Comprehensive Development of Audit Types

In order for the quality of the annual report of the State Audit Office submitted to the National Assembly to meet the requirements of the State Audit Law, it is necessary to revise the annual report preparation process to suit the scale, organizational structure and division of tasks among current staff and functional departments. Some suggestions for revising and perfecting the annual report preparation and synthesis process are:

1) The special annual report is of great importance to both the State Audit Office and the agencies receiving the report, namely the National Assembly, the National Assembly Standing Committee , the Government, and the Prime Minister. Therefore, the amount of information that needs to be included in the report must be

considered, synthesized in a specific, practical and meaningful direction. The activities of the State Audit in a year are numerous, the results synthesized from all audit reports of regional audits and specialized audits are very large and diverse. However, if all are put into one report, it will be very long and difficult to recognize the focus of the issue that needs to be reported. The annual report should only include some basic findings of the State Audit.

The findings help the National Assembly make decisions on issues that have a major impact on national finances, such as deciding to amend the State Budget Law, amend the tax system, or other financial issues of national importance and under the authority of the National Assembly.

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Issues of great financial significance, related to ensuring the safety of the national financial system such as assessments of the monetary and financial system, operations

activities of the banking system, financial investment companies, and securities centers nationwide.

The findings help the National Assembly and the Government consider amending the targets in the State budget estimates, deciding on the allocation of the central budget and the settlement of the State budget in a cost-effective and efficient manner, better serving the rapid and sustainable development of the economy.

Findings about the shortcomings of the state apparatus organization system, about administrative reform to save NSSN expenditure but the state apparatus has

more efficient operating conditions.

2) In order for the annual report of the State Audit Office to have the best and most accurate information, it is necessary to attach importance to the preparation of reports from audit teams and audit delegations. These audit reports need to be discussed collectively and provide assessments, conclusions and recommendations commensurate with their position. It is necessary to clearly stipulate that each level must draft its own summary report, then a council of highly qualified people will synthesize it with easy-to-understand, summary language. This council will decide to select the most necessary issues to include in the annual report.

The report must have a reasonable structure in terms of sections such as: purpose of the report, basis for reporting, main content, recommendations, conclusions. The annual report is different from the annual public audit report because

That is, it needs to be complete and full of information for the audience of leaders to read and understand, different from the audience of public audit results to the public, which is mainly the masses and social classes. Therefore, the annual report needs to be written in two forms: a full report, usually 80-100 pages long, and bound into a volume for easy issuance and reference, and a summary report, 10-20 pages long, containing more condensed information to help readers and listeners grasp the most general and basic issues.

e. Develop a process for publicizing annual audit results

Annual audit results must be made public in accordance with the provisions of the State Audit Law. However, the disclosure of audit results must be conducted according to a unified process to ensure the following objectives:

Publicize audit results to improve the health of the national financial system and improve the efficiency of using state capital and assets.

Enhance the responsibility of managers as well as users of state money and assets.

Promote the role of the People in supervising the use of State capital and assets, effectively implement democratic regulations in financial activities, and contribute to effective anti-corruption.

Regarding the form of public disclosure, audit results must be announced in regular meetings of the National Assembly, the Government and on mass media such as newspapers, radio, television, internet...

3.3.2.3 Comprehensive development of audit types

The development process of the State Audit is a process associated with the development of audit types. The development experience of the State Audit of countries in the region and the world shows that in the early years, it often only applied the method of auditing financial statements, partly combined with compliance auditing and in

Conditions permitting it to be combined with performance audits. State Audit of Vietnam

is in this early stage. Countries with State Audit agencies that have developed for hundreds of years such as the Federal Republic of Germany, the Republic of France, the United Kingdom, etc. and in the Southeast region such as Thailand, Malaysia, also approximately 100 years. But in today's era, information technology has connected countries and organizations closer together, the achievements of a country are no longer limited to that country but are widely applied throughout the world. Therefore, on the basis of absorbing achievements in compliance auditing and auditing the activities of SAIs in the region and the world, the State Audit of Vietnam must have a strategy to develop its own types of auditing so that by 2010, the State Audit will have an average scale but have advanced levels in the region and the world, truly becoming a strong tool of the State in inspecting state finance and state assets.

