Audit standards of the State Audit Office of Viet Nam 2024: Meeting practical and international integration requirements
(sav.gov.vn) - In order to enhance the audit quality and meet practical and international integration requirements, Auditor General Ngo Van Tuan, has signed Decision No. 08/2024/QĐ-KTNN, issuing the Audit Standards of the State Audit Office of Viet Nam (SAV) (SAV ASs).
An ever-improving standards
SAV AS are the highest by-law legal documents that regulate and guide the requirements, principles, audit procedures, and handling of emerging issues in audit activities that SAV auditors and stakeholders must comply with when conducting audits. The new AS include a glossary and 43 audit standards, covering three types of audits: financial statement audits, compliance audits, and performance audits.
This set of AS serves as a guiding framework, ensuring that SAV’s auditors adhere to professional ethical standards and enhance their professional competence. Compliance with the AS will guarantee the quality of audits, ensuring accurate and honest audit results that build trust among the public and users of audit reports. As a result, the reputation and position of SAV will be elevated, helping the Office to fulfil the duties entrusted by the Party, the National Assembly, and the people.
Auditor General Ngo Van Tuan
This is the fourth time SAV has issued its audit standards. Previously, the first version of the Standards was issued in 1999, comprising 14 standards. Following three revisions and additions in 2010 (with 21 standards), 2016 (with 39 standards), and now in 2024 (with 43 standards), audit standards have progressively improved, aligning with Viet Nam’s actual situation and practical needs as well as international practices. It has become a guiding principle for SAV’s audit activities.
Prof., Dr. Doan Xuan Tien, former Deputy Auditor General and Deputy Head of the Steering Committee for the revision of the SAV ASs, stated that the AS 2016 had made positive contributions to enhancing the quality, efficiency, and effectiveness of audits over the nearly eight years of its application. However, during implementation, some limitations and issues emerged, requiring revisions and improvements.
Furthermore, in 2019, the Law on Amendments and Supplements to the State Audit Law required SAV to expand its operation scope and enhance audit quality. The SAV’s Development Strategy by 2030 set a goal to complete the SAV AS in accordance with the international practices and meet the SAV’s operation conditions in a digital environment. The International Organisation of Supreme Audit Institutions (INTOSAI) also revised its audit standards into a professional framework (IFPP). At the same time, SAV’s operational practices have also undergone certain changes.
The issuance of a new set of SAV SAs is therefore essential to update the revisions of the international audit standards by INTOSAI (ISSAI), ensuring compatibility with Viet Nam’s laws, management mechanisms, and SAV’s operational environment and conditions. Based on nearly eight years of applying the 2016 ASs, SAV has reviewed and amended it for practicality, ensuring consistency, feasibility, and alignment with international practices and current legal regulations.
Four key innovations
According to Prof., Dr. Doan Xuan Tien, with the above revision approach, the new set of SAV AS includes the following notable innovations:
Firstly, SAV has updated and supplemented new contents in the AS based on 2019 ISSAIs, ensuring relevance to Viet Nam’s practical conditions; Secondly, SAV does not include specific technical, organisational, or management guidelines for audit activities. These issues will be studied and developed into specific manuals for technical expertise and organisational management in auditing, ensuring flexibility in the future implementation of the standards; Thirdly, to align with ISSAIs, SAV has modified the numbering of the AS to match the ISSAIs. Notably, this revised SAV AS has added four standards compared to the 2016 edition, including: AS 150 - Competence of SAV’s auditors; AS 2701 - Presentation of key audit issues in audit reports; AS 2720 - Auditor’s Responsibilities for other information in audited financial statements; and AS 2810 - Opinion on summary financial statements; Fourthly, in the new SAV AS, the responsibilities, duties, and powers of SAV, SAV’s auditors, audited entities, and stakeholders are more clearly defined, ensuring compliance with current legal regulations and promoting transparency in audit activities.
Enhancing transparency and accountability in audit activities
The revision of the SAV AS is of great significance in developing the organisation, operation, and enhancing the position and reputation of SAV.
Firstly, the new set of SAV AS provides a legal basis for the organisation and audit activities. It is a prerequisite to ensure that audit activities are transparent, clear, and accountable, increasing the accountabilitiy of SAV and its auditors, as well as the audited entities, while contributing to building a strong and sustainable national financial system.
The revised SAV AS is one of the key factors in improving audit quality, strengthening the monitoring and control of public finances and assets, and building trust and credibility among leadership, units, and the social community in SAV’s activities.
The revision of the SAV AS also contributes to enhancing professionalism in auditing. This requires SAV’s auditors to improve their skills and competencies. Additionally, the revision of the standards is aimed at meeting the requirements of modernising audit technologies, especially in applying 4.0 technologies in audit operations, ensuring alignment with ISSAIs and facilitating SAV’s deeper international integration and cooperation.
Given these practical benefits, implementing the revised SAV AS into audit practices is a top priority for the Office moving forward.
