Luật Kiểm toán nhà nước 2015 số 81/2015/QH13

THE NATIONAL ASSEMBLY -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ----------------
No. 81/2015/QH13	Hanoi, June 24, 2015

 

LAW

STATE AUDIT OFFICE OF VIETNAM

Pursuant to the Constitution of Socialist Republic of Vietnam;

The National Assembly promulgates the Law on State Audit Office of Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Law deals with functions, tasks, and entitlements, organizational structure, and operation of State Audit Office of Vietnam (hereinafter referred to as SAV); duties and entitlements of occupational standards; duties and entitlements of state auditors, entitlements and responsibilities of organizations and individuals related to state audit activities.

Article 2. Regulated entities

1. SAV.

2. Agencies and organizations assigned to manage and/or use public finance and/or public property.

3. Other organizations and individuals related to state audit activities.

Article 3. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Audit report of SAV means the document made and published by SAV after each audit for assessing, confirming, concluding the audit contents, and giving auditors’ opinions. Audit reports of SAV are made by State Auditor General or the persons authorized by State Auditor General to append signatures and seals on the reports.

2. Audit evidence means the documents and information collected by state auditors that are related to the audit and are the basis for making assessment, confirmation, and giving auditor’s opinions.

3. Audited unit means an agency or organization assigned to manage and/or use public finance and/or public property.

4. Audit dossier includes documents collected, classified, used, made, retained, and managed by SAV as prescribed.

5. Audit activities of SAV involve assessment and determination of properness and truthfulness of information about public finance and/or public property or financial statements related to the management and use of public finance and/or public property; adherence to law and efficiency of management, use of public finance and/or public property.

6. Specialized state audit unit means a unit affiliated to SAV which audit central agencies and perform other tasks given by State Auditor General.

7. Local state audit unit means a unit affiliated to SAV which audit local agencies and perform other tasks given by State Auditor General.

8. State auditors are officials assigned to various positions of state auditors to carry out audit.

9. Positions of state auditors are the positions that reflect the capability and qualifications of state auditor, including: auditors, main auditors, and senior auditors.

10. Public finance includes: state budget; national reserve; non-state budget financial fund; finance of regulatory agency, the people’s armed forces, public service agencies, providers of public services and goods, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations using state funding and state budget; state capital in other enterprises; public debts.

11. Public property includes: land; water resources, mineral resources; resources in territorial waters and airspace; other natural resources; state-owned property at regulatory agencies, the army, public service agencies, political organizations, socio-political organizations, socio-political-professional organizations,  social organizations, socio-professional organizations; public property allocated to enterprises; state property for reserve; property classified as infrastructure serving public interests, and other types of property under the ownership of the whole people and represented, managed by the State.

Article 4. Subjects of state audit

The subjects of state audit include management, use of public finance and/or public property, and other activities related to management, use of public finance and/or public property of audited units.

Article 5. Rules for audit activities of SAV

1. Independence and observance of law.

2. Truthfulness, objectiveness, openness, and transparency.

Article 6. State audit standards

1. State audit standards are regulations and instructions about requirements, principles, procedures for audit and settlement of relationships that occur during audit activities that must be complied with by state auditors during audit activities; they are the basis for inspection, assessment of audit quality and professional ethics of state auditors.

2. State Auditor General shall establish and promulgate the system of state audit standards in accordance with the Law on Promulgation of legislative documents.

Article 7. Legal validity of audit reports

1. Audit reports made by SAV are binding upon audited units after they are published in terms of management and use of public finance and/or public property.

2. Audit reports of SAV are the basis for:

a) The National Assembly to use during the process of considering, deciding, and supervising: the implementation of long-term and annual socio-economic development policies and objectives; policies on investment in National target programs and projects of national importance; basic policies on national finance; imposition, adjustment, or cancellation of taxes; decision on dividing revenues and obligatory expenditures between central government budget and local government budgets; limits on safety limits of national debt, public debts, government debts; making of state budget estimate and allocation of central government budget; approval for state budget statements;

b) The Government, regulatory agencies, other agencies and organizations of the State to use during their managerial tasks and performance of their duties and entitlements;

c) The People’s Councils to use during the process of considering, deciding estimates and allocation of local government budgets; approving local government budget statements; supervising the management and use of public finance and/or public property; performance of their duties and entitlements;

d) Audited units to exercise their right to lodge complaints.

Article 8. Prohibited acts

1. The following acts of SAV, state auditors, and collaborators:

a) Harassing, causing difficulties to audited units;

b) Illegally intervening normal operation of audited units;

c) Giving bribes, taking bribes, and/or brokering bribery;

d) Making false or insufficient audit reports;

dd) Misuse of power and/or position for self-seeking purposes;

e) Revealing state secrets or trade secrets of audited units;

g) Revealing information about the audit progress and result that are not officially published.

2. The following acts of audited units and relevant entities are prohibited:

a) Refusing to provide information, documents serving the audit at the request of SAV and state auditors;

b) Obstructing the work of SAV and state auditors;

c) Making false, untruthful, insufficient, unpunctual reports, or failure to provide objective information about the audit carried out by SAV;

b) Giving bribes to state auditors and collaborators;

dd) Shielding violations against regulations of law on public finance and/or public property.