Depending on the development and experience of each State Audit agency, each type of audit or all three types of audit will be conducted simultaneously.

For the State Audit Office, compliance audit and performance audit are developed.

are the types of audits that are focused on. ë Vietnam, since its establishment

Up to now, the State Audit has mainly performed financial statement audits. However, in the process of performing financial statement audits, the State Audit has combined compliance audits, such as: assessing compliance with financial and economic management of the audited unit; as well as in the process of auditing the

Which combines economic and effective evaluation of management work in units?

audited. In order for the State Audit to become a strong tool of the State in the inspection of state finance and state assets, meeting the requirements and demands of national financial management and in line with the trend of integration and development, the State Audit agency needs to synchronously deploy the following types of audits: financial statement audit, compliance audit, performance audit, economic responsibility audit of the head, pre- and in-process audit.

Currently, financial statement audits and compliance audits are being implemented relatively well, the remaining audit types need to be implemented quickly, specifically:

a. Operational audit

Gradually shifting from mainly performing financial statement audits to combining them with operational audits is a fairly fundamental transformation: from auditing a type of business activity to

The audit unit must be comprehensive; therefore, the State Audit Office needs to synchronously implement the following main solutions:

Soon complete the legal system on State Audit, in which it is necessary to ensure the

synchronization of law and must be specified by sub-law documents.

Immediately issue the auditing standards and the auditing process; these two auditing tools need to be completed in accordance with the requirements of the auditing.

Innovate the organization of the audit management apparatus towards high specialization. This is a requirement arising from the characteristics of the audit activity, which requires the auditors to have in-depth expertise in management, economic analysis, etc.

Innovate the method of organizing audits in accordance with the characteristics of specialization in economic activities. In economic activities, diverse evaluation criteria must be developed and selected to suit each group of units with similar characteristics and operational goals; therefore, it is necessary to choose methods of organizing activities.

appropriate audit activities, taking the types of audited units as the basis for organizing the audit team.

Renewing the professional structure of the technical staff through new selection and

retraining. This is an urgent task, because currently, the professional structure of the State Audit team has nearly 95% trained at university level in finance and accounting majors; when switching to implementing the State Audit, it requires not only financial and accounting professional capacity but also other professional capacity: economic management, state management.

Building a database of information on auditing activities. This is a solution that the State Audit Office of many countries has and is implementing. On the one hand, auditing requires a large amount of information on related policies, regimes, standards and norms.

to the type of audited unit. IT application in analysis and evaluation must use many tools, calculation models and electronic data.

Develop a suitable roadmap for implementing the State Audit's activities. The roadmap for implementing the activities will follow two directions:

Gradually expand the audit objectives in all audit areas, from financial statement audit and compliance audit to assessing the economy, efficiency and effectiveness in the management and use of state financial resources; on that basis, continue to expand to other economic resources of the unit.

Gradually develop the scope of KTHĐ, based on the selection of a number of models

audited units, then gradually expand the scope. First, deploy in some types of units that have advantages in building and selecting performance criteria: state-owned enterprises; construction investment projects...

Building evaluation standards in the audit, this is a very important step in the audit process, to implement a satisfactory audit, it is necessary to build a system of evaluation standards as a basis for auditors to make comparisons and conclusions about the activities of the audited subjects that take place in reality, on that basis, recommendations can be made in the audit report. Each industry and field has different technical and technological characteristics, so there cannot be a system of common criteria, on the other hand, in Vietnam, there are also fully promulgated norms, technological processes and other standards.

