DECISION

PROMULGATING REGULATIONS ON INSPECTION AND COMPARISON AT REGULATORY BODIES, ORGANIZATIONS AND INDIVIDUALS INVOLVED IN STATE AUDIT

STATE AUDITOR GENERAL

Pursuant to the Law on State Audit dated 24/6/2015 and Law on Amendments to Law on State Audit dated 26/11/2019;

Pursuant to state audit standard system promulgated according to Decision No. 02/2016/QD-KTNN dated 15/7/2016;

Pursuant to state audit procedures promulgated according to Decision No. 02/2020/QD-KTNN dated 16/10/2020;

At the request of Director General of Department of Audit Policy and Quality Control.

HEREBY DECIDES:

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Article 2. This Decision takes effect from the date on which it is signed.

Article 3. Heads of affiliates of State Audit Office of Vietnam, state auditor teams and members of state auditor teams shall implement this Decision./.

STATE AUDITOR GENERAL




Ho Duc Phoc

REGULATIONS

INSPECTION AND COMPARISON AT REGULATORY BODIES, ORGANIZATIONS AND INDIVIDUALS INVOLVED IN STATE AUDIT
(Promulgated together with Decision No. 155/QD-KTNN dated February 18, 2021 by State Auditor General)

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GENERAL PROVISIONS

Article 1. Scope

These regulations provide guidance on procedures for inspection and comparison at regulatory bodies, organizations and individuals involved in state audit.

Article 2. Regulated entities

1. These regulations are applicable to entities affiliated to State Audit Office of Vietnam assigned to organize and conduct audit sessions, auditor teams of State Audit Office of Vietnam (hereinafter referred to as “auditor teams”), members of auditor teams and entities affiliated to State Audit Office of Vietnam assigned to inspect, supervise, ensure quality of audit and audit quality control teams; organizations and individuals trusted or hired to perform audit and state audit partners involved in state audit.

2. Regulations applicable to state auditors also apply to members of auditor teams who are not state auditors.

Article 3. Definitions

1. “inspection and comparison” refers to the perusal and consideration of books, records, information and documents to evaluate and confirm audit contents according to predetermined audit criteria. Inspection and comparison consist of inspection of documents, information, account books and objects belonging or not belonging to the entity subject to inspection and comparison.

2. “regulatory bodies, organizations and individuals involved in state audit” means the regulatory bodies, organizations and individuals determined to be involved in the management and use of public finance and public property of an audited entity during the audit process at the audited entity.

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1. When carry out inspection and comparison, auditor teams and auditor team members must adhere to the Law on State Audit, state audit standard system, state audit procedures, professional audit methods of State Audit Office of Vietnam, Regulations on organization and operation of auditor teams, other regulations of State Audit Office of Vietnam and relevant law provisions; and take responsibility before the law for their inspection and comparison results.

2. Inspection and comparison shall be carried out only after the inspection and comparison plan has been approved by the competent authority and in compliance with the inspection and comparison contents, scope, time and location stated in the approved plan.

Chapter II

INSPECTION AND COMPARISON OBJECTIVES, CONTENTS, PROCEDURES AND METHODS

Article 5. Inspection and comparison objectives

1. The general objective of inspection and comparison is to collect sufficient and suitable evidence for state auditors to provide audit opinions, evaluation, confirmation, conclusions and propositions as appropriate.

2. Specific objectives of inspection and comparison shall be set for each entity selected for inspection and comparison and based on the objectives of the audit at the entity as well as document analysis and evidence assessment concerning selected audit contents by state auditors, with a focus on the following:

- Collect additional evidence to evaluate the accuracy and soundness of some financial documents and data (e.g., when performing a financial audit at en enterprise, state auditors deem a large loan or debt collectible or payable to be inaccurate and require inspection and comparison for clarification; in this case, the inspection and comparison objective is to collect additional evidence to evaluate the accuracy of the loan or debt; or, when a general audit of budget expenditure is performed at the Department of Finance, the objective of inspection and comparison with state budget users is to evaluate the soundness of financial information consolidated in the expenditure report, etc.).

