and violations in management and use of public finance and public assets, clarify responsibilities of groups, individuals to request competent authorities to take actions against violations as per the law; request disposal of finance and assets found to be violating regulations and law; specify violations and limitations in management and request audited entities and superior thereof for rectification measures and adjustment of internal management; detect drawbacks to request the National Assembly, Government, Prime Minister and other agencies of the Government to amend mechanisms, policies and regulations and law to ensure effective use of financial resources and public assets.

2. Determine and assess risk of materiality flaws

On the basis of collected information and analysis, assessment results, State auditors shall assess inherent risks and control risks and combine into risk matrix to identify and assess risks of materiality defects depending on severity (high, moderate, low):

a) For financial audit: determine and assess risks of financial statements and risks in data level of clauses, trades, account balance and explanation. In which, pay attention to:

- When determining and assessing risks of materiality defects, pay attention to significant risks usually related to unusual trades and issues to be considered: Further intervention of heads of entities in settling audit and preparing financial; further physical intervention in data collection and processing; complicated calculation or audit principles; unusual trades hindering entities from performing control measures effectively; audit and audit estimation explained in different manners; objective and complicated assumptions; audit estimations whose measurement of said estimations contain uncertainties.

- If risks are considered significant, deem: Whether the risks originate from intentional or unintentional acts; risks related to drastic changes; complexity of trades; risks related to important trades; importance in quantifying financial information, especially quantification that contain uncertainties; risks related to major trades beyond normal operation of entities or irregularities.

- When identifying significant risks, investigate control operations of entities and risk handling measures related to said risks. In case control measures which entities apply for significant risks fail to deal with the risks, this shall be considered major flaws in internal control operations.

b) For operational audit: assess risks of events that may cause unwanted negative impact thereby leading to failure to achieve economic property, effectiveness and efficiency.

c) For compliance audit: assess risks of incompliance and possible consequences if said incompliance is related to audit contents.

Procedures for determining and assessing audit risk shall conform to regulations from Section 5 to Section 12 and Section 45 to Section 56 of State audit 1315 - Determination and assessment of risks with materiality flaws via understanding about audited entities and working environment of financially audited entities; Section 23 to Section 24 State audit standard 3000 – Guidelines for operational audit; Section 16 to Section 18 State audit standard 4000 – Guidelines for compliance audit; Instruct audit access methods based on risk assessment methods and identify materiality in each audit fields of State Audit Office of Vietnam and other relevant regulations of State Audit Office of Vietnam.

3. Determine audit materiality

Based on analysis and assessment results of information on audited entities and risk assessment results, State auditors shall determine audit materiality:

- For financial audit: Determine level of materiality for general financial statements; level of materiality of clauses, trades, account balance and explanation to be aware of (if any); materiality of implementation; insignificant error threshold; materiality clauses, trades and explanation.

- For compliance audit and operational audit (if any): Identify material details and issues.

Procedures for determining audit materiality in preparing general audit plans shall conform to State audit standard 1320 – Determination and utilization of materiality in financial audit; Section 21 to Section 22 State audit standard 3000 – Guidelines for operational audit; Section 19 to Section 24 of State audit standard 4000 – Guidelines for compliance audit, Guidelines for audit based on risk assessment and determination of audit materiality in each audit fields of State audit and other relevant regulations of State Audit Office of Vietnam.

4. Audit contents

a) Audit contents shall be determined based on guidelines for objectives, materiality, and annual primary audit contents of State Audit Office of Vietnam, objectives of audit sessions; characteristics and actual state of audited entities or audited issues. Depending on nature of each audit session, audit contents shall be determined according to Article 32 of Law on State Audit, to be specific:

- Financial statement: Assess and verify credibility and truthfulness of financial information and financial statements, final accounts of audited entities (Audit contents shall specify financial information and specific objectives of financial statements to be verified in audit plans depending on reporting regimes within field of operation of audited entities and objectives of audit sessions).

- Compliance audit: Assess and verify compliance with regulations and law and local regulations of audited entities (Specific audit contents shall depend on objectives of each audit session and regulations and law and local regulations).

- Operational audit: Assess economic property, effectiveness and efficiency in management and use of public finance and public assets (Specific audit contents shall depend on objectives of each audit session and audited issues; assessment may cover up to 3 contents depending on requirements of audit sessions).

b) Based on requirements of each audit session, State Auditor General shall decide on contents of each audit session.

c) Specific audit contents shall be determined based on requirements and nature of audit sessions, actual state of audited entities and shall be divided into: (i) Contents, clauses, quotas, trades, account balance and material audit explanation; (ii) Other contents, clauses, quotas, trades, account balance and other explanation.

d) When determining clauses, quotas, trades, account balance and material audit explanation, State auditors must pay attention to:

- Issues, contents, clauses, quotas, trades, account balance and explanation may contain significant errors namely: Large scale, risks of material defects, being materiality of the field, quotas displaying unusual fluctuation or errors.

- Regarding quantification of clauses and quotas greater than material level of general financial statements. In case clauses and quotas greater than material level of financial statements are determined to be immaterial clauses and quotas, present evidence showing absence of material flaws in said clauses and quotas.

5. Audit methods and procedures

a) Identify audit methods and procedures according to Section 31 State audit standard 1300 – Preparation of audit plans of financial audit; State audit standard 1330 – Risk handling measures in financial audit; Section 33 to Section 36 State audit standard 3000 – Guidelines for operational audit; Section 35 State audit standard 4000 – Guidelines for compliance audit.

b) Determine necessary audit procedures suitable for contents and nature of clauses and based on assessment results of risks of material flaws in data transmission level. Contents of audit procedures must display objectives of said procedures (namely controlled testing or basic testing), procedures and methods for collecting audit evidence according to Section 21 to Section 30 of State audit standard 1500 – Audit evidence in financial audit, Section 67 to Section 76 of State audit standard 3000 – Guidelines for operational audit, Section 46 of State audit standard 4000 – Guidelines for compliance audit (Monitor; examine, compare; verify and confirm externally; recalculate; investigate; interview; analysis procedures; reimplementation) and other specific audit methods and procedures.

c) In case of consolidated financial audit, State auditors shall comply with State audit standard 1600 - Note for financial audit of corporations.