Decision No. 08/2024/QĐ-KTNN, dated 15 November 2024, will take effect from 1 January 2025 and replaces Decision No. 02/2016/QĐ-KTNN, issued on 15 July 2016.The Auditor General requires the heads of SAV’s units, audit delegations and their members, and relevant organisations and individuals to be responsible for the implementation of this decision.
SAV AS are the highest by-law legal documents that regulate and guide the requirements, principles, audit procedures, and handling of emerging issues in audit activities that SAV auditors and stakeholders must comply with when conducting audits. The new AS include a glossary and 43 audit standards, covering three types of audits: financial statement audits, compliance audits, and performance audits.
This set of AS serves as a guiding framework, ensuring that SAV’s auditors adhere to professional ethical standards and enhance their professional competence. Compliance with the AS will guarantee the quality of audits, ensuring accurate and honest audit results that build trust among the public and users of audit reports. As a result, the reputation and position of SAV will be elevated, helping the Office to fulfil the duties entrusted by the Party, the National Assembly, and the people.
Auditor General Ngo Van Tuan
This is the fourth time SAV has issued its audit standards. Previously, the first version of the Standards was issued in 1999, comprising 14 standards. Following three revisions and additions in 2010 (with 21 standards), 2016 (with 39 standards), and now in 2024 (with 43 standards), audit standards have progressively improved, aligning with Viet Nam’s actual situation and practical needs as well as international practices. It has become a guiding principle for SAV’s audit activities.
Prof., Dr. Doan Xuan Tien, former Deputy Auditor General and Deputy Head of the Steering Committee for the revision of the SAV ASs, stated that the AS 2016 had made positive contributions to enhancing the quality, efficiency, and effectiveness of audits over the nearly eight years of its application. However, during implementation, some limitations and issues emerged, requiring revisions and improvements.
Furthermore, in 2019, the Law on Amendments and Supplements to the State Audit Law required SAV to expand its operation scope and enhance audit quality. The SAV’s Development Strategy by 2030 set a goal to complete the SAV AS in accordance with the international practices and meet the SAV’s operation conditions in a digital environment. The International Organisation of Supreme Audit Institutions (INTOSAI) also revised its audit standards into a professional framework (IFPP). At the same time, SAV’s operational practices have also undergone certain changes.
The issuance of a new set of SAV SAs is therefore essential to update the revisions of the international audit standards by INTOSAI (ISSAI), ensuring compatibility with Viet Nam’s laws, management mechanisms, and SAV’s operational environment and conditions. Based on nearly eight years of applying the 2016 ASs, SAV has reviewed and amended it for practicality, ensuring consistency, feasibility, and alignment with international practices and current legal regulations.
Four key innovations
According to Prof., Dr. Doan Xuan Tien, with the above revision approach, the new set of SAV AS includes the following notable innovations:
Firstly, SAV has updated and supplemented new contents in the AS based on 2019 ISSAIs, ensuring relevance to Viet Nam’s practical conditions; Secondly, SAV does not include specific technical, organisational, or management guidelines for audit activities. These issues will be studied and developed into specific manuals for technical expertise and organisational management in auditing, ensuring flexibility in the future implementation of the standards; Thirdly, to align with ISSAIs, SAV has modified the numbering of the AS to match the ISSAIs. Notably, this revised SAV AS has added four standards compared to the 2016 edition, including: AS 150 - Competence of SAV’s auditors; AS 2701 - Presentation of key audit issues in audit reports; AS 2720 - Auditor’s Responsibilities for other information in audited financial statements; and AS 2810 - Opinion on summary financial statements; Fourthly, in the new SAV AS, the responsibilities, duties, and powers of SAV, SAV’s auditors, audited entities, and stakeholders are more clearly defined, ensuring compliance with current legal regulations and promoting transparency in audit activities.
Enhancing transparency and accountability in audit activities
The revision of the SAV AS is of great significance in developing the organisation, operation, and enhancing the position and reputation of SAV.
Firstly, the new set of SAV AS provides a legal basis for the organisation and audit activities. It is a prerequisite to ensure that audit activities are transparent, clear, and accountable, increasing the accountabilitiy of SAV and its auditors, as well as the audited entities, while contributing to building a strong and sustainable national financial system.
The revised SAV AS is one of the key factors in improving audit quality, strengthening the monitoring and control of public finances and assets, and building trust and credibility among leadership, units, and the social community in SAV’s activities.
The revision of the SAV AS also contributes to enhancing professionalism in auditing. This requires SAV’s auditors to improve their skills and competencies. Additionally, the revision of the standards is aimed at meeting the requirements of modernising audit technologies, especially in applying 4.0 technologies in audit operations, ensuring alignment with ISSAIs and facilitating SAV’s deeper international integration and cooperation.
Given these practical benefits, implementing the revised SAV AS into audit practices is a top priority for the Office moving forward.
Decision No. 08/2024/QĐ-KTNN, dated 15 November 2024, will take effect from 1 January 2025 and replaces Decision No. 02/2016/QĐ-KTNN, issued on 15 July 2016.The Auditor General requires the heads of SAV’s units, audit delegations and their members, and relevant organisations and individuals to be responsible for the implementation of this decision.