- Collect evidence to evaluate efficiency of management procedures (e.g., the objective of comparison of data reported by tax payers in an audit at a tax authority or customs authority is to evaluate the efficiency of budget revenue management procedures of the tax authority or customs authority and compliance with tax regulations of tax payers, etc.).

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Article 6. Inspection and comparison locations and participants

1. Inspection and comparison may be carried out on the premises of State Audit Office of Vietnam (including the premises of State Audit Office of Vietnam and regional state audit offices); premises of audited entities; and premises of relevant regulatory bodies, organizations and individuals subject to inspection and comparison (hereinafter referred to as “entities subject to inspection and comparison”).

2. The inspection and comparison location shall be specified in the inspection and comparison plan formulated and proposed to the auditor team leader by the auditor group leader for approval. The auditor team leader has the power to approve the proposed location and shall report to the chief auditor or head of the entity assigned with audit tasks (hereinafter referred to as “chief auditor”) and leader of State Audit Office of Vietnam before implementation.

3. Inspection and comparison may be carried out on the premises of an entity subject to inspection and comparison only where necessary (e.g., the entity is located far away from the audited entity, or the inspection and comparison are complicated due to professional reasons, or site examination is required, etc.), which must be approved by the auditor team leader and reported to the chief auditor and leader of State Audit Office of Vietnam in advance.

4. If on-going inspection and comparison need to be relocated, the auditor group leader must prepare and submit a proposal to the auditor team leader; the auditor team leader has the power to approve the proposal and shall report to the chief auditor and leader of State Audit Office of Vietnam.

5. Inspection and comparison participants shall consist of at least 02 auditor group members (including at least 01 auditor) for State Audit Office of Vietnam. Comparison of data reported by tax payers shall be joined by representatives of the tax authority and/or customs authority.

Article 7. Inspection and comparison contents

1. If entities and contents subject to inspection and comparison are already determined in the general audit plan, auditor groups shall carry out inspection and comparison according to the plan approved by leader of State Audit Office of Vietnam.

2. If entities subject to inspection and comparison are selected during the audit process, inspection and comparison contents include:

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Information to compare may be information related to account balance (e.g., debts collectible, debts payable, advance, loans from organizations and individuals; goods in stock at third parties; bank deposits, etc.); contract terms (e.g., payments; goods delivery and receipt; commissioning of completed services and workload, etc.), agreements or transactions between the audited entity and relevant regulatory bodies, organizations and individuals (e.g., funding provision; amounts provided as assistance or given out; property transfer, lending and leasing; information on unit price of materials added to contract package price estimate, invoices and agreements on provision or purchase of construction materials or equipment, etc.); and other relevant matters (e.g., interviews about environmental impact in operational audit; or audit of construction investment projects such as construction price index, exchange rates, etc.).

b) Inspection and comparison in case where, in financial audit or final accounts audit, state auditors deem that it is necessary to collect further audit evidence from important subordinate units, member units and relevant regulatory bodies, organizations and individuals that have significant impact on or potentially create crucial errors in the audited financial statement or final accounts (e.g., (i) when performing general audit of district-level budget, state auditors select some subordinate budget estimate units (district- or commune-level authorities, schools, etc.) having large budget expenditures or budget expenditures considered liable to crucial errors by state auditors and requiring clarification to carry out inspection and comparison; (ii) when performing audit of the consolidated financial statement of a corporation and considering large long-term financial investments liable to crucial errors, state auditors may select some large or poor-performing investments to inspect, compare and collect evidence from joint ventures, associate companies, capital contributors, etc. to obtain additional information and evidence, which serve as the basis for opinions on data on criteria in financial statements of investment recipients consolidated into the financial statement of the corporation).

c) Inspection and comparison of data reported by tax payers for general audit at tax authorities and customs authorities.

Via inspection and comparison of data reported by tax payers, state auditors evaluate responsibility of tax authorities and customs authorities for tax administration (providing guidance, expediting tax collection and enforced debt collection, performing tax inspection according to procedures, etc.), evaluate compliance with tax regulations of tax payers and determine the amount of tax payable to propose fulfillment of obligations to state budget.

