Dear State Auditor General! The State Audit has just issued the State Audit Standards System consisting of 43 standards. As the Head of the Steering Committee for amending and supplementing the State Audit Standards System, could you tell us why the State Audit is amending and issuing a new System of standards at this time?
The 2016 State Audit Standards System was built on the basis of compliance with the State Audit Law, selectively adopting standards of the International Auditing Standards System (ISSAI) issued by INTOSAI - the International Organization of Supreme Audit Institutions, in accordance with Vietnamese law, Vietnam's management mechanism, and the conditions and environment for auditing activities of the State Audit of Vietnam. After more than 8 years of application in practice, the 2016 State Audit Standards System has contributed to improving the quality, efficiency and effectiveness of the State Audit's operations.
However, the basis for the development and application of the State Audit System in 2016 has changed, including the Law on State Audit amended and supplemented in 2019, the International Auditing Standards System issued by INTOSAI has been converted into the Framework of Professional Statements of INTOSAI (IFPP), the conditions and practices of auditing activities of the State Audit of Vietnam have also changed a lot. In particular, the State Audit Development Strategy to 2030 (Period 2021-2030) issued together with Resolution No. 999/2020/UBTVQH14 dated September 16, 2020 of the Standing Committee of the National Assembly has set out the requirement to continue perfecting the State Audit System in accordance with international practices and meeting auditing requirements in the digital environment.
Therefore, the issuance of the new State Auditing Standards System is extremely necessary to update the amendments and supplements to the International Auditing Standards System developed by INTOSAI (ISSAI); ensuring compliance with the laws, management mechanisms of Vietnam, conditions and operating environment of the State Audit of Vietnam. Based on research and summarizing nearly 8 years of applying the State Auditing Standards System in 2016, the State Audit has reviewed and revised accordingly, ensuring inheritance, feasibility, compliance with international practices and auditing practices as well as new current legal regulations.
The State Audit Standards include professional ethics rules that help state auditors maintain and improve their professional ethics and competence; they are the fundamental principles, frameworks, requirements, and procedural sequences that state auditors must study and apply during the audit process. The State Audit Standards system is a professional guidance that ensures professionalism and objectivity for state auditors, providing approaches, methods of collecting and evaluating audit evidence and giving audit opinions. Thereby achieving the set audit objectives, ensuring that audit results are evaluated objectively and honestly to meet the trust of users of audit reports; contributing to enhancing publicity, transparency, discipline and order in the management and use of public finance and public assets; providing the National Assembly, the Government, competent agencies and audited units with many practical recommendations; increasingly better meet the information requirements for the supervision and approval of state budget settlement activities of the National Assembly and People's Councils at all levels.
After 4 years of establishment, the State Audit Office issued the first National Auditing Standards System in 1999, consisting of 14 standards. Since then, the State Audit Office has revised, supplemented and issued the National Auditing Standards System 3 times in 2010, 2016 and 2024, with the number of standards increased to 21, 39 and 43, respectively. The latest National Auditing Standards System, issued on November 15, 2024, still regulates all 3 types: Financial audit, compliance audit and performance audit.
So what is new in the newly issued National Accounting System compared to the 2016 National Accounting System and previous National Accounting Systems, sir?
With the view of amending and supplementing the State Auditing Standards System to meet the requirements set forth from the State Audit's auditing practices, in accordance with international practices as well as newly issued legal regulations, the System of 43 State Auditing Standards this time has some outstanding new points as follows:
Firstly, the ISSAI System has many changes in terms of levels, names and numbers of standards. Some ISSAIs have been revised and supplemented in terms of content and structure such as ISSAI 2315 (Identifying and assessing the risks of material misstatement) and ISSAI 2540 (Accounting estimates). In addition to editing and emphasizing the principles of professional ethics, the new ISSAI System also emphasizes the competence of auditors and has built and supplemented ISSAI 150 (Professional competence). Based on the changes of the ISSAI System, the 2016 State Audit Standards System has been updated in the direction of revising, supplementing, combining, separating State Audit Standards and building a number of new State Audit Standards to be consistent and consistent with the revised and supplemented ISSAI System.
