Lessons on the Role of Performance Auditing from Other Countries' Experiences

is the basis for the National Assembly and the Government to make priority decisions on future investments...

To contribute to enhancing the role of performance auditing in Sweden, it is necessary to do a good job in selecting audit issues and developing evaluation criteria, specifically as follows:

Selecting audit issues is as follows: First: Related issues include: One is, Material (the amount of money involved or the importance of the issue to the people); Second, Risk (issues that departments, branches or programs are not effectively managed). Risks may arise when new laws, new techniques are issued or when the working environment (location, staff, new jobs...) changes; Third, Types of issues (organizational structure, long-term or short-term nature); Second : Ability to perform an audit includes: One is, Available resources (budget, means and audit time); Second, Applied methods related to the audit (methods in the plan, support from external consultants); Third, Relevant auditing skills; Evaluations in the process; Third: Potential changes include: One, Possible solutions (except increasing allocated resources); Two, Concerns about change from audit subjects or the Government...

The development of evaluation criteria is carried out according to the following principles: The evaluation criteria for an operational audit are the standards for evaluating the performance of the audited unit, including: First, Adaptability: The information stated in the report must be appropriate to the analyzed issue; Second, Reliability and legal value: The information communicated to users must ensure reliability and accuracy; Third, Objectivity: The information provided in the report must ensure objectivity; Fourth, Practicality: The type of information mentioned in the audit report on any topic must be appropriate to its importance and sensitivity.

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and useful to users; Five, Comparability: The information provided in the audit report must be the basis for motivating audited entities to further strengthen their management work compared to before the audit; Six, Accessibility: The audit report must clearly explain how and where more specific information can be collected; Seven, Understandability: A person receiving the information but lacking knowledge about the activities of the Government and the audited entity must be able to understand the audit report.

1.3.1.4. The role of performance auditing in China

The State Audit Office of China has the power to audit economic responsibility and has the power to make decisions on handling violations of audited entities. The Central State Audit Office of China (CNAO) is established by the Government and is responsible to the Premier. The role of performance audits conducted by the State Audit Office of the People's Republic of China is reflected in the following basic contents: (1) auditing and supervising the truthfulness, legality and efficiency of financial revenue and expenditure of departments under the State Council and of local governments at all levels, (2) auditing departments under the central government (State Council) and local governments; (3) Auditing the revenue and expenditure of monetary and banking agencies, the financial sector, the tax system, customs, the state treasury system, etc. The audit of the above-mentioned agencies and units by the State Audit of China has contributed to helping units save costs, improve spending efficiency, etc. and is one of the important tools of the Communist Party and the State Council of China in the fight against corruption. The role of the State Audit of China in general, and operational audit in particular, in China is demonstrated through the following tasks: first, it has the right to request the person in charge of the audited unit to make a written promise about the authenticity and completeness of the accounting documents provided by his unit; second, it has the right to check the numbers.

electronic data and computer information systems related to the financial revenues and expenditures, financial revenues and expenditures of the audited unit; third, to have the right to question the amount of public money that the audited unit deposits in the bank in the name of an individual; fourth, to have the right to request assistance from sectors such as the police, finance, tax, etc.; fifth, in case the audited unit refuses to execute the audit decision and fails to hand over the relevant amounts, the State Audit Office of China has the right to notify the finance sector or other relevant sectors to deduct for payment or request the People's Court to enforce the execution...

To contribute to enhancing the role of performance auditing in China, it is necessary to do a good job in selecting audit issues and developing evaluation criteria, specifically as follows:

The selection of audit issues is carried out as follows: First, the selected audit subject must be of great importance and must be of concern to the Communist Party of China, the National People's Congress and the Chinese people; The subject must have an impact on the socio-economic development, environmental protection of the locality and a large scale of investment; Second, the selected audit subject must be closely linked to the general situation of socio-economic development. In addition, the social environment must also be considered (effectiveness); Third, the feasibility of the audit means that the auditor and the audit agency have sufficient capacity to conduct an operational audit of the selected audit subject?; Fourth, the economic feasibility of the audit with the selected audit subject. Does the implementation of the audit of the selected subject need to be improved and bring socio-economic benefits?

The development of evaluation criteria is carried out according to the following principle: When planning to audit a project, a program, a unit, an organization..., the State Audit will organize a workshop with the participation of representatives of state management agencies in relevant fields, experts in the field.

areas of the project, program, unit, organization selected for audit. The evaluation criteria are unanimously selected from the Central State Audit Office, the audited unit, relevant state management agencies, experts... The selected criteria include qualitative indicators to evaluate the socio-economic objectives of the program, project...; quantitative criteria are built from sources such as feasibility study reports, industry indicators, indicators of the previous period, previous year, forecast indicators, indicators proposed by experts... The selected criteria must ensure the following conditions: being objective, highly reliable, easy to understand, complete and comparable.

1.3.2. Lessons on the role of performance auditing drawn from the experiences of other countries

Research on performance audits in a number of countries shows that performance audits basically have many similarities, focusing on assessing the economy, efficiency and effectiveness of the use of financial resources of agencies, units and organizations, but there are still significant differences in many issues related to the legal basis, selection of audit issues and development of evaluation criteria. However, the most general issues that can be drawn about performance audits through research on models and experiences of a number of countries can be summarized as follows:

First, on legal basis

In most countries, the legal status of the State Audit Agency is stipulated in the Constitution or in the Laws. It can be said that this is a relatively important condition for the State Audit Agency to perform its duties. At the same time, this is also a condition for synchronous implementation of audit types, especially implementation of operational audits in most important areas that ministries, branches and localities are managing in order to assess the economy, efficiency and effectiveness. Therefore, to audit operations in

Vietnam is conducting this audit more regularly, requiring in the coming time to add to the Constitution a number of provisions on the legal status, types of audits, tasks of the State Audit Agency, the authority to appoint and dismiss the State Auditor General as stipulated in the Constitutions of some countries, and especially the development of procedures, professional and technical instructions... on auditing the activities of the State Audit Agency.