Via analysis of documents on assessment of tax administration of tax and customs authorities, state auditors may select one or more than one content that they consider liable to crucial errors (tax declaration, exemption, reduction, refund, debts, etc.) of one or more than one type of tax (VAT, enterprise income tax, natural resource tax, etc.) for inspection and comparison.

Article 8. Inspection and comparison scope

1. If inspection and comparison scope is already determined in the general audit plan, auditor groups shall carry out inspection and comparison according to the plan approved by leader of State Audit Office of Vietnam.

2. If entities subject to inspection and comparison are selected during the audit process, inspection and comparison scope shall be determined as follows:

a) Inspection and comparison scope must support collection of sufficient suitable audit evidence for state auditors to give appropriate audit opinions.

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c) Time period (budget year, accounting period, etc.) of contents to be inspected and compared must be specified.

d) Inspection and comparison scope shall be specified in the inspection and comparison plan proposed to the auditor team leader by the auditor group leader for approval. The auditor team leader has the power to approve the proposed scope and shall report to the chief auditor and leader of State Audit Office of Vietnam before implementation. In case where signs of violation are detected during inspection and comparison and it is necessary to expand the inspection and comparison scope, the auditor group leader shall propose such expansion to the auditor team leader, who will propose it to the chief auditor and leader of State Audit Office of Vietnam for approval before the scope may be expanded.

Article 9. Inspection and comparison methods

1. State auditors shall use professional methods according to regulations of State Audit Office of Vietnam to collect and evaluate evidence via inspection and comparison with regulatory bodies, organizations and individuals involved in audit operations, which will provide the basis for audit opinions, conclusions and propositions.

2. Inspection and comparison methods

Inspection and comparison methods and procedures shall be selected depending on risk assessment or analysis of contents requiring inspection and comparison. Based on risk assessment and audit error determination, state auditors may employ one or more than one method or combine multiple methods. Common methods include:

a) Evidence collection methods per regulations in state audit standard 1500 - Audit evidence in financial audit consist of observation; inspection and comparison; external confirmation; recalculation; investigation; interviewing; analysis procedures; and redoing according to regulations from Section 21 to Section 30 state audit standard 1500 - Audit evidence in financial audit, Section 67 to Section 76 state audit standard 3000 - Guidelines for operational audit, and Section 46 to Section 55 state audit standard 4000 - Guidelines for compliance audit (e.g., when inspecting and comparing data reported by tax payers at an enterprise, state auditors may use (i) analysis procedures to analyze the correlation between revenue, cost price and goods in stock and/or advance payments by buyers with large balance in the financial statement or compare costs of the previous year and current year to identify abnormal fluctuations or inconsistencies and determine whether the enterprise income tax calculated is insufficient due to the enterprise declaring higher costs to reduce profit; (ii) calculation method to check whether information in the VAT declaration, taxable income, input VAT and output VAT payable are adequate and in compliance with the law; (iii) observation method to evaluate procedures for import and export of raw materials for production, etc.).

b) Special audit methods: depending on the nature, characteristics and size of economic operations and activities of entities subject to inspection and comparison, state auditors may employ special audit methods to carry out inspection and comparison such as hiring experts, site monitoring, site inspection, etc. to collect additional evidence, which will provide the basis for opinions of state auditors.

Article 10. Inspection and comparison procedures

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a) Formulate and approve the inspection and comparison plan (according to regulations on formulation of detailed audit plan).

b) Organize the inspection and comparison according to the approved plan; formulate records of confirmation of inspection and comparison data and situation of auditors (hereinafter referred to as “confirmation records”).

c) Formulate an inspection and comparison record.

d) Draw up audit conclusion and proposition notification.

2. If the entities subject to inspection and comparison are selected during the audit process, inspection and comparison procedures are as follows:

a) Analyze documents provided by the audit unit to determine risk of crucial errors or unclear matters and select entities and contents subject to inspection and comparison before formulating and proposing an inspection and comparison plan to the auditor team leader for approval. The auditor team leader has the power to approve the plan and shall report it to the chief auditor and leader of State Audit Office of Vietnam before implementation.

b) Organize the inspection and comparison; formulate confirmation records of auditors.

c) Formulate an inspection and comparison record.

d) Draw up audit conclusion and proposition notification.