3. Every organization and individual is prohibited to illegally intervene the audit and audit result of SAV, state auditors, and collaborators.

Chapter II

FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF SAV

Section 1. FUNCTIONS, TASKS, POWERS OF SAV

Article 9. Functions of SAV

SAV has the functions to make assessment, confirmation, give auditor’s opinions with regard to the management and use of public finance and/or public property.

Article 10. Duties of SAV

1. Decide annual audit plans and submit reports to the National Assembly before implementation.

2. Organize the implementation of annual audit plans and performance of audit tasks at the request of the National Assembly, Standing Committee of the National Assembly, the President, the Government, and the Prime Minister.

3. Consider deciding audits at the request of Ethnic Council, Committees of the National Assembly, Deputies of the National Assembly, Standing Committee of the People’s Council, the People’s Committees of central-affiliated cities and provinces (hereinafter referred to as provinces) and other organizations not in the annual audit plans of SAV.

4. Propose opinions of SAV to the National Assembly for consideration and decision of state budget estimates, allocation of central government budget, contents of investment in National target programs, projects of national importance, and approval for state budget statements.

5. Join agencies of the National Assembly and the Government in examining state budget estimates, plans for allocation of state budget, plans for adjustment of state budget estimates, plans for provision of funding for National target programs and projects of national importance decided by the National Assembly and state budget statements.

6. Join other agencies of the National Assembly in supervising implementation of laws and resolutions of the National Assembly, ordinances and resolutions of Standing Committee of the National Assembly on budget – finance; supervising enactment of state budget and financial policies on request.

7. Join other agencies of the National Assembly, the Government, and competent authorities in submitting law/ordinance projects on request in the process of formulating and inspecting law/ordinance projects.

8. Submit annual consolidated audit reports, implementation of auditors’ opinions to the National Assembly, Standing Committee of the National Assembly; send those reports to the President, the Government, the Prime Minister, Ethnic Council, Committees of the National Assembly; provide audit results for the Ministry of Finance, deputies of the National Assembly, the People’s Councils, the People’s Committees where audits are carried out, and other agencies as prescribed by law.

9. Provide explanation of audit results for the National Assembly and other agencies of the National Assembly as prescribed by law.

10. Publish audit reports, annual consolidated audit reports, implementation of auditors’ opinions according to Article 50, Article 51 of this Law, and relevant regulations of law.

11. Monitor, inspect the implementation of opinions of SAV.

12. Transfer documents to investigation agencies, the People’s Procuracies, and other regulatory agencies responsible for handling suspected criminal cases and violations committed by organizations and individuals that are discovered through auditing.

13. Manage audit dossiers; protect confidentiality of accounting figures, documents, information about operation of audited units as prescribed by law.

14. Seek international cooperation in terms of state audit.

15. Organize, manage works related to scientific research, training, development of human resources of SAV.

16. Organize examinations, issue, revoke, and manage state audit practitioner certificates.

17. Disseminate regulations of law on state audit.

18. Develop and Strategy for development of SAV and submit it to Standing Committee of the National Assembly for promulgation.

19. Perform other tasks as prescribed by law.

Article 11. Entitlements of SAV

1. Submit law/ordinance projects and draft resolutions to the National Assembly, Standing Committee of the National Assembly as prescribed by law.

2. Request audited units and relevant entities to promptly provide sufficient, accurate information and documents serving the audit.

3. Request audited units to implement opinions of SAV with regard to the violations of their financial statements and failure to adhere to law; suggest measures for them to overcome their shortcomings discovered by SAV.

4. Request competent agencies or persons to request audited units to implement opinions of SAV with regard to the violations of their financial statements and failure to adhere to law; suggest actions against failure to implement or to adequately and promptly implement auditors’ opinions.

5. Request competent agencies or persons to deal with violations discovered during the audit.

6. Request competent agencies or persons to deal with entities that obstruct the operation of SAV or provide false information/documents for SAV and state auditors.

7. Request professional assessment where necessary.

8. Authorize or hire audit firms to carry out audits at organizations managing/using public finance and/or public property; SAV is responsible for the truthfulness of information, documents, and opinions provided by such audit firms.

9. Request the National Assembly, Standing Committee of the National Assembly, the Government, the Prime Minister, and other agencies of the State to amend policies and law.

Section 2. ORGANIZATIONAL STRUCTURE OF SAV

Article 12. State Auditor General

1. State Auditor General is the head of SAV who is responsible to the National Assembly and Standing Committee of the National Assembly for the organization and operation of SAV.

2. State Auditor General is elected and dismissed by the National Assembly at the request of Standing Committee of the National Assembly.

3. The term of office of State Auditor General is 05 years and coincides with the term of the National Assembly. State Auditor General may be reelected for not more than two consecutive terms.

Article 13. Duties of State Auditor General

1. Lead and direct SAV to perform the duties and entitlements prescribed in Article 10 and Article 11 of this Law.

2. Present annual consolidated audit reports and work reports to the National Assembly; submit reports to Standing Committee of the National Assembly during the intervals between meetings of the National Assembly; respond to enquiries of the National Assembly deputies or Standing Committee of the National Assembly.