6. Determine audit criteria

Audit criteria shall be determined for each audit session depending on objectives and contents of audit sessions and suitable for affairs such as examination for verification or examination for assessment.

a) For financial audit, determination of audit criteria shall comply with Section 26 to Section 28 of State audit standard No. 1300 – Preparation of plans for financial audit.

b) For operational audit, determination of audit criteria shall comply with Section 37 to Section 43 of State audit standard 3000 - Guidelines for operational audit.

c) For compliance audit, determination of audit criteria shall comply with Section 28 to Section 32 of State audit standard 4000 - Guidelines for compliance audit.

7. Audit scope

a) Audit period: Determine accounting period (financial year) or the period from the beginning until the end of programs, projects or fundamental constructions or estimated audit period, etc.

b) Identify audited entities (general audit, specific audit); projects subject to specific audit; criteria for selecting entities and projects for specific audit (if entities and investment projects are not selected in annual audit plans approved by State Auditor General); in case general audit perform examination or comparison revealing entities that do not conduct specific audit, specify number of entities estimated to be examined or compared.

8. Audit duration

Audit duration shall conform to Article 34 of Law on State Audit, to be specific:

- Duration of an audit session shall begin from the date on which audit decisions are issued until the audit session in audited entity concludes.

- Duration of an audit session shall be no more than 60 days. In case extension of audit duration, State Auditor General shall decide to extend once for no more than 30 days.

- For audit sessions to assess economic property, effectiveness and efficiency in management and use of public finance and public assets on a nationwide scale, State Auditor General shall decide specifically on audit duration.

9. Assignment of audit personnel

- Determine personnel of auditor teams: Heads, vices (if any), leaders (if any) and members of auditor teams according to Law on State Audit and regulations on State audit.

- Assign leaders and members of auditor teams depending on their capacity while ensuring principles of independence and objectivity and complying with Law on State Audit and regulations on State audit.

10. Expenditure and necessary material requirements for audit sessions.

General audit plans must determine expenditure and necessary conditions for audit sessions namely: Expenditure on travel, accommodation and equipment serving operation of auditor teams.

Article 10. Approval, completion and issuance of general audit plans

1. Chief auditors shall approve general audit plans

Review and appraisal departments (General Department, Audit quality control team) shall be assigned to assist chief auditors in appraising general audit plans, appraise, prepare appraisal reports and present to chief auditors for approval in a manner satisfactory to following provisions:

a) Compliance with forms for general audit plan in terms of structure and contents of general audit plans.

b) Adequacy and legitimacy of information on internal control system, financial status and other information; legitimacy in assessing internal control system and collected information.

c) Suitability of risk assessment and determination of audit materiality.

d) Compliance with guidelines for audit objectives of State Audit Office of Vietnam in determining audit objectives and contents.

dd) Suitability between audit objectives, materiality, contents, scope, methods, procedures and collected information, assessment of internal control system, financial information, other information, and among said contents.

e) Legitimacy in assigning audit time and schedule; assigning personnel for audit implementation.

Chief auditors shall organize appraisal of audit plans with the following compositions: Chief auditors or persons authorized by chief auditors, expected heads of auditor teams, survey teams, heads of General departments, representatives Audit quality control team and other individuals decided by the chief auditors. Appraisal and approval of general audit plans of chief auditors must be recorded according to regulations of State Audit Office of Vietnam.

2. State Auditor General shall approve general audit plans

Control and appraisal entities shall be assigned to assist State Auditor General in appraising general audit plans, appraise, prepare appraisal reports and present State Auditor General to organize appraisal as per the law.

a) Appraisal contents of audit plans according to Clause 1 Article 10 of these Procedures.

b) State Auditor General shall organize meetings for approval of general audit plans; time, location and compositions of the meetings shall be decided by State Auditor General.

c) General Department shall take charge cooperating with State Audit Office of Vietnam in drafting Notice on conclusions of State Auditor General or persons authorized by State Auditor General in meetings for approval of general audit plans. The deadline shall be 1.5 working days from the date on which meetings for approval of general audit plans of State Auditor General conclude.

3. Complete, sign for approval, issue and revise general audit plans

a) Chief auditors shall direct expected heads of auditor teams (approved by State Auditor General in meetings for approval of general audit plans) to complete general audit plans according to conclusion of State Auditor General or persons authorized by State Auditor General, prepare dossiers and present to State Auditor General (via General Department by email or physical copy for examination and control) as per the law; Draft audit plans once General Department has examined, reviewed and agreed upon, chief auditors shall sign, stamp and send to heads of State Audit Office of Vietnam and entities according to regulations of State Audit Office of Vietnam.

b) In case general audit plans need changing during audit process:

- In case audit objectives, level of materiality, contents, scope, limitations, location and duration and compositions of auditor teams: Heads of auditor teams shall report to chief auditors in writing to request State Auditor General to consider, decide and only implement once State Auditor General has decided.

- In case of revision of audit period of auditor groups in audited entities without increasing or reducing audit period of audit sessions or personnel reassignment among auditor groups in auditor teams, heads of auditor teams shall request chief auditors in writing to consider and approve according to regulations on decentralization of State Audit Office of Vietnam.

Article 11. Preparation and approval of specific audit plans

1. Prepare specific audit plans

a) Based on general audit plans, results of information research on internal control system, financial information and information related to entities subject to specific audit (including collect addition information if necessary), heads of auditor groups shall analyze information, assess internal control system, assess level of risks, identify audit materiality, identify approach to risks for each audit content, procedures for collecting audit evidence for each audit content, audit period for each audit content, personnel of auditor groups to develop specific audit plans according to Section 36 to Section 39 of State audit standard 1300 – Preparation of plans for financial audit, Section 49 to Section 54 of State audit standard 3000 – Guidelines for operational audit, Section 39 to Section 42 of State audit standard 4000 – Guidelines for compliance audit and forms of specific audit plans prescribed by the State Auditor General.