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Immediately after the inspection and comparison plan is approved, the chief auditor shall send an official dispatch notifying the plan for inspection and comparison of data reported by tax payers for audit at the tax authority and/or customs authority to the People’s Committee of the province or central-affiliated city or district for cooperation. This official dispatch shall be made using the form in Appendix No. 02.

Article 11. Information analysis and determination of entities subject to inspection and comparison and inspection and comparison objectives and contents

1. Information analysis

a) State auditors shall examine and analyze information being documents provided by the audited entity or collected by State Audit Office of Vietnam outside of the audited entity; collected information may be financial or non-financial. State Audit Office of Vietnam may collect information by requesting the audited entity to provide documents; access information on the management system of the audited entity (such as tax management system (TMS), treasury and budget management information system (TABMIS), etc.), browse mass media, interview the audited entity directly, observe operating procedures of the audited entity, etc.

b) Information and documents requiring examination and analysis depending on audit objectives and contents include:

- For audit at budget revenue authorities (tax and customs authorities): general reports on state budget revenue collection; inspection reports; reports on tax debts, financial reports of enterprises; VAT declarations, enterprise income tax declarations, natural resources tax declarations, fee and charge declarations, fee and charge payment declarations, documents on tax exemption, reduction and refund, etc. and other relevant documents.

- For budget expenditure audit: budget final accounts, consolidated reports on use of funding and settlement of used funding, reports on collection and use of funding for expenditures, etc.

- Data and information requiring inspection, comparison and confirmation may be financial statements; detailed books of accounts; sales agreements, records of property transfer, stocktaking records, records of commissioning of completed load, agreements on provision of materials and equipment; VAT invoices, construction price index, exchange rates, etc.

c) Assessment and determination of risk of crucial errors: state auditors shall analyze information provided by the audited entity to evaluate its reliability, legality and soundness; make general evaluation of possible risk of crucial errors and risk level, including risk due to fraud and risk due to mistakes. Determination and assessment of risk of crucial errors by state auditors shall adhere to regulations in state audit standard 1315 - Determination and assessment of risk of crucial errors via understanding about audited entities and working environment of audited entities.

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Entities and contents subject to inspection and comparison shall be determined based on analysis and assessment of financial information and documents of audited entities. Entities and contents subject to inspection and comparison shall be those deemed liable to crucial errors by state auditors after document analysis or selected for predetermined audit objectives and contents such as:

a) Documents of audited entities that are unclear or insufficient and require inspection and comparison for clarification.

b) Data and information that are inconsistent or contain abnormal contents or show signs of errors.

c) For data reported by tax payers at tax authorities and customs authorities:

- Data of financial statements and documents on tax declaration, exemption, reduction and refund of tax payers that are inconsistent or contain abnormal contents or show signs of errors concerning tax declaration and payment obligations.

- Documents on tax payer inspection by tax authorities that are unclear or show signs of inadequate determination of tax payment obligations.

- Documents of audited entities showing that a tax payer has failed to comply with state regulations on financial management, tax laws and other law provisions.

d) For state budget users, inspection and comparison shall be carried out based on one or more than one basic criterion such as:

- Use of state budget allocated to state budget users for expenditure items regarded as the focus of this year’s audit.

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- Regulatory bodies and organizations that have not been inspected for a long time or have been inspected but still have systematic errors or errors detected in previous audits.

- Other criteria: regulatory bodies and organizations having managed, used or settled state budget against regulations; financial and accounting management apparatus of regulatory bodies and organizations operating part-time or being incomplete; management and control operations of finance authorities being superficial or tardy, etc.

dd) Other contents liable to crucial errors determined by state auditors via audit and document analysis and requiring inspection and comparison for clarification.

3. Cooperation is required for selection of entities subject to inspection and comparison to prevent overlapping with an inspection performed by another authority.

