Requirements for Internal Audits

Accordingly, Decree 05 has specifically listed the requirements to ensure compliance with the basic principles of internal auditing, including:

- Internal auditors must maintain an impartial, objective, and unbiased attitude. Internal auditors have the right and obligation to report any issues that may affect their independence and objectivity related to the assigned internal audit work.

- Internal auditors must ensure independence and objectivity. In cases where independence or objectivity is or may be compromised, internal auditors must report to direct management or to the competent authorities.

- In the internal audit work, the entity must implement the following regulations to ensure independence and objectivity, prevent unfairness, prejudice, and conflicts of interest:

- Internal auditors must not perform audits on internal regulations, policies, procedures, and processes for which they are primarily responsible for developing;

- Internal auditors must have no conflicts of rights and economic interests with the audited entity or department; internal auditors must not audit entities or departments managed by individuals related to them;

- Internal auditors must not participate in auditing activities or departments they were responsible for within 3 years from the decision to cease these activities or management;

- The entity must have measures to ensure the independence and objectivity of internal audit work during the audit process within the entity or department being audited and in the audit report preparation and submission stages;

- The scope, cycle, and method of auditing, and the audit process must ensure that the audit results accurately reflect the actual state of the audited contents;

- Audit notations in internal audit reports must be carefully analyzed and based on collected data and information to ensure objectivity.

See details at Decree 05/2019/ND-CP, effective from April 01, 2019.

- Thao Uyen -

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