Enhancing professionalism, transparency and accountability in audit activities
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After four years of establishment, the SAV issued its first set of SAS in 1999, consisting of 14 standards. Since then, the set has undergone three revisions and updates in 2010, 2016, and 2024, with the number of standards increasing to 21, 39, and 43, respectively. The latest system, issued on November 15, 2024, continues to apply to all three types of audits: financial audit, compliance audit, and performance audit. |
The 2016 set of SAS was developed based on the State Audit Law, selectively adopting standards from the International Standards of Supreme Audit Institutions (ISSAI) issued by INTOSAI - the International Organization of Supreme Audit Institutions. These standards were adjusted to align with Viet Nam laws, management mechanisms, and the operational conditions of the SAV. Over more than eight years of practical application, the 2016 set of SAS has contributed to improving the quality, efficiency, and effectiveness of the SAV's activities.
However, the foundations for developing and applying the 2016 set of SAS have since changed, including the amendment of the State Audit Law in 2019, the transition of the ISSAI system to the INTOSAI Framework of Professional Pronouncements (IFPP), and shifts in the audit environment and practices in Viet Nam. Notably, the SAV's Development Strategy to 2030 (2021-2030), issued under Resolution No. 999/2020/UBTVQH14 by the National Assembly Standing Committee on September 16, 2020, has set forth the requirement to further refine the SAS to align with international practices and meet audit demands in a digital environment.
Thus, issuing the new SAS is crucial for updating modifications in the ISSAI system, ensuring consistency with Viet Nam laws and management mechanisms, and adapting to the SAV's operational environment. Based on nearly eight years of experience applying the 2016 set of SAS, the SAV conducted a comprehensive review and revision to maintain continuity, feasibility, and alignment with international practices, audit realities, and current legal regulations.
The SAS framework encompasses ethical rules that help state auditors uphold and enhance professional ethics and integrity. It establishes fundamental principles, guiding frameworks, and procedural requirements that auditors must study and implement during audits. The SAS provides professional and technical guidance to ensure auditors maintain objectivity and professionalism while employing appropriate audit approaches, gathering and evaluating audit evidence, and forming audit opinions. This, in turn, ensures audit results are assessed objectively and transparently, fostering public trust in audit reports. Additionally, the system strengthens financial and asset management discipline, providing the National Assembly, Government, relevant agencies, and audited entities with valuable recommendations, thereby enhancing the effectiveness of financial oversight and state budget approval processes of the National Assembly and Peoples’s Councils at all level.
What are the key differences between the newly issued set of SAS and the 2016 or previous versions?
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The continuous development and refinement of the SAS aim to make it more suitable for Viet Nam’s realities and international standards, serving as a guiding framework for the SAV’s audit activities. The 2024 set of SAS introduces four new standards: SAS 150 – Competency of State Auditors, SAS 2701 – Presentation of Key Audit Matters in the Audit Report, SAS 2720 – Responsibilities of State Auditors regarding Other Information in Documents containing Audited Financial Statements, SAS 2810 – Providing Opinions on Summarized Financial Statements. |
The revision and supplementation of the SAS were carried out with the objective of meeting practical audit requirements, aligning with international standards, and complying with the newly issued legal regulations. The revised 43 SAS presents several significant updates:
Firstly, the ISSAI framework has undergone substantial changes in terms of classification, nomenclature, and numbering of standards. Some ISSAI standards have been extensively revised in content and structure, such as ISSAI 2315 (Identifying and Assessing the Risks of Material Misstatement) and ISSAI 2540 (Accounting Estimates). Alongside emphasizing ethical principles, the new ISSAI framework also highlights auditor competency and has introduced ISSAI 150 (Professional Competency). Consequently, the 2016 set has been updated by modifying, consolidating, and restructuring standards in line with these ISSAI revisions.
Secondly, in accordance with amendments to the State Audit Law and Viet Nam legal regulations, some SAS have been edited and supplemented to incorporate specific provisions of Regulation No. 131-QD/TW, issued by the Politburo on October 27, 2023 on power control, anti-corruption, and the prevention of negativity in inspection, supervision, disciplinary enforcement, and audit activities.
Thirdly, to align with audit practices and the evolving landscape of information technology, several SAS now include provisions related to IT applications, such as risk assessment, material misstatement analysis, and audit planning.
Fourthly, the new SAS system has undergone changes in the number of standards and their structure and content compared to the 2016 version. Key areas, including professional ethics and the competency of state auditors, have been emphasized to further enhance auditor independence, objectivity, and professionalism, as well as the quality and effectiveness of SAV’s audit activities.
Given these significant updates, what impact do you expect the revised SAS to have on audit activities and the future development of the SAV?
The revision of the SAS is crucial for ensuring the sustainable development of the SAV’s organization and operations while elevating its reputation and credibility.
First and foremost, the SAS framework provides a solid foundation for refining the SAV’s audit processes and developing audit guidelines tailored to emerging challenges and practical requirements.
The SAS enables state auditors to effectively address real-world audit challenges, contributing to increased professionalism in auditing. It also facilitates technological advancements in auditing, particularly the integration of Industry 4.0 technologies into audit activities, while supporting auditors in international integration.
The revised set of SAS is a key driver for enhancing audit quality, strengthening oversight and control over public financial and asset management, and fostering public trust in the SAV’s operations. By ensuring greater accountability and transparency, the SAS reinforces the confidence of government leaders, audited entities, and society at large in state audit activities.
According to you, what are the necessary conditions for the newly issued SAV Auditing Standards System to be implemented in practice soon?
The prompt implementation of the newly issued set of SAS in audit activities is one of the sector's top priorities in the near future. To ensure a comprehensive and effective rollout, it is essential to develop a specific and feasible implementation plan and roadmap.
First and foremost, it is necessary to raise awareness across the entire Office about the significance and importance of applying and complying with the SAS. Only with this understanding can the implementation of the system be practical and effective.
SAV's affiliated units must recognize the application of the SAS as a key priority task. Based on this, they should proactively develop specific plans for its implementation.
To ensure a uniform and comprehensive application of the SAS in practice, training and capacity-building programs must be conducted. However, these programs need to be innovated in both format and methodology. Training should be conducted at both the Office-wide level and within individual affiliated units, combining theoretical learning with hands-on practice and direct guidance. Additionally, periodic evaluations of training outcomes should be conducted, along with specific assessments based on the results of professional task execution.
Furthermore, audited entities, National Assembly bodies, ministries, local authorities, and the public must also gain a clearer understanding of the legal status, role, and functions of SAV in auditing the management and use of public finance and assets. This will help enhance oversight, improve coordination quality, and ensure that the newly issued auditing standards are effectively applied in practice. By doing so, SAV can strengthen its capacity, enhance its role and position, and contribute to building a more transparent, sound, and sustainable national financial system.