3. Take legal responsibility for audit reports of SAV.

4. Decide and organize the implementation of specific measures for enhancing the discipline of operation of SAV; preventing, fighting corruption, wastefulness, bureaucracy, authoritarianism of officials and civil servants of SAV.

5. Define defining the functions, tasks, entitlements and organizational structure of units affiliated to SAV.

6. Submit the decision on personnel and establishment, merger, dissolution of units affiliated to SAV to Standing Committee of the National Assembly.

7. Decide measures for ensuring independence and quality of audit activities of SAV.

8. Settle complaints and denunciations related to audit activities of SAV.

9. Perform other tasks as prescribed by law.

Article 14. Entitlements of State Auditor General

1. Issue audit decisions.

2. Be invite to general meetings of the National Assembly, meetings of Standing Committee of the National Assembly, and meetings of the Government about relevant issues.

3. Promulgate legislative documents in accordance with the Law on Promulgation of legislative documents.

4. Request Ministers, Heads of ministerial agencies, Heads of Governmental agencies, other central regulatory agencies, Presidents of the People’s Committees of provinces, heads of superior agencies of audited units to deal with the entities that obstruct audit activities of SAV; provide false information/documents for SAV; fail to implement or to adequately, promptly implement opinions of SAV. In case opinions of SAV are not implemented or adequately implemented, State Auditor General shall request a competent person to consider as prescribed by law.

5. Decide the audits at the request of the organizations prescribed in Clause 3 Article 10 of this Law.

6. Decide to seal documents, inspect accounts of audited units or relevant units.

7. Request Standing Committee of the National Assembly to designate or dismiss Deputy State Auditor General.

Article 15. Deputy State Auditor General

1. Deputy State Auditor General shall assist State Auditor General in performing his/her tasks as assigned by State Auditor General and take responsibility to State Auditor General for the assigned tasks. When State Auditor General is not present, a Deputy State Auditor General who is authorized by State Auditor General shall lead and direct the operation of SAV on behalf of State Auditor General.

2. State Auditor General shall request Standing Committee of the National Assembly to designate or dismiss Deputy State Auditor General.

3. The term of office of Deputy State Auditor General is 05 years.

Article 16. Organizational structure of SAV

1. SAV consists of SAV Office, affiliated units, specialized state audit units, local state audit units, and public service agencies.

SAV Office, local state audit units, and public service agencies shall have their own separate seals.

2. Standing Committee of the National Assembly shall decide the quantity of units affiliated to SAV at the request of State Auditor General.

Article 17. Chief auditors and deputy chief auditors

1. A chief auditor is the head of a specialized state audit unit or local state audit unit.

2. Deputy chief auditors shall assist the chief auditor in performing his/her tasks as assigned by the chief auditor and take responsibility to the chief auditor for the assigned tasks.

3. The chief auditor and deputy chief auditors must be hold the position of main auditor or higher.

4. State Auditor General shall designate and dismiss chief auditors and deputy chief auditors.

5. Duties, entitlements, and responsibilities of chief auditors and deputy chief auditors shall be prescribed by State Auditor General.

Section 3. STATE AUDITOR COUNCIL

Article 18. Establishment and dissolution of State Auditor Council

1. State Auditor Council shall be established whenever necessary to provide consultancy for State Auditor General on verification of important audit reports; assist State Auditor General in re-verifying audit reports at the request of audited units, settling complaints about audit reports.

2. State Auditor General shall decide establishment of State Auditor Council, decide the members and working regulations of audit activities of SAV. The president of State Auditor Council is a Deputy State Auditor General. State Auditor General may invite external experts to join the Council on a case-by-case basis.

3. State Auditor Council shall be automatically dissolved after its missions are accomplished.

Article 19. Working principles of State Auditor Council

1. Working as a group.

2. Making decisions under the majority rule; dissenting opinions are preserved and reported to State Auditor General.

3. Records and other documents of State Auditor Council shall be retained with other audit dossiers of SAV.

Chapter III

STATE AUDITORS AND COLLABORATORS;

Article 20. Positions of state auditors

1. State auditors are divided into the following positions:

a) Auditors;

b) Main auditors;

c) Senior auditors.

2. State Auditor General shall decide designation and dismissal of various positions of state auditors.

Article 21. Common standards of state auditors

Apart from satisfying the standards applied to officials according to regulations of law on officials, every state auditor must:

1. Have good ethics and responsibility; be integrated, honest, and objective;

2. Have a bachelor’s degree in audit, accounting, finance, banking, economics, law, or another discipline that is directly related to audit, or a higher degree;

3. Have worked for at least 05 consecutive years in the trained field or in accounting in SAV for at least 03 years, not including the internship period;

4. Have a state audit practitioner certificate.

Article 22. Duties of state auditors

1. Perform audit tasks and take responsibility for performance of given audit tasks; make assessment, confirmation, and opinions about audited contents.

2. Comply with law, operating principles, audit standards and procedures of SAV and relevant regulations of State Auditor General.

3. Take legal responsibility for evidence, auditors’ assessment, confirmation, and opinions.

4. Collect audit evidence, record and retain documents of state auditors according to regulations of State Auditor General.