Article 12. Inspection and comparison plan formulation and approval

1. Formulation of inspection and comparison plans by auditor groups

a) If the auditor groups has sufficient grounds to select the entities subject to inspection and comparison at the time of formulation of the detailed audit plan, the inspection and comparison plan may be formulated together with the detailed audit plan of the auditor group using Form No. 02/HSKT-KTNN in Appendix No. 02/HSKT-KTNN promulgated together with Decision No. 01/2020/QD-KTNN dated 26/6/2020 by State Auditor General.

b) If the auditor group has yet to select entities subject to inspection and comparison at the time of formulation of the detailed audit plan:

- Based on analysis of documents of the audited entity, the auditor group leader shall prepare and submit an inspection and comparison plan and proposal therefor to the auditor team leader for approval, who will report them to the supervisory chief auditor and leader of State Audit Office of Vietnam before implementation. Entities and contents subject to inspection and comparison shall be determined as appropriate to audit time, personnel and limits (ensuring sufficient time).

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c) In case of inspection and comparison of all reported data and audit contents according to the audit plan (such as inspection and comparison of district-level budget final accounts, financial statements of affiliates to corporations, financial statements of budget estimate units affiliated to provinces and ministries, etc.), the inspection and comparison plan may be formulated according to the form for the detailed audit plan as appropriate.

2. Inspection and comparison plan approval

a) Auditor team leader has the power to approve the inspection and comparison plan of the auditor group and shall report it to the supervisory chief auditor and leader of State Audit Office of Vietnam before implementation and take responsibility before State Auditor General.

b) The chief auditor may give their opinion directly into the inspection and comparison plan proposal or promulgate a notification of their opinion on the inspection and comparison.

c) For inspection and comparison of data reported by tax payers during audit of local government budget, the chief auditor shall send an official dispatch notifying the plan for inspection and comparison of data reported by tax payers for audit at the tax authority and/or customs authority to the People’s Committee of the province or central-affiliated city or district for cooperation. This official dispatch shall be made using the form in Appendix No. 02.

d) Auditor group leader may carry out inspection and comparison only after receiving the approval of the auditor team leader and chief auditor and must follow the direction of the chief auditor.

3. If an issue arising during inspection and comparison results in change to plan (detecting signs of errors or violations that require expansion of inspection and comparison scope, year, entities, contents, etc.), the auditor group leader shall prepare and submit a proposal specifying the reason for the change and the amended plan to the auditor team leader. The auditor team leader has the power to approve them and shall report them to the supervisory chief auditor and leader of State Audit Office of Vietnam before implementation.

The chief auditor shall send an official dispatch notifying the amended plan to the People’s Committee of the province or central-affiliated city or district (for inspection and comparison of data reported by tax payers for audit of local government budget) for cooperation using the form in Appendix No. 02.

4. The amended inspection and comparison plan (if any) must be sent to the specialized (regional) audit quality control team and Department of Audit Policy and Quality Control for control purpose as per the law.

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1. Collection of documents for inspection and comparison

According to the approved plan, the auditor group shall request the entities subject to inspection and comparison to provide documents and information related to inspection and comparison contents. This request must be made in writing and specify document name and time and location of provision and an audit dossier shall be prepared according to regulations of State Audit Office of Vietnam.

2. Inspection and comparison carried out by state auditors as assigned

a) State auditors shall employ audit methods and audit evidence collection methods and procedures to inspect and compare each content and collect and evaluate audit evidence. Evidence collection methods commonly used in inspection and comparison are provided for in Article 9 herein.

b) State auditors may choose one or more than one suitable audit method or procedure to inspect and compare specific contents. During inspection and comparison, state auditors must employ audit methods and procedures, knowledge, professional judgments and documents as per the law to inspect and compare assigned contents in an efficient and time-saving manner.

c) Evidence collection and assessment during inspection and comparison shall adhere to regulations in state audit standard 1500 - Audit evidence in financial audit, from Section 55 to Section 84 of state audit standard 3000 - Guidelines for operational audit and from Section 43 to Section 61 of state audit standard 4000 - Guidelines for compliance audit.