Specific audit plans must conform to general audit plans and regulations of State Audit Office of Vietnam, which commonly convey following basic contents:

- Basic information on entities and financial management;

- Audit objectives;

- Assessment of internal control system and analysis of collected information;

- Assessment of level of risks of material flaws;

- Determination of audit materiality;

- Audit contents, methods and procedures;

- Audit selection for each material clauses (determine sample distance and selection methods);

- Audit scope and limitations;

- Assignment of audit tasks for members of auditor groups and estimation of progress, time and location of task implementation;

- Other documents according to regulations of State Audit Office of Vietnam.

b) In case auditor groups manage to select agencies, organizations and individuals related to audit operations to be examined or compared during preparation of specific audit plans, produce annexes of examination and comparison plans (attached thereto). In case auditor groups fail to select related agencies, organizations or individuals for examination and comparison during preparation of specific audit plans, as soon as related agencies, organizations and individuals are selected for examination and comparison during audit process, auditor groups shall prepare plans for examination and comparison (together with written request), request heads of groups to approve and report to chief auditors and heads of State Audit Office of Vietnam in charge of entities presiding audit sessions before implementing according to Law on State Audit.

c) In case of large scale audit sessions, audit sessions that are implemented in multiple locations (in multiple provinces) or information related to entities and subject of audit that lacks conditions for further discussion, auditor groups shall draft specific audit plans based on current information and request heads of auditor groups to approve before presenting to heads of State Audit Office of Vietnam to sign audit decisions. When implementing audit in entities, auditor groups shall collect missing information to complete specific audit plans and request heads of auditor teams to approve but must finish within the deadline of State Audit Office of Vietnam.

d) In case auditor groups do not form auditor teams, have adequate information when preparing general audit plans and prepare additional annexes dictating tasks and time for implementation of auditors and annexes on audit form selection, specific audit plans are not required.

2. Approval and revision of specific audit plans

a) Heads of auditor groups shall prepare and present specific audit plans to heads of auditor teams before requesting State Auditor General (or authorized individuals) to sign decisions on audit.

b) After receiving specific audit plans presented by heads of auditor groups, heads of auditor teams shall rely on general audit plans, collected information about audited entities, etc. to examine and consider approval if satisfactory to requirements, in case specific audit plans suffer from drawbacks or limitations, request heads of auditor groups to revise then approve revised specific audit plans. After approving specific audit plans, heads of auditor teams shall send specific audit plans to control entities as per the law before requesting State Auditor General (or authorized individuals) to sign decisions on audit.

c) In case specific audit plans need changing during audit process:

- Heads of auditor groups shall request heads of auditor teams in writing to clarify reasons for change: For heads of auditor teams to approve (if within competence of heads of auditor teams according to regulations of State Audit Office of Vietnam: cases of revised specific audit plans conforming to approved general audit plans) and report to chief auditors in charge of audit sessions; or for heads of auditor teams to request competent authorities to approve (if within competence of authorities according to Point dd Clause 2 Article 10 and regulations of State Audit Office of Vietnam) and only implement after being approved by competent authorities.

- After approving revised specific audit plans, heads of auditor teams shall send revised specific audit plans to control entities as per the law.

Article 12. Decisions on audit

1. Once general and specific audit plans have been approved, State Auditor General (or authorized individuals) shall sign decisions on audit.

Details of decisions on audit shall conform to Article 31 of Law on State Audit, to be specific:

- Legal basis for audit implementation;

- Audited entities;

- Audit objectives, contents and scope;

- Audit location and duration;

- Heads and members of auditor teams.

2. Decisions on audit must be sent to audited entities and members of audited teams before the deadline specified under Article 31 of Law on State Audit.

3. During audit process, if audit contents, scope, location or duration and members of auditor teams under decisions on audit need changing, State Auditor General shall issue decisions and send to audited entities and members of audited teams before the deadline as per the law.

Article 13. Publicizing audit decisions, general audit plans and updating, exchanging knowledge and experience for members of auditor teams

1. Heads of auditor teams shall publicize audit decisions, general audit plans, Regulations on organization and operation of State auditor teams and other relevant regulations to enable members of auditor teams to acknowledge audit objectives, requirements, risks, materiality, scope, limitations and duration.

2. Update knowledge and exchange necessary experience for members of auditor teams in following forms with following contents:

- Reports on practical operation, experiences in management, internal control, accounting professions, analysis of economic affairs, etc. of experts within and outside of the fields.

- Publicize mechanisms and policies on management of economy, finance, accounting, investment, credit, environment and specific lines of professions which audited entities must comply with depending on specific audit sessions (especially new regulations related to operation of audited entities).

Article 14. Preparation of necessary conditions for auditor teams

- Documents serving as legal basis for audit sessions and necessary documents on financial and accounting policies, etc.

- Documents of operational process of audited entities in previous years related to audit contents.

- Regulations on organization and operation of State auditor teams and documents guiding professions of State Audit Office of Vietnam.

- Other documents serving contact during audit process.

- Equipment and devices assisting audit, etc.

Chapter III

AUDIT

Article 15. Publicizing audit decisions

Chief auditors shall cooperate with audited entities in publicizing audit decisions; declare general audit plans, operation scope; clarify responsibilities and rights of heads and members of auditor teams, rights and obligations of audited entities according to regulations and law; agree on cooperated operation between auditor teams and audited entities.

Article 16. Audit

1. Collect information to complete or revise specific audit plans (if necessary)

In case of revision of specific audit plans, prepare, approve and report according to Point c Clause 1 and Point c Clause 2 Article 11 of these Procedures.