5. Protect the confidentiality of information and documents collected during the audit process.

6. Present state auditor’s card while performing auditors’ tasks.

7. Keep studying, improving professional knowledge, skills, and professional ethics; participate in annual refresher courses as prescribed by State Auditor General.

8. Promptly and adequately report the situation mentioned in Article 28 of this Law and other situations that affect the independence of state auditors to the person who issues the decision to establish the audit delegation.

Article 23. Standards for the position of state auditor

1. Satisfy common standards of state auditors prescribed in Article 21 of this Law.

2. Grasp the policies of Communist Party, policies and regulations of law on state audit; have knowledge about governmental administration and socio-economic administration.

3. Grasp the state audit procedures and standards.

4. Pass the examination for the position of state auditor.

Article 24. Standards for the position of main auditor

1. Grasp regulations of law on state audit.

2. Be capable of proposing, developing strategy for development of the audit field, long-term, midterm audit plans, professional audit research; capable for establishing and proposing amendments to state audit standards.

3. Be conversant with international audit practice and standards.

4. Have worked for at least 05 years as an auditor or 08 years at as an equivalent position.

5. Have passed the examination for the position of main auditor.

Article 25. Standards for the position of senior auditor

1. Grasp and be capable of providing instructions on application of audit procedures, standards, and methods to audit activities.

2. Be capable or leading scientific researches into state audit of Ministries and the State.

3. Have worked for at least 05 years as a main auditor or 08 years as an equivalent position.

4. Have passed the examination for the position of senior auditor.

Article 26. State auditor’s card

1. State auditor’s cards are issued by State Auditor General to state auditors to be sued while performing auditor’s tasks.

2. State Auditor General shall provide the template, promulgate regulations on management and use of state auditor’s cards.

Article 27. Dismissal of state auditors

1. A state auditor shall resign in the case of:

a) Retirement, resignation, reassignment

b) Health issues, family issues, or other difficulties likely to render the state auditor unable to fulfill his/her tasks.

2. A state auditor shall be dismissed in the case of:

a) Imposition of an effective sentence by court;

b) Violations against Clause 1 Article 8 of this Law;

c) Violations against professional ethnics of state auditors;

d) Failure to fulfill given tasks corresponding to the person’s position;

dd) There are evidence that the person cheated during the examination or providing false information/documents in the application.

Article 28. Cases in which a person must not participate in an audit delegation

1. The person has purchased, contributed capital, or had a business relationship with the audited unit.

2. The person used to hold a position of manager, executive, member of the Control Board, Chief accountant, or accountant of the audited unit in the audited fiscal years.

3. The person who used to hold a position of manager, executive, member of the Control Board, Chief accountant, or accountant of the audited unit must not participate in the audit delegation for at least 05 years since he/she stops holding the position.

4. The person is a parent, adoptive parent, parent-in-law, spouse, or sibling of the head, Chief accountant, or accountant of the audited unit.

Article 29. Collaborators

1. SAV may employ collaborators who are Vietnamese and foreign experts, scientists, managers under employment contracts. Funding for employing collaborator is included in annual operating budget of SAV.

2. Collaborators have the following rights and obligations:

a) Perform the contractual rights and obligations;

b) Comply with regulations of law on state audit;

c) Take legal responsibility for performance of their tasks to SAV.

3. State Auditor General shall promulgate specific regulations on employment of collaborators.

Chapter IV

AUDIT ACTIVITIES OF SAV

Section 1. AUDIT DECISIONS

Article 30: The basis for issuing audit decisions

State Auditor General shall issue an audit decision based on:

1. Annual audit plans of SAV;

2. Requests of the National Assembly, Standing Committee of the National Assembly, the President, the Government, or the Prime Minister;

3. Request of organizations mentioned in Clause 3 Article 10 of this Law which is approved by state-owned corporations.

Article 31. Audit decisions

1. An audit decision consists of the following tasks:

a) The basis for carrying out the audit;

b) The audited unit;

c) Targets, contents, and scope of the audit;

d) Location and time for audit;

dd) The chief of audit delegation and members thereof.

2. The audit decision must be sent to the audited unit and members of the audit delegation within 03 working days and announced within 15 working days from the day on which it is signed, except for extraordinary audit.

3. During the audit, if the contents, scope, location, time of audit, or members of the audit delegation must be changed, State Auditor General shall make a written decision, send it to the audited unit and members of the audit delegation by the deadline mentioned in Clause 2 of this Article.

Article 32. Audit contents

1. Audit contents include:

a) Financial audit which is meant to assess, confirm the legitimacy and truthfulness of financial information and financial statements of the audited unit;

b) Compliance audit which is meant to assess and confirm compliance with law, rules and regulations binding upon the audited unit;

c) Operational audit which is meant to assess the efficiency and effectiveness of management and use of public finance and/or public property.

2. State Auditor General shall decide the contents of each audit depending on its requirements.

Article 33. Audit of state budget statements

1. State budget statements shall be audited before they are submitted to the National Assembly or the People’s Councils for approval. Audit of State budget statements of local governments after they are approved by the People’s Councils shall be carried out under decisions of State Auditor General.

2. In case an audited statement is yet to be approved by the National Assembly or the People’s Council, SAV must keep clarifying the issues raised by the National Assembly or the People’s Council by the deadline imposed by the National Assembly or the People’s Council.

