Solutions to Improve the Quality of Banking Auditing Activities of the State Audit of Vietnam

Third, In the recent past, the State Audit has issued regulations to guide and orient auditing activities such as the State Audit Standards System; auditing procedures; System of records and audit forms... However, the implementation and application of the above regulations in operations are still limited because detailed guiding regulations have not been fully issued (guidance on the State Audit Standards System; regulations on guidelines for selecting audit samples; regulations on collecting audit evidence; regulations on determining materiality and audit risks in auditing...);

CONCLUSION OF CHAPTER 2

After more than two decades of construction and development of the State Audit, the State Audit's auditing activities are playing an increasingly important role in the construction and development of the country. And to better fulfill the role and responsibility of the highest financial inspection agency of the state, improving the quality of auditing is extremely important. Issues on the organization and operation of the State Audit are formed and gradually improved in accordance with the economic and political conditions of the country in each certain period. Auditing activities always inherit and develop according to the requirements of the State's control of finance and budget in each stage of the country's development. On that basis, the organization and operation of the State Audit increasingly meet the requirements of innovation, strengthening the State's inspection and control in the management and use of the state budget, money and assets.

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However, from the perspective of theoretical research on auditing activities and the quality of auditing activities of the State Audit Office at present, it shows that there are still many points that do not meet the requirements on auditing quality and therefore solutions are needed to improve the quality of auditing activities of the State Audit Office in general and at commercial banks in particular.

Through analyzing and evaluating the achieved results, the limitations and shortcomings of the law on operations, and the quality of auditing, the thesis has explained the causes of limitations and shortcomings in the quality of auditing activities at commercial banks today. This is a practical basis for proposing highly feasible solutions to improve the quality of auditing activities at commercial banks of the State Audit Office to meet the requirements of construction and development of the country in the current period.

CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF BANKING AUDIT ACTIVITIES OF THE STATE AUDIT OF VIETNAM

3.1. ORIENTATION OF BANKING AUDIT OF THE STATE AUDIT OF VIETNAM

3.1.1. General orientation for the period 2020-2025 with a vision to 2030

Improving the quality of audit activities is a regular, continuous and continuous activity in the operation of the State Audit. By improving the quality of audit activities, it contributes to enhancing the value and position of the State Audit in the cause of economic and social development of the country. This is an urgent requirement of the innovation and international integration of the State Audit.

Innovation and improvement of the quality of auditing activities is also the task ofState Audit, according to the State Audit development strategy with a vision to 2030, is to ensureThe State Audit Office develops comprehensively and substantially, meeting the requirements and tasks assigned.entrusted by the people. Is an audit agency with responsibility, capacity and prestige towardsinspection and supervision of the management and use of state finance and state assets.

The general viewpoint and development goal of the State Audit until 2030 is "Developing the State Audit into an important and effective tool of the Party and State in inspecting and controlling the management and use of state finance and state assets; supporting and effectively serving the activities of the National Assembly, the Government, the People's Councils, and local People's Committees in performing the legislative, supervisory, management and executive functions and deciding on important issues of the country; improving the capacity, effectiveness and efficiency in auditing activities, ensuring public, transparent, professional, regular and gradually modern activities, worthy of being a responsible and prestigious financial and public asset inspection agency, meeting the requirements and demands of the Party, the State and the people". Specifically:

Ensure full and comprehensive institutionalization of the Party's viewpoints, policies and guidelines on state economic development; comply with legal regulations and be consistent with the country's socio-economic development orientation;

The development of the State Audit Office must meet the requirements of international economic integration, in accordance with international principles and practices and the practical conditions of Vietnam; be a responsible member in promoting the development of the public audit sector in the region and the world;

Ensuring high independence in State Audit activities; commensurate with the position and role of the State Audit as the highest financial and public asset inspection agency of the State established by the National Assembly, operating independently and only subject to the law;

The development of the State Audit must be associated with the 4.0 technological revolution, in which the application of information technology in all activities of the State Audit must be considered a regular and continuous task, both in the short and long term.

3.1.2. Orientation to improve the quality of auditing at banks by the State Audit of Vietnam

Improving the quality of auditing activities at banks is one of the tasks of the State Audit in improving the quality of auditing in general. Therefore, it is impossible to separate the improvement of the quality of auditing at banks from the general. Improving the quality of auditing needs to closely follow the orientation and guiding viewpoints of the Party and the State in auditing activities in general. Effectively serving the tasks in the Strategy for Development of the State Audit to 2020 and Vision 2030.