2. Collect and assess audit evidence

a) State auditors shall audit assigned sections

- Based on approved specific audit plans and assigned tasks, state auditors shall employ audit measures and audit evidence collection procedures to audit each content and clause to collect and assess audit evidence. Audit methods and procedures to collect audit evidence usually employed are: Observation; examination, comparison; external verification and confirmation; recalculation; investigation; interview; analysis procedures; reimplementation (according to Section 21 to Section 20 State audit standard 1500 – Audit evidence, Section 67 to Section 76 State audit standard 3000 – Guidelines for operational audit, Section 46 State audit standard 4000 – Guidelines for compliance audit) and specific measures namely on site inspection.

- State auditors must audit according to tasks assigned under specific audit plans; choose one or a combination of appropriate audit procedures to audit specific contents. During audit process, State auditors must reasonably employ audit procedures, knowledge and specialized deduction; documents as per the law to audit assigned tasks effectively and efficiently.

- Collection of audit evidence and assessment of collected audit evidence shall conform to State audit standard 1500 – Audit evidence in financial audit, Section 55 to Section 84 of State audit standard 3000 – Guidelines for operational audit and Section 43 to Section 61 of State audit standard 4000 – Guidelines for compliance audit.

- State auditors must have professional conducts via specialized deduction, display caution and occupational skepticism throughout audit sessions.

- If State auditors believe that a document may not be verified or revised without notice or contents, figures show signs of fault play during audit process, State auditors must report to heads of auditor groups to present to heads of auditor teams (if within competence of heads of auditor teams) for approval or for approval from superiors (if beyond competence of heads of auditor teams) for further examination namely: confirmation with third party; employment of experts and other legal methods to assess credibility of said document; examine and verify the document based on other information sources. If explanations of audited entities are inconsistent, State auditors must examine all inconsistencies in order to collect all appropriate evidence to confirm or reject suspicion of State auditors. Verification and investigation must be recorded and attached by collected evidence.

- If signs of violations, violations with signs of criminal and cases of corruption are found during audit process: State auditors and heads of auditor groups must promptly report to heads of auditor teams and chief auditors; Heads of auditor teams and chief auditors must promptly report to State Auditor General to direct clarification and solutions; while request audited entities to explain about found issues according to direction of heads of auditor teams, chief auditors and State Auditor General.

- During audit, if access and extraction on national database systems and electronic data of audited entities, agencies, organizations and individuals related to audit operations to collect information and documents directly related to audit contents and scope are required, State auditors must report to heads of auditor teams or authorize implementation and shall only implement with written authorization of heads of auditor teams. Implementation must be carried out under supervision for access and extraction limitations of audited entities, agencies, organizations and individuals related to audit operations, comply with regulations and law and be responsible for ensuring confidentiality, security and safety as per the law.

b) In case hiring of assessment experts and consultants is required, comply with Regulations of employment of audit partners of State Audit Office of Vietnam and State audit standard 1620 - Employment of experts in financial audit.

c) State auditors shall examine and review audit results: Before consolidating audit results, State auditors must examine overall audit results, credibility, legitimacy, appropriateness and adequacy of audit evidence; assess level of work implementation compared to plans and workload to audit; adopt additional audit procedures if necessary, collect additional audit evidence and systemize collected audit evidence.

d) State auditors shall consolidate audit results and report to heads of auditor groups during audit process: State auditors shall collect audit evidence and findings, consolidate audit evidence and findings and provide assessment, confirmation, propositions, conclusions and recommendation for audited contents; draft verification records for audit figures and situations and report to heads of auditor groups before sending to audited entities for explanation and clarification.

3. If discover cases of corruption, comply with Regulations on auditing cases with signs of corruption of State audit and Article 62 of Law on Anti-corruption No. 36/2018/QH14.

4. Notes for financial audit, compliance audit and operational audit

- In financial audit, when determining audit methods, State auditors may choose audit methods based on credibility and efficiency of internal control systems (compliance audit procedures) or adopt fundamental audit procedures based on assessment of State auditor for risks detected in data transmission level. Regarding fundamental audit procedures, State auditors may choose between analysis and detailed examination procedures.

In case of analysis procedures, State auditors shall conform to State audit standard 1520 – Analysis procedures in financial audit.

In case of collecting samples, sample size and components for detailed examination, conform to State audit standard 1530 – Collection of audit sample in financial audit and Guidelines for audit based on risk assessment and identification of audit materiality.

- Risk assessment for development of risk handling measures in financial audit shall conform to State audit standard 1315 – Identification and assessment of risks of material flaws via understanding of audited entities and working environment thereof in financial audit; State audit standard 1330 – Risk handling measures in financial audit; Audit risk management in operational audit and compliance audit shall conform to Section85 of State audit standard 3000 – Guidelines for operational audit and Section 62, Section 63 of State audit standard 4000 – Guidelines for compliance audit.

- Identification of materiality is the matter of specialized judgment and relies on analysis of State auditor regarding requirements of entities utilizing audit reports. Audit materiality must be considered throughout audit process. Identification of audit materiality and revision of level of materiality during audit process shall conform to State audit standard 1320 – Determination and utilization of materiality in financial audit; Section 21 to Section 22 State audit 3000 – Guidelines for operational audit and Section 19 to Section 24, and Section 61 State audit standard 4000 – Guidelines for compliance audit.

- Auditing opening balance in financial audit shall conform to State audit standard 1510 - Auditing opening balance in financial audit.

- Auditing accounting estimates shall conform to State audit standard 1540 – Auditing accounting estimates in financial audit.

- Auditing trades with relevant parties shall conform to State audit standard 1550 – Relevant parties in financial audit.

- Auditing events that occur after accounting period has concluded shall conform to State audit period 1560 – Events arising after accounting period; auditing events arising after audit period for compliance audit shall conform to Section 65 State audit standard 4000 – Guidelines for compliance audit.

- Considering assessment for going concern assumption in financial audit shall conform to State audit standard 1570 - Ongoing operational audit of entities in financial audit.