d) During inspection and comparison, if detecting signs of a grave error, error showing signs of crime or case showing signs of corruption or wastefulness; state auditors and/or auditor group leader shall promptly report to the auditor team leader and/or chief auditor; auditor team leader and/or chief auditor shall promptly report to State Auditor General for directions for clarification and handling; concurrently, request the audited entity to explain the issue detected according to directions of the auditor team leader, chief auditor and State Auditor General. Cases showing signs of corruption shall be audited, verified and clarified according to procedures for audit of cases showing signs of corruption of State Audit Office of Vietnam.

e) During inspection and comparison, if it is necessary to access the national database system and electronic data of regulatory bodies, organizations and individuals involved in audit operations for collection of information and documents directly related to audit contents and scope, state auditors shall report to the auditor group leader, who will report to the auditor team leader. Access shall be granted with the written authorization of the auditor team leader. Regulatory bodies, organizations and individuals involved in audit operations shall supervise the scope of such access and such access shall comply with the law and regulations of law on confidentiality, security and safety.

g) Inspection and comparison of data reported by tax payers during general audit at tax and customs authorities must have the participation of representatives of tax and customs authorities whose responsibilities are related to the audit to jointly request tax payers to provide documents or explain matters related to inspection and comparison contents together with tax payers.

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i) In case it is necessary to hire assessment experts and consultants, comply with Regulations on employment of audit partners of State Audit Office of Vietnam and state audit standard 1620 - Employment of experts in financial audit.

k) Review of inspection and comparison results by state auditors: before consolidating inspection and comparison results, state auditors shall review all results produced and validity, soundness, lawfulness, suitability and adequacy of audit evidence in a comprehensive manner; evaluate amount of work completed compared to plan and inspection and comparison load; carry out additional audit procedures where necessary, collect additional audit evidence and systemize collected audit evidence.

3. Review of inspection and comparison tasks performed by state auditors by auditor group leaders

a) Auditor group leader shall review contents which state auditors have difficulties with and contents with signs of violations or fraudulence on a daily basis based on the audit record or daily work report or exchange. Examine audit evidence collected by state auditors, inspection and comparison results and opinions of state auditors; evaluate amount of work completed by state auditors; request state auditors to include additional inspection and comparison procedures and contents and collect additional audit evidence if necessary. In case fraudulence is detected, the auditor group leader must give directions to clarify responsibilities of individuals allowing the fraud in the audited entity and regulatory bodies, organizations and individuals involved in audit operations and conform to state audit standard 1240 - Responsibilities of state auditors relating to fraudulence in financial audit, Section 56 to Section 57 of state audit standard 4000 - Guidelines for compliance audit and other relevant regulations.

b) State auditors shall follow directions and conclusions of the auditor group leader. Any state auditor who does not agree with the conclusions of their auditor group leader may have their opinion recorded according to Regulations on organization and operation of state auditor teams.

4. Signing of confirmation records by state auditors

a) Upon end of inspection and comparison, state auditors shall formulate and compare confirmation records with relevant units. If additional evidence is required, state auditors shall continue to carry out inspection, comparison and audit evidence collection procedures based on directions given by the auditor group leader to ensure the suitability, adequacy and soundness of audit evidence and inspection and comparison results.

b) Consolidate inspection and comparison results, exchange and receive explanations of entities subject to inspection and comparison; reinforce evidence; formulate and submit draft confirmation record to the auditor group leader for consideration before finalization and signing of the record with persons whose responsibilities are related to inspection and comparison.

In case persons whose responsibilities are related to inspection and comparison do not agree with the results, evaluation or confirmation presented by state auditors, state auditors shall request these persons to specify their opinions in the confirmation record, countersign and provide a written official explanation, which will be reported to the auditor group leader for consideration.

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5. In case the entity subject to inspection and comparison refuses to cooperate or provide documents or provide sufficient documents for inspection and comparison, the auditor group leader shall promptly report to the auditor team leader and chief auditor for timely handling. Propose actions to be taken against this entity to competent authorities as per the law based on the reason determined prior to inspection and comparison, severity of sign of violation and applicable regulations of law.

