Opening new prospects for cooperation between the State Audit Office of Viet Nam and Audit Agencies in the United Kingdom

16/10/2024
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(sav.gov.vn) – A high-level delegation from the State Audit Office of Viet Nam (SAV) led by Auditor General Ngo Van Tuan has just successfully concluded a working visit to the United Kingdom, paving the way for new prospects in cooperation between SAV and audit agencies in the United Kingdom (UK). Mr. Nguyen Ba Dung, Director General of the International Cooperation Department, shared some notable results of this mission with the Audit Newspaper.

Could you please share some of the notable results that the delegation of SAV has achieved during the visit to the UK?

The working visit of the SAV delegation to the UK, led by Auditor General Ngo Van Tuan, has yielded practical results, contributing to the promotion of international cooperation and enhancing the audit capacity of the SAV.

During a meeting with the Association of Chartered Certified Accountants (ACCA), both sides discussed topics of mutual interest, namely the environmental auditing and international standards for sustainable financial reporting for sustainable development. Ms. Helen Brand, Global CEO of ACCA, affirmed that the visit of the Auditor General of Viet Nam has reinforced the partnership between SAV and ACCA. This not only supports the development of the accounting and auditing sectors in Viet Nam but also creates opportunities for further collaboration in the financial sector.

At a seminar with the National Audit Office of the UK (UK NAO), SAV gained valuable experience in fraud prevention auditing. By successfully applying a risk-based audit approach, UK NAO has optimized its resources and focused on high-risk areas. Notably, the leveraging of modern technologies such as Big Data and Artificial Intelligence (AI) has enabled UK NAO to conduct audits of the whole population rather than relying on samples. These are invaluable experiences that can assist SAV in modernizing its audit processes.

In the discussion with the Wales Audit Office, both organisations explored measures for preventing frauds and errors and enhancing the transparency of national finances. The Wales Audit Office shared its National Fraud Prevention Initiative which has been implemented biannually since 1996. The 2022-2023 examination of this Initiative uncovered violations worth £7.1 million, with 4,354 datas entries flagged as fraudulent or erroneous. These are significant lessons for the SAV in its audits of anti-corruption efforts.

Additionally, the collaboration in training and enhancing auditors’ capacities is one of the notable achievements of this visit. The audit agencies in the UK have shared specialized materials, in-depth training programs and have considered sending experts to assist the SAV auditors in updating their knowledge of international audit standards and advanced audit methods. ACCA expressed its willingness to cooperate with the SAV in developing short-term training courses and suitable training materials in public sector, aiming to enhance human resources quality and meet future development needs.

After this mission in the UK, which experience of the UK NAO and the Wales Audit Office can SAV apply?

Thanks to the mission in the UK, SAV has drawn several important lessons from UK NAO and the Wales Audit Office. One key experience is the use of a risk-based audit approach. This not only helps conserve resources but also enhance effectiveness of audits of the large national projects and programs. Focusing on high-risk areas enables auditors to provide timely and accurate recommendations, contributing to increasing transparency in public finances.

Another significant lesson is the application of technologies in auditing. The UK NAO and the Wales Audit Office have successfully leveraged advanced data analytics technologies based on Big Data and AI in their audit processes. This makes the data verification process more precise, especially in detecting anomalies and frauds. Consequently, the UK NAO has been able to conduct audits on the entire population in stead of sampling. This is a remarkable development that SAV should consider to keep pace with modern technological trends in auditing.

SAV could consider to publish a document that combiles best practices, valuable lessons and experience gained through the conduct of its audits which will be then shared with audited entities and other state agencies of Viet Nam.

What prospects could this mission open up for cooperation between SAV and the UK NAO and the Wales Audit Office?

This mission has opened many new prospects for cooperation between SAV and both UK NAO and the Wales Audit Office. Both two audit agencies highly appreciated the cooperation proposals of the SAV delegation and have suggested maintaining regular communication to develop suitable collaborative programs. All parties were keen to further enhance professional exchange programs, including organizing seminars and workshops on auditing.

Notably, the relationship between SAV and UK NAO has been strengthened through mutual support at international forums, such as the International Organization of Supreme Audit Institutions (INTOSAI). This provides an important foundation for both sides to continue collaborating and addressing global audit profession-related issues.

Thank you very much!

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