Section 2. LOCATION AND TIME LIMIT FOR AUDIT

Article 34. Time limit for audit

1. Time limit for an audit begins from the day on which the audit decision is announced until audit tasks at the audited unit are finished.

2. The time limit for an audit is 60 days, except for the case in Clause 3 of this Article. State Auditor General may decide extension of the time limit for audit one time. Nevertheless, the extension must not exceed 30 days.

3. State Auditor General shall specify the time limit in case of audit for assessing the efficiency and effectiveness of management and use of public finance and/or public property of nationwide scale.

Article 35. Location for audit

1. The audit shall be carried out at the audited unit, office of SAV, or another location decided by State Auditor General.

2. If an audit is carried out outside the premises of the audited unit, the business premises must send documents as prescribed by State Auditor General.

Section 3. AUDIT DELEGATION.

Article 36. Establishment and dissolution of audit delegation

1. An audit delegation shall be established to perform audit tasks of SAV. State Auditor General shall decide establishment of the audit delegation at the request of the chief auditor of a specialized state audit unit or local state audit unit. An audit delegation may be divided into smaller auditor teams depending on the scale of the audit.

2. An audit delegation shall be automatically dissolved after all audit tasks are completed and is responsible for the assessment, confirmation, and opinions written in the audit report.

Article 37. Composition of audit delegation

1. The chief of the audit delegation.

2. The deputy chief of the audit delegation.

3. Leaders of auditor teams (hereinafter referred to as team leaders) if the audit delegation is divided into smaller teams.

4. Members.

Article 38. Standards applied to chief, deputy chief, and team leaders of audit delegation

1. The chief, deputy chief of an audit delegation must:

a) Have professional skills, managerial skills, and working experience appropriate for given tasks;

b) Be main auditors holding the position of deputy department manager or higher, or auditors holding the position of department managers or higher.

2. Team leaders must:

a) Have professional skills, managerial skills, and working experience appropriate for given tasks;

b) Be main auditors or auditors holding the position of deputy department manager or higher.

Article 39. Duties, entitlements, and responsibility of chief of the audit delegation

1. The chief of the audit delegation has the following duties:

a) Organize performance of audit tasks under the audit decision;

b) Consider approving audit records of auditor teams; make the audit reports; report and explain the audit result to the chief auditor; cooperate with the chief auditor to report and explain the audit result to State Auditor General; notify the audit result approved by State Auditor General to the audited unit; sign the audit report;

c) Manage members of the audit delegation according to regulations of State Auditor General;

d) Make periodic or extraordinary reports at the request of the chief auditor on the implementation of the audit plan and progress of audit activities.

2. The chief of the audit delegation has the entitlements:

a) Request the audited unit to provide necessary information/documents and explain the issues related to the audit contents; request inventory check and comparison of debts of the audited unit if they are related to the audit contents;

b) Request relevant entities to provide information and documents related to the audit contents in order to collect audit evidence;

c) Suggest the chief auditor to advise State Auditor General deciding inspection of accounts of the audited unit or relevant individuals at credit institutions or State Treasury as prescribed by law; seal documents of the audited unit in case of violations against regulations of law, changing, moving, hiding, destroying documents related to the audit contents;

d) Request the deputy chief of the audit delegation, team leaders, and members of the audit delegation to report the audit results; if there are dissenting opinions about the audit result, the chief of the audit delegation shall make a decision and take responsibility for such decision, the report the dissenting opinions to the chief auditor;

dd) Preserve his/her opinions if they are different from the assessment, confirmation, and opinions in the audit report;

e) Suggest the chief auditor to advise State Auditor General requesting a competent authority to take actions against violations against regulations of law committed by the audited unit;

g) Suspend performance of team leaders and inferior members of the audit delegation if they are suspected of violating Clause 1 Article 8 of this Law.

3. The chief of the audit delegation has the responsibility to:

a) Take responsibility for the operation of the audit delegation to the chief auditor;

b) Take legal responsibility for the legitimacy, truthfulness, and objectiveness of the assessment, confirmation, and opinions in the audit report;

c) Take joint responsibility for violations against regulations of law on audit activities committed by members of the audit delegation; take responsibility for the decisions to suspend team leaders and inferior members of the audit delegation.

Article 40. Duties, entitlements, and responsibility of deputy chief of the audit delegation

The deputy chief of the audit delegation shall perform the tasks given by the chief and take responsibility to the chief for performance of such tasks.

Article 41. Duties, entitlements, and responsibility of team leaders

1. Team leaders have the following duties:

a) Organize the audit under the approved audit plan;

b) Consolidate audit results; make and sign the audit record of the team;

c) Manage their team members according to regulations of State Auditor General.

2. Team leaders have the following entitlements:

a) Request the audited unit to promptly, adequately provide information/documents and explain issues related to the audit contents;

b) Request relevant entities to provide information and documents related to the audit contents;

c) Report team members who commit violations to the chief of the audit delegation, suggest disciplinary actions, and request the chief shall take actions within his/her competence or request a competent agency or person to take actions as prescribed by law;

d) Request the chief of the audit delegation to provide explanation for changing the assessment, confirmation, and opinions written in the audit record or audit report;

dd) Preserve their opinions if they are different from the assessment, confirmation, and opinions written in the audit record or audit report;

e) Request the chief of the audit delegation to suspend team members who are suspected of committing violations mentioned in Clause 1 Article 8 of this Law.