Second, On the selection of issues in performance audit

Experience from other countries shows that the selection of audit issues is based on the following principles: First, important issues that the National Assembly, the Government and the people are interested in; Audit issues need to be closely linked to the general situation of socio-economic development; Second, outstanding issues and areas with many pressing opinions from the public; Third, issues are selected according to their feasibility, from small to large, from shallow to deep and from simple to complex. Performance audits should be conducted regularly.

Third, On building evaluation criteria in performance audit

Performance audit criteria are reasonably achievable standards of performance against which the economy, efficiency and effectiveness of operations can be assessed: They reflect a normative (ideal) model for the subject of the performance audit; They represent good or best practice. When the criteria are compared with the current situation, audit findings are generated: If the criteria are met or exceeded, it is "best practice", while if the criteria are not met, improvements may be needed. Appropriate criteria ensure the following properties:

One is reliability: Reliable criteria will help to draw consistent conclusions even when used by other auditors under similar conditions;

Second, objectivity: Objective criteria will make the assessments not affected by the prejudices of the auditor or the leader;

Third, usefulness: Usefulness criteria will lead to findings and conclusions that satisfy the information needs of users;

Fourth, understandability: Understandability criteria are clearly expressed and do not allow for large differences in interpretation;

Fifth, comparability: Comparability criteria must be consistent with those used in performance audits of other similar entities or activities and in previous performance audits of the same entity being audited;

Sixth, completeness: Requires covering all important criteria, suitable for evaluating an economic behavior.

Seventh, acceptability: Acceptability criteria are criteria that are generally recognized and used by experts in the field, audited entities, the legislature, the media and the public. When conducting a performance audit, criteria can be important and useful in many ways, specifically: First, they form a common basis for communication within the audit team and with the leadership of the State Audit Office about the nature of the audit; Second, they form a basis for communication with the leadership of the audited entity; Third, they form a basis for collecting data and thereby for developing methods for collecting audit evidence; Fourth, they form the basis for audit findings and assist in framing and structuring the audit findings.

The extent to which criteria are effective in the above applications depends on their form and level of expression as well as the auditor's ability to apply them. Auditing criteria must be used objectively. This requires auditors to have reasonable considerations and sober judgment, to have a basic understanding of the field to be audited and to grasp the legal regulations, other relevant documents as well as recent surveys and audits in that field...

In summary: A relatively complete and comprehensive study of performance auditing includes concepts, history of formation and development, characteristics, objectives, and

Objectives, roles and factors affecting the role of performance audit in Vietnam by state audit, to the role of performance audit in some countries in the world, in the current period in our country has extremely important significance both in theory and practice. Through the above research, it has shown the great role of performance audit in budgetary financial management at both levels (macro and micro). Specifically:

The role of macro-level performance audit is demonstrated as follows: (1) as one of the factors contributing to ensuring and maintaining the economy and efficiency in economic activities; (2) contributing to improving economic and financial relations in the economy; (3) proposing solutions to contribute to implementing financial policy mechanisms, formulating and assigning state budget plans, inspecting the implementation of state budget plans; (4) contributing to preventing violations in financial management, providing information to the public on socio-economic activities, exercising the right to supervise and attract investment capital for the whole society...

The role of micro-level performance audit is demonstrated in: (1) pointing out the existing problems and their causes; (2) improving economic efficiency; (3) improving efficiency; (4) enhancing effectiveness; (5) improving output quality through reducing the time to provide products and services; (6) improving the internal control system; (7) enhancing the accountability of the audited unit; (8) improving the quality of information...

Chapter 2

CURRENT STATE OF THE ROLE OF PERFORMANCE AUDIT IN VIETNAM CONDUCTED BY THE STATE AUDIT

2.1. Overview of state audit and performance audit

2.1.1. The formation and development process of the State Audit Agency

The State Audit was established under Decree No. 70/CP dated July 11, 1994 of the Government, organized and operated under Decision No. 61/TTg dated January 24, 1995 of the Prime Minister and was supplemented and completed in a step of functions, tasks, powers and organizational structure in Decree No. 93/2003/ND-CP dated August 13, 2003 of the Government. After 15 years of operation, the State Audit has affirmed its position and role in the structure of the state apparatus; affirmed the necessity and objective necessity of the tool for inspection and control of state economic and financial management activities in the socialist-oriented market economy and is an important tool in the fight against corruption and waste in Vietnam. The State Audit Law, which took effect on January 1, 2006, opened a new development stage for the State Audit as a specialized agency in the field of state financial inspection established by the National Assembly, operating independently and only subject to the law.

Over the past 15 years, the organization, apparatus, and auditors of the State Audit Agency have developed remarkably, continuously consolidated and improved. When it was first established, there were only 4 specialized state audits and an Office with a few dozen staff from ministries, branches, and localities. Up to now, the State Audit has a unified centralized apparatus consisting of 25 subordinate Department-level units, including 6 advisory and support units, 7 specialized state audits at the central level, 9 regional state audits located in localities, and 3 public service units. Details of the State Audit's organizational structure are shown in the following Diagram 2.1.

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