The Government issued Decree 05/2019/ND-CP on Internal Audit, with the following key points:
The following entities are required to conduct internal audit: state agencies, public service units, enterprises, and organizations subject to internal audit requirements. Among enterprises, the following are specifically mandated:
Listed companies;
- Enterprises in which the State holds more than 50% of charter capital, structured as a parent company–subsidiary model;
- State-owned parent companies operating under a parent company subsidiary model.
- Other enterprises are encouraged to voluntarily implement internal audit.
Enterprises may hire an eligible independent audit firm to provide internal audit services; however, they must ensure compliance with fundamental principles and requirements as defined for internal audit.
Decree 05/2019/ND-CP took effect on April 1, 2019. Within 24 months from the effective date, entities subject to internal audit requirements must complete all necessary preparations to implement internal audit according to the provisions of this decree.
The decree covers a range of topics, including:
- Definitions of terms used in the decree;
- Objectives of internal audit;
- Fundamental principles and compliance requirements for internal audit;
- Professional ethics for internal auditors;
- Internal audit for state agencies, public service units, and enterprises;
- Qualifications of internal audit personnel;
- Internal audit regulations and procedures;
- Methods for conducting internal audit;
- Annual internal audit plans and execution;
- Audit reports and ad hoc/expert consultation reports;
- Archiving of internal audit documents and records;
- Quality assurance for internal audit activities;
- Duties, responsibilities, and authority of the internal audit department, internal auditors, and internal audit leadership;
- Responsibilities of internal parties and state management for internal audit.
For full details, please refer here.