Requirements and mandatory standards are systematic, so it is necessary to carefully study each

The audit object is the relevant State regulations to provide a system of criteria as a measure to evaluate and operate the audit object. A system of criteria must meet the following requirements:

It is necessary to develop guidelines on audit activities, because the State Audit Office only issues a general audit process that includes the most basic forms and contents. The sequence of audit activities also includes 4 steps: Audit preparation, audit implementation, audit report preparation, and inspection of the implementation of recommendations. However, the content and methods of audit and methods of evidence collection have differences.

different from the specific type of financial statement audit.

b. Auditing economic responsibility during the term of office for leading officials in the state apparatus and state economic units

Auditing economic responsibility for leaders is an activity of inspection and evaluation by the State Audit Office on the authenticity, legality and effectiveness of operations.

Financial revenue and expenditure activities and other related economic activities of localities and units during the term of office of leaders, on that basis, assess the economic responsibility of leaders of units. Economic responsibility auditing in China began in the 80s of the last decade to meet the requirements of management and supervision of cadres in the process of reforming and developing the socialist market economy. Vietnam and China are two countries with similarities in terms of political institutions and national construction policies as well as in the process of economic reform from a centralized bureaucratic subsidy mechanism to a market economy, so China's successes in the fight against corruption are meaningful and have good reference value for Vietnam. The role of economic responsibility auditing for leaders is shown in:

Economic responsibility audit helps management agencies monitor cadres

To specifically and properly determine and monitor the implementation of economic responsibilities of leaders. This is the basis for superior agencies, competent agencies, units, and civil servants to evaluate accordingly.

comprehensive and transparent response to the right and wrong actions of leaders during their tenure.

The results of economic responsibility audits are an important reference in the election and candidacy for elected bodies, and at the same time are the basis for the cadre management agency to use cadres in a reasonable and accurate manner.

Enhance the sense of self-awareness of leaders in fulfilling economic responsibilities and complying with legal regulations on finance and economics.

Has the effect of deterring, preventing and fighting corruption and waste, strengthening the work of cadre management.

Timely handle violations of the law by the auditing unit, rectify financial management work for the audited unit.

Economic responsibility audits need to choose a time suitable for assessment through a process that ensures objectivity and honesty, so they can be conducted in the following cases:

Leaders before the end of their term, or being promoted, before the election, appointment, rotation, dismissal, resignation, retirement during their term of office.

Periodic accountability audits of incumbent leaders, possibly annually or every few years.

Unscheduled audits at the request of competent authorities, management agencies, and Party and State cadre inspection agencies, when there are complaints, denunciations, or other urgent requests.

The types of leaders who are subject to audit responsibility for term-based audits can be divided into two types:

1) Leaders of party agencies, governments, and organizations at all levels from central to local.

2) Leaders of state-owned enterprises and state economic organizations.

It is necessary to develop the content and scope of audit responsibility audit by term to suit the practice and requirements for staff assessment.

At the same time, the State must develop regulations on inter-sectoral coordination between many agencies in both coordinating inspection work and having authority.

to process audit results. For the State Audit Office, it is necessary to develop strict and specific audit instructions according to the general process of the State Audit Office, which includes four steps: audit planning; audit implementation; audit results reporting; and checking the use of audit results.

c. Strengthen audits before and during the unit's operations.

audited

In recent years, the State Audit has mainly conducted the following type of audit, also known as post-audit. Post-audit is mainly associated with financial statement audit and compliance audit. Post-audit is performed when the completed work is finished and the financial report (final settlement) is prepared. The form of post-audit is mainly applied to the audit of annual financial statements or final settlement reports of completed works, projects, and target programs. The audit work

takes place after the economic and financial activities of the unit. This method

is popular not only in our country but also in the world, however in some cases it has proven to be ineffective in preventing and stopping the wasteful use of limited State resources in the

Investing in projects that do not bring social benefits or spending on ineffective activities that are not really necessary for society.

Therefore, in the Lima Declaration on Auditing Guidelines applicable to countries in the INTOSAI organization at points 2 and 3 of paragraph 2 of chapter I, the provisions

General provisions mentioned. “ The effective conduct of pre-audit work is inseparable from the sound management of state financial trust funds ” and “ Pre-audit by a State Audit agency has the advantage of being able to prevent damage before it occurs ”. Pre-audit is the examination of the feasibility, economy, savings and effectiveness of budget estimates, public works, and other financial matters.

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