3. Team leaders have the responsibility to:

a) Take responsibility for the operation of their teams to the chief of the audit delegation;

b) Take legal responsibility for the legitimacy, truthfulness, and objectiveness of the assessment, confirmation, and opinions in the audit records of their teams;

c) Explain issues related to operation of their teams at the request of the chief of the audit delegation, competent organizations or persons;

d) Take joint responsibility for violations against regulations of law on audit activities committed by their team members.

Article 42. Duties and entitlements of members of the audit delegation that are state auditors

1. Members of the audit delegation who are state auditors have the following duties:

a) Perform given tasks and report audit results to the chief of the audit delegation and the team leader;

b) Comply with law, audit standards, principles, and procedures, and regulations of State Auditor General during the audit;

c) Collect and assess audit evidence; keep a log of the audit works and documents of state auditors; retain, preserve audit dossiers as prescribed by law;

d) Comply with instructions and conclusions of the team leader and chief of the audit delegation;

dd) Maintain the discipline of the team and audit delegation according to regulations of State Auditor General.

2. State auditors who are members of the audit delegation have the following entitlements:

a) During the audit, state auditors have the right to act independently and only comply with law;

b) Request the audited unit and relevant entities to promptly and adequately provide information/documents related to the audit contents;

c) Using information and documents of collaborators; examine documents related operation of the audited unit; collect, protect documents and other evidence; examine the operation of the audited unit;

d) Preserve their opinions about the audit result and report to the chief of the audit delegation and team leader; report the chief auditor if they do not concur; report to the State Auditor General if the chief auditor does not concur;

dd) Request the chief of the audit delegation and team leader to provide explanation for changing their assessment, confirmation, and opinions written in the audit record or audit report;

e) Suggest the chief of the audit delegation and team leader requesting the audited unit to explain the issues related to the audit; suggest invitation of experts and collaborators where necessary;

g) Be provided with necessary equipment and conditions for carrying out the audit.

Article 43. Duties and responsibility of members of the audit delegation that are not state auditors

1. Members of the audit delegation that are not state auditors include:

a) Officials and civil servants of SAV;

b) Collaborators.

2. Members of the audit delegation that are not state auditors have the following duties and responsibility:

a) Perform the tasks given by the chief of the audit delegation and team leader;

b) Comply with law, audit standards, procedures, and method of SAV;

c) Take responsibility for fulfillment of their tasks to the chief of the audit delegation and team leader.

Section 4. AUDIT PROCEDURES

Article 44. Steps of an audit

1. Prepare the audit.

2. Carry out the audit.

3. Make and send the audit report.

4. Monitor, inspect the implementation of auditors’ opinions.

Article 45. Preparing the audit

1. Survey, collect information about the internal control system, financial status, and relevant information about the audited unit.

2. Assess the internal control system and collected information about the accounting unit to determine the targets, contents, scope, and method of audit.

3. Make the audit plan.

Article 46. Carrying out the audit

1. The audit delegation shall carry out the audit in accordance with the audit decision.

2. Members of the audit delegation shall apply audit methods to collect and assess audit evidence; carry out inspection, comparison, and confirmation; investigate entities related to the audit for the basis for making assessment, confirmation, and auditors’ opinions about the audited contents.

Article 47. Making and sending the audit report

1. Within 30 days from the end of the audit at the audited unit, SAV shall complete the draft audit report and send it to the audited unit for opinions.

2. Within 10 days from the receipt of the draft audit report, the audited unit must send opinions in writing to SAV; if the audited unit does not express any opinions by the said deadline, it will be considered that the audited unit agrees with the draft audit report.

3. The audit report shall be sent by SAV to the audited unit and relevant agencies according to regulations of State Auditor General within 45 days from the end of the audit. This deadline may be extended up to 60 days form the end of the audit.

4. Reports on audit of local government budget statements shall be sent to deputies of the National Assembly, the People’s Councils and the People’s Committees at the same administrative level; reports on audit of provincial budget statements shall also be sent to the Ministry of Finance.

Article 48. Making and sending reports on audit of state budget statements and annual consolidated audit reports of SAV

1. Reports on audit of state budget statements shall be made in accordance with Clauses 1, 2, 3 Article 47 of this Law.

2. The annual consolidated audit report of SAV shall be made on the basis of the reports on audit of state budget statements and consolidated audit results in the year of SAV.

3. SAV shall send reports on audit of state budget statements and annual consolidated audit report to the National Assembly, Standing Committee of the National Assembly, Ethnic Council, Committees of the National Assembly within 16 months after the end of the budget year, and also to the President, the Government, and the Prime Minister.

Article 49. Inspecting implementation of auditors’ opinions

1. SAV shall plan and organize inspection of accounting units’ implementation of opinions given by SAV.

2. The inspection of implementation of auditors’ opinions shall be carried out as follows:

a) Request the audited unit to submit a written report on implementation of auditors’ opinions.

b) Carry out inspection of the implementation of auditors’ opinions at the audited unit and relevant organizations/units.