Second, on the basis of amendments and supplements according to the State Audit Law, regulations and laws of Vietnam, a number of State Audit Standards in the State Audit System that have just been issued have been edited, updated and supplemented with some specific contents of Regulation No. 131-QD/TW dated October 27, 2023 of the Politburo on controlling power, preventing and combating corruption and negativity in inspection, supervision, enforcement of party discipline and in inspection and auditing activities.
Third, to ensure compliance with auditing practices and the development trend of information technology, a number of CMKTNNs have been supplemented and integrated with regulations on information technology application such as identifying and assessing the risk of material misstatements and audit planning...
Fourthly, the new State Auditing Standards System has changed both in terms of the number of State Auditing Standards and the structure and content of each State Auditing Standards compared to the 2016 State Auditing Standards System. Some contents are emphasized by many State Auditing Standards such as professional ethics and professional capacity of state auditors to further enhance the independence, objectivity and professionalism of state auditors as well as the quality and effectiveness of the State Audit's auditing activities.
The system of issued State Audit Standards, which is increasingly improved and more suitable to Vietnamese practice as well as international practices, is a guideline for the auditing activities of the State Audit. 04 State Audit Standards will be added to the State Audit Standards System in 2024, including: State Audit Standards 150 - Competence of state auditors, State Audit Standards 2701 - Presentation of important audit issues of the audit in the audit report, State Audit Standards 2720 - Responsibility of state auditors for other information in documents containing audited financial statements, State Audit Standards 2810 - Giving opinions on summary financial statements.
With those important new points, what significance do you expect the State Auditing System to have for auditing activities as well as the development of the State Audit in the coming time, sir?
This revision of the State Audit System is very important for the sustainable development of the organization and operation as well as enhancing the position and reputation of the State Audit in the coming time.
First of all, the State Audit System will be a solid foundation for perfecting the State Audit's auditing process and auditing guidelines for the fields and activities of the State Audit arising in practice.
The CMKTNN system helps state auditors approach more effectively, in accordance with practical issues; contributes to improving professionalism in auditing activities; aims to meet the requirements of innovation in auditing technology, especially the application of 4.0 technology in organizing auditing activities; creates conditions for state auditors in the trend and process of international integration.
The revised CMKTNN system is one of the conditions to improve audit quality, contributing to strengthening inspection and control of the management and use of public finance and public assets, building trust and reliability of leaders at all levels, units and the social community towards state audit activities.
According to you, what are the necessary conditions for the newly issued National Economic and Social Security System to soon come into practice?
The early implementation of the newly issued CMKTNN System into auditing practice is one of the top priorities of the Industry in the coming time. In order to implement it comprehensively and effectively, it is necessary to develop a plan and roadmap for applying CMKTNN in a specific and feasible manner.
First of all, it is necessary to raise awareness of the whole industry about the meaning and importance of applying and complying with the National Accounting Standards System. Only then will the application of the National Accounting Standards System into practice be substantial and effective.
Units under the State Audit must identify the application of the State Audit System as a key task that needs to be prioritized, and on that basis proactively develop specific plans for implementation.
To apply the CMKTNN system into practice in a unified and comprehensive manner, training and coaching are required. However, training and coaching work needs to be innovated in both form and method. General training for the whole Industry and training at each affiliated unit; theoretical training combined with practice and hands-on instruction. Along with that, it is necessary to evaluate the results of training and coaching periodically, at the same time, combine specific evaluation through the results of performing professional tasks.
In addition, audited units, agencies of the National Assembly, ministries, branches, localities and the public also need to be more clearly aware of the legal status, role and function of the State Audit in auditing the management and use of public finance and public assets, thereby supporting supervision and enhancing the quality of coordination so that newly issued State Audit Standards can truly come into life, helping the State Audit strengthen its capacity, promote its role and position, and contribute to building an increasingly transparent, healthy and sustainable national financial system.
Thank you very much!