- Request for written explanation shall conform to State audit standard 1580 – Written explanation in financial audit; Section 86, Section 87 State audit 3000 – Guidelines for operational audit and Section 64 State audit standard 4000 – Guidelines for compliance audit.

- In case of consolidated financial audit, conform to State audit standard 1600 - Note for financial audit of corporations.

- Using results of internal auditors and experts’ work during financial audit shall conform to State audit standard 1610 – Use of internal auditors’ work in financial audit and State audit standard 1620 – Use of experts’ work in financial audit.

- Using results of authorities during audit process shall conform to Section 30 State audit standard 100 - Basic principles in operations of State Audit Office of Vietnam.

- Audit operations related to information, data, financial statement and comparison shall conform to State audit standard 1710 – Comparison information – Corresponding data and financial statement comparison, responsibilities of State auditors related to other information in financial audit.

5. Record audit documents and dossiers

State auditors shall record audit documents and dossiers according to State audit standard 1230 – Audit document and dossiers of financial audit; Section 123 to Section 127 of State audit standard 3000 – Guidelines for operational audit; Section 98 to Section 103 State audit standard 4000 – Guidelines for compliance audit and other regulations of State Audit Office of Vietnam on audit forms and schedules.

6. Heads of auditor groups shall examine all audit tasks executed by State auditors

a) Heads of auditor groups shall examine daily based on audit record or exchange, report daily tasks for contents which State auditors have difficulties in and contents with signs of violations or fraudulence. Examine audit evidence collected by State auditors, audit results and remarks of State auditors; assess level of achievement of tasks executed by State auditors; request State auditors to adopt additional audit procedures and contents, collect additional audit evidence if necessary. In case of detecting fraudulence, heads of auditor groups must direct to clarify responsibilities of individuals who allow fraudulence in audited entities and conform to State audit standard 1240 – Responsibilities of State auditors relating to fraudulence in financial audit. Section 56 to Section 57 of State audit standard 4000 – Guidelines for compliance audit and other relevant organizations of State Audit Office of Vietnam.

b) State auditors are responsible for complying with direction and conclusion of heads of auditor groups. In case other opinions differ from conclusion of heads of auditor groups, State auditors shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

7. State auditors shall sign records confirming audit figures and situations

a) Based on conclusion of heads of auditor groups, State auditors shall adopt procedures for auditing and collecting audit evidence to ensure appropriateness, adequacy and logic of audit evidence and results.

b) Consolidate audit results, exchange and acknowledge explanation of audited entities; reinforce evidence, provide audit assessment and confirmation; draft records for confirming audit figures and situations and present to heads of auditor groups before agreeing upon and signing the records with individuals related to audited contents of audited entities.

Discussing issues related to audit sessions and findings in financial audit with audited entities shall conform to State audit standard 1260 – Discussing issues with audited entities in financial audit; discussing preliminary audit findings and results in operational audit shall conform to Section 86 and Section 87 State audit standard 3000 – Guidelines for operational audit; exchanging information in compliance audit shall conform to Section 66 State audit standard 4000 – Guidelines for compliance audit.

In case opinions of individuals responsibly related to audited contents of audited entities disagree with audit results, assessment and confirmation provided by State auditors, State auditors shall request individuals with relevant responsibilities to specify their opinions in records for confirming audit figures and situations, countersign and officially explain in writing to report to heads of auditor groups for consideration.

Article 17. Preparation and approval of audit records of auditor groups for audited entities

1. Draft audit records of auditor groups in entities subject to specific audit

a) As soon as an audit session concludes, head of auditor group is responsible for consolidating audit results in records for confirming audit figures and situations prepared by auditors, audit records in entities allowed to choose form of specific audit, records of examination and comparison with third party and relevant audit evidence to draft audit record of the auditor group in the entity subject to specific audit.

b) Organize discussion among the auditor group about draft audit records of the auditor group in the entity subject to specific audit; in case of opinion(s) differing from conclusion of the head of auditor group, State auditors shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

c) The head of auditor group shall complete draft audit records of the auditor group in the entity subject to specific audit after discussing with the auditor group.

d) The head of auditor group shall present completed draft audit records of the auditor group in the entity subject to specific audit to head of auditor team for approval and submission to chief auditors (via audit quality control team) before approving audited entities.

2. Protect audit results recorded in draft audit records of the auditor group in the entity subject to specific audit to the head of auditor team

a) The head of auditor group must protect audit results in draft audit records of the auditor group in the entity subject to specific audit to the head of auditor team; report to the head of auditor team to consider and deal with discrepancy in opinions among the auditor group within their competence. Head of auditor team shall examine and review draft audit records, audit evidence; request the auditor group to clarify and explain the contents of draft audit records of the auditor group in the entity subject to specific audit; assess level of completion of audit plans and audit objectives; consider and deal with propositions of the auditor group; direct the auditor group to adopt additional audit procedures if necessary.

b) The head of auditor group and State auditors are responsible for complying with direction and conclusions of the head of auditor team, completing draft audit records to approve audited entities.

c) In case other opinions differ from conclusion of the head of auditor team, auditor group shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

3. Approve audit records of auditor groups in entities subject to specific audit

a) The auditor group shall approve audit records of auditor group in entity subject to specific audit approved by the head of auditor team; consider explanation and propositions of audited entity to complete audit records of the auditor group; agree upon and sign audit records of the auditor group; in case the audited entity disagree, the audited entity shall specify the disagreement, sign audit record and provide specific written explanation for the disagreement together with documents and basis (if any). The head of auditor group must send audit records of the auditor group to the head of auditor team before the deadline stated in Regulations on organization and operation of State auditor team.

b) In case the auditor group disagrees with explanation and propositions of audited entity or explanation and propositions of audited entity exceed entitlement of the auditor group, the head of auditor group must request head of audited entity to provide written explanation and report to the head of auditor team for decision. In case other opinions differ from conclusion of the head of auditor team, auditor group shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

Chapter IV

PRODUCTION AND SUBMISSION OF AUDIT REPORTS

Article 18. Preparation of draft audit reports

1. Consolidate audit evidence and results

Heads of auditor teams are responsible for consolidating all appropriate audit evidence and results to prepare audit reports according to regulations of State Audit Office of Vietnam.