3. SAV shall make and send the report on implementation of auditors’ opinions. Reports on implementation of opinions of SAV shall be sent in accordance with Clause 3 Article 48 of this Law.

Section 5. PUBLISHING OF AUDIT RESULT AND COMPLIANCE WITH AUDITORS’ OPINIONS

Article 50. Publishing of audit reports

1. An audit report shall be published after its issuance, except for the contents considered state secrets as defined by law.

2. State Auditor General shall organize the publishing of audit results in one or some of the following manners:

a) Press conference;

b) Posting on Official Gazette and the media

c) Posting on websites and publications of SAV;

d) Posting at the office of audited unit.

Article 51. Publishing of annual consolidated audit reports and compliance with auditors’ opinions

1. The annual report on consolidated audit results and compliance with opinions given by SAV shall be published after they are submitted to the National Assembly as prescribed by law.

2. The methods of publishing are prescribed in Points a, b, c Clause 2 Article 50 of this Law.

Section 6. AUDIT DOSSIER

Article 52. Audit dossier

1. Documents of each audit must be compiled into a dossier.

2. State Auditor General shall promulgate specific regulations on audit dossiers.

3. Every audit dossier must be archived within 12 months from the publishing date of the audit report.

4. Each audit dossier shall be kept in archive for at least 10 years, unless otherwise decided by a competent authority.

Article 53. Preservation and use of audit dossiers

1. Audit dossiers must be preserved in full and safely.

2. Audit dossiers may only be used in the following cases:

a) At the request of People’s Court, the People’s Procuracy, investigation agency, and relevant agencies as prescribed by law;

b) There is a request for audit quality assessment; complaints about audit reports; making of next period’s audit plan, and other demands under decisions of State Auditor General.

Article 54. Destruction of audit dossiers

1. Audit dossiers shall be destroyed under decisions of State Auditor General after the expiration of retention period, unless otherwise decided by a competent authority.

2. State Auditor General shall decide establishment of a Destruction Council in charge of destruction of expired audit dossiers. The Destruction Council must check and compile a list audit dossiers to be destroyed and make a record on destruction of expired audit dossiers.

3. Audit dossiers shall be destroyed in accordance with law.

Chapter V

RIGHTS AND OBLIGATIONS OF AUDITED UNITS

Article 55. Audited unit

Audited units include:

1. Ministries, ministerial agencies, Governmental agencies, and other central regulatory agencies.

2. Agencies assigned to execute state budget receipts and expenditures at various administrative levels.

3. The People’s Councils, the People’s Committees, other local regulatory agencies

4. Units of the People’s armed forces.

5. Units in charge of management, use of national reserve; off-budget financial fund.

6. Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations using funding provided by the State.

7. Public service agencies.

8. Organizations in charge of national property management.

9. Management boards of projects whose funding is provided by or derived from state budget.

10. Enterprises over 50% charter capital of which is held by the State. With regard to enterprises ≤50% charter capital of which is held by the State, State Auditor General shall decide appropriate audit targets, criteria, contents, and methods where necessary.

11. Units receiving subsidies from the State, units whose debts are guaranteed by the State other than enterprises that manage, use state capital and/or state property. These units may hire audit firms; audit firms must carry out the audits in accordance with the state audit standards and procedures, then send audit reports to SAV.

12. Agencies in charge of managing, using public debts.

Article 56. Rights of audited units

1. Request the audit delegation to present the audit decision, state auditors to present state auditor’s card.

2. Refuse to provide information and documents that are not relevant to the audit contents; request replacement of members of the audit delegation if there is evidence that such members are not honest or objective while performing their duties or are not qualified as members of the audit delegation according to Article 28 of this Law.

3. Provide written explanation of the issues mentioned in the draft audit report if it is deemed unsatisfactory.

4. File complaints against acts of member of the audit delegation during the audit on the grounds that such acts are illegitimate.

5. File complaints against assessment, confirmation, and opinions of auditors in the audit report on the grounds that they are illegitimate.

6. Request SAV to pay compensation for damage as prescribed by law.

7. Exercise other rights prescribed by law.

Article 57. Duties of audited units

1. Comply with the audit decision.

2. Promptly, adequately make and send financial statements, reports on use of capital, project management; revenue and expenditure plan, report on execution and statement of budget to SAV on request.

3. Promptly and adequately provide information, documents serving the audit at the request of SAV and state auditors; take responsibility for the accuracy, truthfulness, and objectiveness of the information, documents provided.

4. Respond and explain the issues related to the audit contents at the request of the audit delegation and state auditors.

5. Sign the audit record.

6. Comply with opinions given by SAV with regard to management, use of public finance and/or public property; take measures for overcoming the weaknesses according to the opinions of SAV; submit a written report on compliance with such opinions to SAV.

7. Comply with opinions given by SAV while awaiting settlement of complaints, unless State Auditor General or a competent authority suspends the implementation of opinions given by SAV.

Article 58. Responsibility to send financial statements, state budget statements, and budget estimates of audited units

1. At the end of the budget year, budget estimate units level I of central government budget, the People’s Committees of provinces, and audited units shall send their financial statements, state budget statements, and budget estimates of the next year to SAV.