Therefore, the orientation will focus on a number of core and key issues to ensure the good and effective improvement of the quality of audit activities, specifically focusing on improving the quality of comprehensive audits in terms of capacity, effectiveness and efficiency, including: Prioritizing the enhancement and further promotion of the independence of the State Audit, ensuring public, transparent, professional, regular and gradually modern operations; expanding the scope, scale and promoting the depth of operational audits and information technology audits, focusing on issues of special interest to public opinion, topical issues to provide findings and recommendations that warn and prevent possible risks in the future for relevant parties; paying attention to developing pre-audit processes and procedures, especially in submitting the opinions of the State Audit for the National Assembly to consider, decide on the State budget estimate, decide on the allocation of the central budget...

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Participate with agencies of the National Assembly and the Government in reviewing the State budget estimates, central budget allocation plans, and plans to adjust the State budget estimates in order to provide warning opinions and independent advice right from the budget preparation stage to help the National Assembly and the Government assess scenarios or forecasts that may occur in the medium and long term related to economic development cycles, debt repayment, national target programs and other commitments such as social security, pensions, disaster prevention, climate change or financial shocks; maintain and develop relationships between stakeholders (audited entities, the National Assembly, the Government, people, supreme audit agencies, international organizations, media units, etc.) in the activities of the State Audit Office in order to improve the efficiency, effectiveness of conclusions and recommendations and the implementation rate of annual audit conclusions and recommendations.

3.2. SOLUTIONS TO IMPROVE THE QUALITY OF BANKING AUDIT ACTIVITIES OF THE STATE AUDIT OF VIETNAM

Based on the current state of auditing of the State Bank and state-owned commercial banksdistributed more than 50%, along with the general orientation for the period 2020-2025 vision 2030 ofBank audit of the State Audit of Vietnam, research to propose solutionsMeasures to improve the quality of bank audit activities of state auditVietnam as follows:

3.2.1. Macro solutions

 Perfecting the legal system

Research and amend the State Audit Law and legal documents: To clearly define the position and functions of the State Audit with other State inspection, supervision and control agencies; at the same time, ensure consistency and conformity between the State Audit Law and the Law on Organization of the National Assembly, the Law on Organization of the Government, the Law on State Budget..., specifically:

Proposed amendments to the State Audit Law 2015, specifically the following contents:

It is necessary to supplement regulations on sanctions for violations of the State Audit Law by audited units and related organizations and individuals in auditing activities: From the reality of law enforcement in recent years, there have been violations of obligations, responsibilities, and prohibitions of audited units and related organizations and individuals such as: Not providing or not providing complete and timely information and documents; obstructing the audit, concealing violations of financial laws,

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not implementing audit recommendations... The basic reason leading to this situation is the lack of regulations on sanctions to handle violations as mentioned by audited units and individuals involved in auditing activities. From the experience of State Audit activities in some countries in the world, it can be seen that: The State Audit Law of the Russian Federation; The State Audit Law of China; The Audit Law of the Federal Republic of Germany... all give the State Audit the right to impose administrative sanctions in the field of State Audit as a basic right. Therefore, in order to improve the effectiveness and efficiency of the State Audit, it is necessary to soon supplement regulations on sanctions for violations of the State Audit Law by audited units and organizations and individuals involved in auditing activities.

Study to amend a number of provisions of the State Budget Law No. 83/2015/QH13 in Article 23, adding item 3: "Participate with the Finance and Budget Committee and other agencies of the National Assembly and the Government in reviewing and examining reports on state budget estimates, plans for central budget allocation, and plans for adjusting state budget estimates" to "Participate with the Finance and Budget Committee and other agencies of the National Assembly and the Government in reviewing and examining reports on state budget estimates, plans for adjusting state budget estimates, and plans for allocating central budget of the State Audit, deadline for submitting annual budget settlement reports of ministries, provinces, and centrally-run cities" to comply with the provisions of the State Audit Law.

Propose to the Prime Minister to amend and supplement the Civil Code No. 91/2015/QH13 of the Civil Code dated November 24, 2015 in Article 282: Periodic performance of obligations: "Obligations are performed periodically according to agreement, according to the provisions of law or decisions of competent authorities; Delay in performing obligations in each period is also considered as delay in performing obligations" to be consistent with documents on debt collection, specifically requesting specific instructions for cases where borrowers leave the locality for more than 2 years, whose address cannot be determined due to arising during the process of auditing, summarizing, and evaluating the results of risk handling of the People's Credit Fund according to Decision 50/2010/QD-TTg due to arising from existing limitations in the process of auditing in 2014, 2015 and 2017.