In addition, State auditors must systemize and gather all relevant legislative documents to use as legal basis for audit remarks; other necessary documents related to audit sessions.

2. Examine, classify and consolidate audit results

a) Heads of auditor groups must organize examination, review and assessment of legitimacy of audit evidence and results according to State audit standard 1450 – Assessment of risks detected during financial audit, Section 26 State audit standard 1505 – External confirmation for financial audit, Section 31 to Section 47 State audit standard 1500 – Audit evidence in financial audit, Section 80 to Section 84 State audit standard 3000 – Guidelines for operational audit, Section 58 to Section 61 State audit standard 4000 – Guidelines for compliance audit.

b) Classify and consolidate audit evidence and results based on criteria, suitable for each field of audit and conforming to audit contents and forms regulated by State Audit Office of Vietnam.

c) On basis of detected flaws, State auditors shall estimate all flaws according to Section 48 State audit standard 1320 – Determination and utilization of audit materiality in financial audit, Section 20 to Section 22 State audit 1530 – Collection of audit sample in financial audit.

d) Adopt analysis procedures when forming audit remarks according to Section 19 to Section 22 State audit standard 1520 – Analysis procedures in financial audit.

dd) In case of failure to collect all appropriate audit evidence to conclude audit contents and draft audit reports, auditor teams must propose additional audit procedures or provide appropriate audit remarks regarding the audit contents according to State audit standard 1700 – Formation of audit remarks and audit reports in financial audit; State audit standard 1705 – Remarks other than unqualified opinions in financial audit reports; Section 80 to Section 84 State audit standard 3000 – Guidelines for operational audit; Section 58 to Section 61 State audit standard 4000 – Guidelines for compliance audit.

3. Preparation of draft audit reports

On the basis of results of consolidated audit situations and figures, heads of auditor teams shall prepare draft audit reports.

Audit reports must satisfy general requirements under State audit standard system and comply with forms regulated by State Auditor General. Audit reports usually consist of following basic contents:

a) Information on audited entities according to Section 19 State audit standard 1700 – Formation of audit remarks and audit reports in financial audit (including: Name of entities producing audited financial statements and final accounts; audited financial statements and final accounts; concluding date of accounting period or accounting date of each report in case of series of financial statements, etc.).

b) Overview of audit sessions: Basis of audit reports, audit scope, limitations and basis (including audit criteria); conducted audit affairs.

c) Audit assessment and confirmation: Audit finding results; Audit remarks. In which, for financial audit, present: “Responsibilities of State auditor team”, “Responsibilities of audited entities”, basis for formation of audit remarks before audit remarks according to Section 20 to Section 25 of State audit standard 1700 – Formation of audit remarks and audit reports in financial audit; issues to be emphasized and other issue (if any).

d) Conclusions, propositions and other details (if any).

dd) Explanations and schedules (if any).

e) Contents in form of writing: Signatures, seals, date of signing audit reports shall comply with regulations and law.

Preparation of draft audit reports must consider audit objectives and methods of audit sessions to comply with guidelines for preparation of audit reports specified under State audit standard system accordingly, namely: State audit standard 1700 – Formation of audit remarks and audit reports in financial audit; State audit standard 1705 – Remarks other than unqualified opinions in financial audit reports; State audit standard 1706 – “Issues to be emphasized” and “Other issues” parts in financial audit reports; State audit standard 1710 – Comparison information – Corresponding data and financial statement comparison, responsibilities of State auditors related to other information in financial audit; State audit standard 1800 – Note for financial audit prepared according to framework for preparation and presentation of financial statements for special purposes; State audit standard 1805 – Note for separate financial audit and audit of factors, accounts or specific clauses of financial statements; State audit standard 1600 – Notice when auditing corporate financial statements; Section 88 to Section 111 State audit standard 3000 – Guidelines for operational audit; Section 67 to Section 88 of State audit standard 4000 – Guidelines for compliance audit, Guidelines for audit based on risk assessment and determination of audit materiality in each audit fields of State audit.

4. Discuss and collect feedback of members of auditor teams

Heads of auditor teams shall organize discussion among auditor teams to gather feedback of members of auditor teams regarding assessment, confirmation, conclusion and propositions in draft audit reports; consider and acknowledge feedback of members of auditor teams, complete draft audit reports to request chief auditors to approve.

Discussion among auditor teams regarding draft audit reports must be kept record using forms regulated by State Auditor General. In case other opinions differ from conclusion of heads of auditor teams, State auditors shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

Article 19. Chief auditors approving draft audit reports

1. Auditor teams shall send draft audit reports to chief auditors while briefing State Auditor General on important results in advance (at least 7 days before organizing approval).

2. Chief auditors shall form boards of appraisal to appraise draft audit reports. Boards of appraisal and audit quality control teams are responsible for appraising and reviewing draft audit reports before chief auditors hold meetings for approval of draft audit reports.

Review and appraisal contents shall conform to procedures on preparation, appraisal, considering approval and issuance of audit reports of State Audit Office of Vietnam and consist of following basic categories:

a) Implementation results of general audit plans approved by State Auditor General in terms of objectives, contents, materiality, scope, limitations, audited entities, audit duration, etc.

b) Implementation results of directions of heads of State Audit Office of Vietnam (if any).

c) Adequacy and legitimacy of audit evidence used as the basis for audit assessment, confirmation, conclusion and propositions.

d) Correctness, adequacy and accuracy of figures; adequacy and legitimacy of audit assessment, confirmation, conclusion and proposition, and feasibility of audit proposition.

dd) Compliance with requirements for audit reports in State audit standard system.

e) Compliance with audit report forms in terms of structure and contents of audit reports; legitimacy and relevance in report presentation, grammar and spelling errors.

g) Compliance with regulations on documents of audit sessions.