2. The Ministry of Finance, Departments of Finance of provinces shall send reports on execution of budget estimates in the year to SAV.

3. State Auditor General shall specify time and location for receiving reports as prescribed by law.

Chapter VI

ASSURANCE OF OPERATION OF SAV

Article 59. Funding and infrastructure and equipment of SAV

1. The State shall provide sufficient funding, infrastructure and equipment for SAV as prescribed by law. Estimates of funding for SAV shall be made by SAV and sent to the Government for consolidation and submission to the National Assembly.

2. Management, provision, and use of funding for SAV shall comply with regulations of law on state budget.

Article 60. Payroll of SAV

The payroll of SAV shall be decided by Standing Committee of the National Assembly at the request of State Auditor General.

Article 61. Investment in modernization of SAV’s activities

The State shall have policies on investment in development of infrastructure, information technology, and other equipment to facilitate organization and operation of SAV and serve international integration.

Article 62. Benefits of officials of SAV

Salaries, allowances, clothing, and priority of officials of SAV shall be prescribed by Standing Committee of the National Assembly.

Chapter VII

RESPONSIBILITY OF OTHER ENTITIES TO OPERATION OF SAV

Article 63. Responsibility of the National Assembly to SAV

1. The National Assembly, Standing Committee of the National Assembly, Ethnic Council, Committees of the National Assembly, deputies of the National Assembly, within their competence, shall supervise operation of SAV as prescribed by law.

2. State Auditor General shall report audit results and works of SAV to the National Assembly, Standing Committee of the National Assembly; make reports, explanation; provide documents; consider and respond to suggestions of electronic invoices, Committees of the National Assembly, deputies of the National Assembly; respond to enquiries of deputies of the National Assembly before the National Assembly or Standing Committee of the National Assembly.

Article 64. Responsibility of the Government to SAV

The Government, Ministries, and ministerial agencies, within their competence, shall cooperate with SAV in organizing state audits; request relevant agencies to make report compliance to opinions given by SAV.

Article 65. Responsibility of investigation agencies and the People’s Procuracies

Investigation agencies and the People’s Procuracies shall handle the suspected criminal cases discovered by SAV within their competence.

Article 66. Responsibility of the People’s Councils

The People’s Councils shall supervise compliance with opinions given by SAV locally.

Article 67. Responsibility of the People’s Committees

1. Request local agencies to promptly and adequately provide information, documents serving operation of SAV.

2. Request local agencies comply with and make reports on compliance to opinions given by SAV.

Article 68. Responsibility of entities relevant to state audit activities

1. Entities relevant to state audit activities have the responsibility to promptly and adequately provide information, documents serving the audit at the request of SAV and state auditors; take responsibility for the accuracy, truthfulness, and objectiveness of the information, documents provided.

2. Relevant entities have the responsibility to comply with opinions given by SAV and send reports to SAV.

3. The Ministry of Finance, the Ministry of Planning and Investment, other agencies of the Government, the People’s Committees of provinces have the responsibility to promptly and adequately provide information, documents for SAV to perform the tasks mentioned in Clause 4 Article 10 of this Law.

Chapter VIII

COMPLAINTS, DENUNCIATION, AND PENALTIES FOR VIOLATIONS AGAINST REGULATIONS ON GORVERNMENTAL AUDIT ACTIVITIES

Article 69. Complaints and settlement of complaints about state audit activities

1. Complaints and settlement of complaints about state audit activities shall comply with regulations of law on complaints.

2. Complaints and settlement of complaints about audited units:

a) During the audit process, the audited unit is entitled to file complaints to State Auditor General about acts of the chief of the audit delegation, team leader, and members of the audit delegation if there is evidence that such acts are illegitimate and negatively affect its the lawful rights and interests;

b) Within 30 days from the receipt of the audit report, the audited unit is entitled to file complaints to State Auditor General about the assessment, confirmation, auditors’ opinions in the audit report if there is evidence that they are illegitimate and negatively affect its the lawful rights and interests;

c) Procedures for settling audit-related complaints shall comply with regulations of the Law on complaints;

d) Rights and obligations of the complainers, defenders, complaint handlers, lawyers, legal assistants, implementation of effective decision on complaint settlement, and prohibited acts are specified in the Law on complaints.

Article 70. Denunciations and settlement of denunciations about state audit activities

Denunciations and settlement of denunciations about state audit activities shall comply with regulations of law on denunciations.

Article 71. Actions against violations

Entities that commit violations against regulations of law on state audit shall be dealt with as prescribed by law depending on the nature and severity of the violations.

Chapter IX

IMPLEMENTATION

Article 72. Effect

1. This Law comes into force from January 01, 2016.

Audit of enterprises over 50% charter capital of which is held by the State which is already included in the audit plan of 2015 shall be implemented until the audit plan is completed.

2. The Law on SAV No. 37/2005/QH11 expires from the effective date of this Law.

Article 73. Elaboration

Standing Committee of the National Assembly and State Auditor General shall elaborate given Articles and clauses of this Law.

This Law is ratified by the 13th National Assembly of the Socialist Republic of Vietnam during the 9th session on June 24, 2015.

 

PRESIDENT OF NATIONAL ASSEMBLY Nguyen Sinh Hung