Research to revise Circular No. 21/2012/TT-NHNN dated June 18, 2012 on "Regulations on lending, borrowing; term purchase and sale of valuable papers between banks"

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"Credit institutions, foreign bank branches" was issued by the Governor of the State Bank of Vietnam in Circular No. 18/2016/TT-NHNN to amend and supplement a number of articles of Circular No. 21/2012/TT-NHNN dated June 18, 2012. However, it is not consistent with the charter on organization and operation of the Vietnam Bank for Social Policies in the Prime Minister's Decision No. 16/2003/QD-TTG dated January 22, 2003.

Specifically, in Circular No. 18/2016/TT-NHNN, Article 2 "Applicable subjects" proposes to add the lending and borrowing subjects as the People's Credit Fund to be consistent with Decision No. 16/2003/QD-TTG in Chapter 2, Section 1, Article 4 "Capital sources", sub-section 2 "Mobilized capital" including: a) Interest-bearing deposits of domestic and foreign organizations and individuals;

b) Deposits of State credit institutions equal to 2% of the balance of mobilized capital in Vietnamese Dong with interest paid according to agreement; c) Voluntary interest-free deposits of domestic and foreign organizations and individuals; d) Issuance of government-guaranteed bonds, deposit certificates and other valuable papers; e) Savings of the poor.

 Complete documents guiding the implementation of the State Audit Law:

To enhance the effectiveness of the State Audit Law, it is necessary to continue to develop and perfect legal documents specifying and guiding its implementation. This is an urgent task that must be carried out regularly and continuously. It is necessary to focus on developing and promulgating the following main legal documents:

Resolution of the National Assembly Standing Committee regulating the working positions and the structure of civil servant titles of the State Audit Office: Clearly regulates the working positions and the structure of civil servant titles of the State Audit Office in accordance with the Law on Cadres and Civil Servants; creates a legal basis for building a team of cadres and civil servants of the State Audit Office to ensure sufficient quantity, structure and quality to meet the requirements of assigned tasks.

Resolution of the National Assembly Standing Committee regulating the standards for the State Auditor General: Creating a legal basis for training, fostering and selecting qualified officials and civil servants to be elected to the position of State Auditor General.

Decree of the Government on the organization and operation of Internal Audit at agencies, organizations and units that manage and use state budget, money and assets: Identifying agencies, organizations and units that must establish Internal Audit; organizational model,

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Functions, tasks, activities and ensuring the operation of Internal Audit; responsibilities of the State Audit Office for Internal Audit...

Decision of the State Auditor General regulating the request for professional appraisal in the auditing activities of the State Audit: Regulations on the order, procedures, forms and contents of performing professional appraisal in auditing; use of appraisal results in auditing and responsibilities of parties in the appraisal process.

The Decision of the State Auditor General stipulates the settlement of recommendations of audited units: Stipulates cases in which the right to make recommendations can be exercised and the time limit for making recommendations of audited units; the order and procedures for settling recommendations; the responsibilities of the State Audit, the audited units and related parties;.

Decision of the State Auditor General regulating the use of audit collaborators: Regulations on subjects, standards, conditions, legal forms of using audit collaborators; rights, obligations and responsibilities of collaborators; forms, scope and methods of operation of audit collaborators.

 Perfecting the system of standards and auditing processes:

Auditing is a profession that requires strict professional and technical prudence. Auditing is a highly professional activity that must always comply with a unified system of professional standards and procedures. The system of auditing standards is not only the basis for professional activities but also the basis for inspecting and evaluating the activities of auditors. Therefore, the State Audit Office needs to:

Promptly complete the system of standards and auditing procedures to increasingly improve the quality of auditing activities. The State Audit has a complete system of standards and procedures for financial auditing, compliance auditing, and operational auditing; gradually specify the auditing procedures according to narrow specialties in accordance with the types of auditing as prescribed by the State Audit Law.

Completing the process of checking and reviewing the quality of audits. This is an important issue, ensuring that audit reports when issued are of high quality, the conclusions are convincing, the audit recommendations are in accordance with the law and are highly feasible. At the same time, thereby assessing the quality of audit work of the Audit Teams. Contents of the process of checking and reviewing the quality of audits

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