Entities assigned to appraise and review audit must produce appraisal and review reports and present to chief auditors.

3. Chief auditors shall hold meetings for approving draft audit reports

a) Chief auditors must approve draft audit reports as per the law. Approval contents and results of draft audit reports must be recorded in meeting minutes of audit report approval meetings using regulated forms.

b) Heads of auditor teams shall complete draft audit reports based on conclusion of chief auditors in meetings for approving audit reports. In case other opinions differ from conclusion of chief auditors, heads of auditor teams shall have the rights to record differing opinions according to Regulations on organization and operation of State auditor teams.

c) Audit quality control teams shall organize examination for revision, adjustment and completion of draft audit reports before chief auditors present to State Auditor General for approval.

d) Chief auditors shall present State Auditor General with completed draft audit reports together with relevant documents as per the law while requesting competent entities to appraise and review at least 7 days in advance.

Article 20. State Auditor General approving draft audit reports

In order to enable State Auditor General to approve draft audit reports, State Auditor General shall assign competent entities to review and appraise draft audit reports.

1. Review and appraisal contents shall conform to procedures on preparation, appraisal, considering approval and issuance of audit reports of State Audit Office of Vietnam and consist of following basic categories:

a) Implementation results in terms of objectives, contents, materiality, scope, limitations and audited entities in general audit plans.

b) Compliance with general provisions on audit reports; logic and appropriateness between audit results and audit assessment, confirmation, conclusion and propositions; correctness and legitimacy of audit assessment, confirmation, conclusion and feasibility of audit propositions.

b) Appraise legitimacy of audit assessment, confirmation, conclusion and propositions in draft audit reports; reference for application of legislative documents in audit conclusion and propositions.

c) Details to be clarified to guarantee the legal basis of issuing audit assessment, confirmation, conclusion and propositions.

d) Additional conclusion and propositions to ensure compliance with regulations and law.

dd) Compliance with regulations on audit dossiers, forms and procedures in preparing audit reports; compliance with Regulations on organization and operation of State auditor teams.

e) Compliance with State audit standards, procedures for auditing and professionally handling audit results which are stated under audit reports.

g) Details to be clarified to guarantee that audit reports are produced and presented as per the law, specialized categories conform to State audit standard system and other relevant law provisions.

2. If necessary, competent entities assigned to appraise may request heads of auditor teams, members of auditor teams and entities presiding audit sessions to provide additional information, documents and accountability serving appraisal of draft audit reports.

3. State Auditor General shall regulate appraisal and review operations for audit reports and deadline for appraising draft audit reports for entities in charge.

4. Regarding important draft audit reports, Director of General Department shall provide State Auditor General with advice on establishment of Audit council to assist State Auditor General in appraising draft audit reports.

5. General Department shall take charge cooperating with State Audit Office of Vietnam in drafting Notice on conclusions of State Auditor General or persons authorized by State Auditor General in meetings for approval of draft audit reports. General Department shall finalize and issue within 1.5 working day from the date on which meetings for approving draft audit reports conclude.

Article 21. Completion of draft audit reports and collection of feedback of audited entities

1. Chief auditors shall direct heads of auditor teams to complete draft audit reports according to conclusion of State Auditor General or individuals authorized by State Auditor General in meetings for approval of draft audit reports.

2. Approved draft audit reports must be sent to audited entities for feedback within 30 days from the date on which audit sessions conclude at the entities according to Article 47 Law on State Audit; while draft audit reports and accountability reports must be sent to competent entities in charge of appraisal and review for monitor according to regulations of State Audit Office of Vietnam.

3. After receiving feedback of audited entities, chief auditors shall direct heads of auditor teams to present the feedback and solutions to State Auditor General for consideration. In case of inability to fully acknowledge all feedback, chief auditors shall direct heads of auditor teams to produce accountability reports for each feedback of audited entities and send to General Department prior to organization of meetings for declaring audit results.

Article 22. Audit results declaration

1. After receiving consent of State Auditor General, chief auditors shall direct heads of auditor teams to agree with audited entities on declaring audit results approved by State Auditor General to audited entities according to regulations of State Audit Office of Vietnam. Contents of meetings for declaring audit results must be recorded in meeting minutes using forms regulated by State Auditor General.

2. Chief auditors shall direct heads of auditor teams

a) complete draft audit reports according to conclusion of State Auditor General or individuals authorized by State Auditor General in meetings for declaring audit results to audited entities.

b) produce declaration on audit results: Provide summary of fundamental audit results and propositions presented in audit results (which have been completed according to conclusion of State Auditor General) to audited entities and other relevant entities.

c) On the basis of details agreed upon in meetings for approving draft audit reports, heads of auditor teams shall direct heads of auditor teams to review changed figures, assessment, confirmation, conclusion and propositions (if any) to serve as the basis for producing declaration on audit results in audited entities.

Article 23. Issuance of audit reports and audit result declarations

1. Chief auditors shall present completed audit reports, audit result declarations and other documents regulated by State Audit Office of Vietnam to State Auditor General (via competent entities in charge of appraisal and examination).

2. Assigned entities shall review, examine and guarantee contents and procedures for preparing audit reports and declare audit results as per the law; draft Official Dispatches on submission of audit results and request State Auditor General for signature and issuance.

3. Auditor groups shall produce declarations on audit results in entities subject to specific audit and declarations on conclusion and propositions with relevant parties conforming to issued audit reports and request heads of auditor teams to review for presentation to chief auditors for signature and approval.

4. Issuance and submission of audit reports must be guaranteed in terms of deadline regulated by Law on State Audit and specific provisions of State Audit Office of Vietnam. In case auditor teams or relevant entities detect errors or mistakes in audit reports after issuance of audit reports, chief auditors must request State Auditor General in writing for consideration.

5. Audit reports and declarations of audit results related to Government secret shall conform to regulations and law on protection of Government secret.