Article 14. Formulation of inspection and comparison records

1. Inspection and comparison record shall provide the basis for formulation of the audit record of the auditor group, audit report of the auditor team and audit conclusion and proposition notification of the auditor team.

2. Inspection and comparison record shall be formulated at the audited entity or entities subject to inspection and comparison immediately upon end of inspection and comparison and before formulation of the audit record of the auditor group and audit report of the auditor team.

Upon end of inspection and comparison, the auditor group leader shall consolidate inspection and comparison results in confirmation records and relevant audit evidence to formulate draft inspection and comparison record at the entity subject to inspection and comparison. In case any state auditor in the auditor group does not agree with the conclusion of the auditor group leader, this state auditor may have their opinion recorded according to Regulations on organization and operation of state auditor teams.

3. The auditor group leader shall formulate the inspection and comparison record of their group or assign a state auditor involved in inspection and comparison to assist them with the formulation but the auditor group leader must review, control and sign the record for promulgation and take responsibility before the law for the contents and results written in the record.

4. Inspection and comparison record shall include sufficient inspection and comparison contents and results and be made according to guidelines in audit forms and schedules. Record of comparison of data reported by tax payers shall confirm data, specify reason for data discrepancy (if any), fulfillment of obligations concerning state budget revenue collection for each inspection and comparison content, assessment of inspected and compared contents and reason for data discrepancy.

5. Inspection and comparison of data reported by tax payers must be confirmed by representatives of tax and customs authorities, namely heads of tax and customs authorities or persons who are assigned to cooperate with the auditor team or auditor group in inspection and comparison by heads of tax and customs authorities and hold the post of deputy division head or higher of Department of Taxation or Customs Department; or deputy head or higher of Sub-department of Taxation or Customs Sub-department. If a person assigned to cooperate cannot participate directly in inspection and comparison and assign another person as replacement, they must sign the inspection and comparison record and take responsibility for inspection and comparison results. The person sent as replacement shall initial the record.

6. Inspection and comparison record shall be formulated using the form in Appendix No. 06; record of comparison of data reported by tax payers shall be formulated using the form in Appendix No. 05; record of inspection and comparison of all reported data may be formulated following the form of audit record for the appropriate field to ensure sufficient contents and consistency with promulgated forms and schedules; these records shall be managed and retained in audit dossiers according to regulations on list of audit documents and submission, retention, preservation, use and disposal of audit documents of State Audit Office of Vietnam.

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1. Responsibility for formulation of audit conclusion and proposition notifications

The auditor group leader shall formulate an official audit conclusion and proposition notification to be sent to relevant regulatory bodies, organizations and individuals (including for comparison of data reported by tax payers at tax and customs authorities) according to approved plan for conclusions and propositions concerning these entities. After the audit report of the auditor team has been signed and promulgated, the auditor group leader shall complete the audit conclusion and proposition notification (using official data) based on the promulgated audit report of the auditor team and official dispatch sent to State Treasury and submit it to the auditor team leader for opinions before proposing it to the chief auditor for signing and promulgation and together with the audit report of the auditor team.

2. The audit conclusion and proposition notification shall be formulated using the form in Appendix No. 07.

3. The audit conclusion and proposition notification shall be managed and retained in audit dossiers according to regulations on list of audit documents and submission, retention, preservation, use and disposal of audit documents of State Audit Office of Vietnam.

Article 16. Responsibilities for inspection and comparison

1. Responsibility of state auditors assigned to perform inspection and comparison

a) State auditors shall follow the approved inspection and comparison plan in terms of inspection and comparison contents, scope, limits and location; properly comply with Regulations on organization and operation of state auditor teams, regulations on audit quality control and other regulations on responsibilities of state auditors promulgated by State Audit Office of Vietnam; record in work journals of state auditors, prepare audit documents and meet information and reporting requirements of State Audit Office of Vietnam.

b) Collect sufficient suitable audit evidence related to errors of entities subject to inspection and comparison; collect evidence related to assessments of the auditor group in the inspection and comparison record.

c) Members of the auditor group carrying out inspection and comparison must formulate confirmation records for tasks assigned using the form in Appendix No. 04; participate in the formulation of the inspection and comparison record of their auditor group as assigned by the group leader; take responsibility for their results and assessments in their confirmation records. In case the auditor group is divided into smaller groups, the auditor group leader and state auditors in charge of smaller groups shall sign inspection and comparison records with the entities subject to inspection and comparison.