Chapter V

SUPERVISION AND EXAMINATION OF IMPLEMENTATION OF AUDIT CONCLUSION AND PROPOSITION

Article 24. Supervision and encouragement of implementation of audit conclusion and proposition.

Entities in charge of audit sessions or entities assigned to examine implementation of audit propositions are responsible for:

1. monitoring, collecting and consolidating information on audit conclusion and propositions of audited entities (including propositions of previous years that have not been implemented): In addition to encouraging entities to report on implementation results of audit propositions and report on examination for implementation of audit propositions of previous years, heads of later auditor teams in charge of audited entities in the following years are responsible for collecting information and assessment regarding implementation of audit conclusion and propositions of previous years of the audited entities (including propositions of previous years that have not been implemented) and evidence (if previously unavailable).

2. assessing implementation of audit conclusion and propositions.

3. organizing activities to ensure effectiveness in implementation of audit conclusion and propositions: Encourage or examine implementation of audit conclusion and propositions; handling complaints and audit propositions of audited entities.

4. reporting on implementation and audit conclusion and propositions.

Article 25. Preparation, appraisal and approval of examination plans, examination decisions, and preparation for examination in examined entities

1. Preparation, appraisal and approval of examination plans and examination decisions

Based on annual Notice on Examination plan or at request of State Auditor General, entities in charge of examination are responsible for:

a) preparing plans for implementing audit conclusion and propositions for each examination session in form of onsite examination at audited entities and relevant agencies, organizations and entities.

b) organizing appraisal and approval of plans for examining implementation of audit conclusion and proposition for each examination session (applied to heads of entities in charge of examination).

c) issuing decisions on examining implementation of audit conclusion and propositions for each examination session and sending to examined entities according to regulations o State Audit Office of Vietnam.

d) deciding on revising examination plans to guarantee effectiveness according to regulations of State Audit Office of Vietnam (applied to heads of entities in charge of examination) (except for cases of revision related to revision of annual examination plans).

Note: (i) Entities in charge of audit sessions must increasingly encourage entities to examine, collect evidence and prepare reports on implementation of audit conclusion and propositions together with evidence and send to State Audit Office of Vietnam; (ii) Only conduct examination for audit sessions that have not fully implemented audit conclusion and propositions, implemented regimes for reporting on implementation of audit conclusion and propositions or provided adequate evidence for implementation of audit conclusion and propositions; (iii) For mandatory examination for implementation of audit conclusion and propositions: Organize examination teams with simplified compositions; Focus on examining general contact points via which request entities subject to specific audit to report on implementation results and attach evidence for implementation of audit conclusion, propositions, self-examination and report to State Audit Office of Vietnam; Only conduct examination in entities subject to specific audit for audit sessions that have not fully implemented audit conclusion and propositions, implemented regimes for reporting on implementation of audit conclusion and propositions or provided adequate evidence for implementation of audit conclusion and propositions;

2. Preparation for each examination

Based on examination decisions and plans, heads of auditor teams are responsible for:

a) producing report outline to guide examined entities to prepare reports for examination teams; report outline must be attached to decisions on examining implementation of audit conclusion and propositions and sent to examined entities.

b) organizing meetings among examination teams to clarify approved examination plans, discuss specific measures for implementation of plans; assigning vices of examination teams, heads of examination teams and examination teams with specific tasks.

c) organizing preparation of other necessities.

Article 26. Organizing examination of implementation of audit conclusion and propositions in examined entities

Based on approved examination plans, examination teams shall organize examination in examined entities regarding complete and timely implementation of audit conclusion and propositions of State Audit Office of Vietnam.

1. Primary examination categories include:

a) Leadership of leaders and heads in directing and operating implementation of audit propositions of State Audit Office of Vietnam.

b) Deadline for submission of reports on implementation results of audit conclusion and propositions according to declarations of audit results in entities subject to specific audit and audit reports.

c) Implementation of all audit conclusion and propositions (including conclusion and propositions of previous years that have not been implemented), including: Carrying out economic operations and implementing obligations to state budget; complying with policies, regulations and law; disciplining groups and individuals; revising policies, management operation and other audit conclusion and propositions.

d) identification of audit conclusion and propositions that have been implemented and are being implemented together with specific evidence; conclusion and propositions that have not been implemented, (subjective and objective) causes and solutions.

2. Evidence collection

Collect evidence suggesting that audited entities have implemented conclusion and propositions of State Audit Office of Vietnam serving as the basis for preparation of records for examination of implementation of audit conclusion and propositions according to guidelines of State Audit Office of Vietnam and Ministry of Finance, namely: Deposit orders to State Audit Office of Vietnam, notice of receipt, documents for dealing with and rectifying propositions regarding adjusting financial and accounting management; evidence for disciplining groups and individuals; evidence for finalizing policies, etc.

Article 27. Preparation of examination records and reports; appraisal and issuance of examination reports; storage of examination documents

1. After examining an entity, heads of examination groups (or heads of examination teams in case of not establishing examination groups) shall make record of examining implementation of audit conclusion and propositions using form prescribed by State Audit Office of Vietnam.

2. Based on records for examining implementation of audit conclusion and propositions and relevant documents, heads of examination teams shall prepare reports on examining implementation of audit conclusion and propositions of audited entities and send to heads of entities in charge of the examination for appraisal.

3. Heads of entities in charge of examination are responsible for forming appraisal teams; organizing, assigning appraisal and preparing appraisal reports, draft examination reports on implementation of audit conclusion and propositions according to regulations and guidelines of State Audit Office of Vietnam.

4. Heads of entities in charge of examination are responsible for issuing reports on examining implementation of audit conclusion and propositions of examined entities and relevant agencies according to regulations and guidelines of State Audit Office of Vietnam.

5. Heads of examination teams are responsible for preparing and submitting documents on examining implementation of audit conclusion and propositions for storage according to regulations and law on document storage of State Audit Office of Vietnam./.