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a) Formulate and propose an inspection and comparison plan to the auditor team leader

b) Organize the inspection and comparison according to the contents, scope, limits and methods stated in the approved inspection and comparison plan; properly follow Regulations on organization and operation of state auditor teams, regulations on audit quality control and other regulations on responsibilities of auditor group leaders promulgated by State Audit Office of Vietnam.

c) Check and review collection of sufficient suitable audit evidence related to errors of entities subject to inspection and comparison by state auditors assigned for inspection and comparison.

d) Formulate and sign inspection and comparison records and formulate audit conclusion and proposition notifications; take responsibility for results and assessments concerning inspection and comparison of their auditor groups.

3. Responsibilities of auditor team leaders in inspection and comparison

a) Responsibilities for approving inspection and comparison plans

- Auditor team leaders shall examine, review and approve inspection and comparison plans of auditor teams; and send approved plans to relevant units as per regulations.

- Direct auditor teams to receive appraising opinions of audit quality control teams concerning inspection and comparison plans; report inspection and comparison plans to the chief auditor and leader of State Auditor Office of Vietnam.

- Responsibilities for tax inspection and comparison:

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+ Advise chief auditors on signing of official dispatches sending plans for inspection and comparison of data reported by tax payers to People’s Committees of provinces and central-affiliated cities (or People’s Committees of districts) for audit of local government budget, which provide the basis for these People’s Committees to direct tax and customs authorities to send notifications to entities subject to inspection and comparison and assign officials to cooperate (official dispatches shall be made using the form in Appendix No. 02).

b) Responsibilities for giving directions for inspection and comparison

- Inspect and control the whole inspection and comparison process of auditor teams at entities subject to inspection and comparison.

- Direct auditor teams to collect sufficient evidence related to data, assessments and errors of entities subject to inspection and comparison mentioned in inspection and comparison records.

- Review, inspect and take responsibility for audit contents and propositions in audit conclusion and proposition notifications.

- Take joint responsibility for violations against the law in inspection and comparison operations of auditor teams at entities subject to inspection and comparison.

4. Responsibilities of chief auditors for inspection and comparison

a) Responsibilities for giving directions

- Give directions for, organize and inspect inspection and comparison according to regulations of the Law on State Audit and relevant guiding documents in a comprehensive manner. Inspection and comparison shall be carried out with the objectives, contents, scope and limits stated in approved inspection and comparison plans and in compliance with directions given by State Auditor General and supervisory leader of State Audit Office of Vietnam. Direct auditor teams to formulate inspection and comparison plans with correct entities and quantity and ensure quality. Take joint responsibility for law violations committed by state auditors, auditor groups and auditor team leaders during inspection and comparison.

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- Sign (or authorize signing) and promulgate audit conclusion and proposition notifications according to regulations of State Auditor General.

b) Responsibilities for inspecting and controlling inspection and comparison operations

Chief auditors shall inspect and control inspection and comparison operations in a manner similar to inspection and control of audit operations according to Regulations on organization and operation of state auditor teams and Regulations on audit quality control of State Audit Office of Vietnam.

5. Responsibilities of advisory units (Department of General Affairs, Department of Audit Policy and Quality Control, Department of Legal Affairs and State Audit Inspectorate)

Responsibilities of Department of General Affairs, Department of Audit Policy and Quality Control, Department of Legal Affairs and State Audit Inspectorate for inspection and comparison operations are provided for in documents of State Audit Office of Vietnam.

Chapter III

IMPLEMENTATION CLAUSE

Article 17. Implementing responsibilities

1. Heads of entities affiliated to State Audit Office of Vietnam, state auditor teams and members of state auditor teams carrying out inspection and comparison of entities involved in state audit shall implement this Decision.

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