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GOVERNMENT SOCIALIST REPUBLIC Of VIETNAM
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No. 61/TTg html*html
Hanoi, January 24, 1995
- Pursuant to Decree No. 70/CP dated July 11, 1994 of the Government on the establishment of State Auditing organizations;
- On the proposal of the General State Auditor and the Minister-Head of the Department of Governmental Organization and Personnel;
DECIDES
Article 1.
To issue hereby in connection with this Decision the Regulation on organization and operation of the State Auditing System.
Article 2.
The General State Auditor shall undertake the responsibility to organize the implementation of this Regulation.
Article 3.
This Decision shall go into effect from the signing date. The General State Auditor, Ministers, Heads of Ministerial ranking bodies, Heads of offices belonging to the Government, Chairmen of People's Committees of provinces and cities under Central author ity, shall be responsible for the implementation of this Decision.
The Prime Minister of Government
VO VAN KIET
(Signed)
GOVERNMENT SOCIALIST REPUBLIC Of VIETNAM
--- Independence-freedom-Happiness
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Article 1.
The State Auditing System shall assist the Prime Minister of Government in conducting the inspection and ratification on the rightful and legal status of the accounting documents and data, the financial reports of the State offices, professional instituti ons, State owned economic units and social, mass organizations which are funded by the State budget.
Article 2.
The State Auditing System shall conduct audits on accounting documents and data, reports on budget balances of provinces and cities under central authority before these documents are presented to the People's Committees and the general report of the Gover nment on the State budget balance before it is presented to the National Assembly; the financial reports of Ministries and Ministerial ranking bodies, offices belonging to the Government, bodies belonging to the National Assembly, the People's Court, the People's Organ of Control, professional institutions, mass associations, social organizations funded by the State budget, the financial reports of programs, projects invested in by the State and State-owned enterprises... in accordance with the annual aud iting plan approved by the Prime Minister of Government and the unusual undertakings assigned by the Prime Minister or requested by an authoritative State body.
Article 3.
When conducting its task, a State Auditing establishment shall only comply with the State's laws on auditing (including stipulations on professional methods), Decree No. 70/CP dated July 11, 1994 of the Government on the establishment of the State Auditin g Offices, and this Regulation in order to assure that the audits are precise, objective and honest.
Chapter II Tasks and Power of the State Auditing System
Article 4.
The State Auditing System has the following tasks:
1. To work out the annual auditing program and plan, and to submit these documents to the Prime Minister of Government for approval. In the plan, the objects, aims and contents of the audits should be made clear.
2. To conduct the auditing program and plan approved by the Prime Minister and the unusual auditing tasks assigned by the Prime Minister or requested by authoritative State bodies; to report the auditing results to the Prime Minister of Government and to provide auditing results for other State offices in accordance with the stipulations of the Government; to make periodical reports on the implementation of auditing programs and plans to the Prime Minister of Government.
3. To make remarks, assessments, ratification on the compliance of financial and accounting policies and regulations, and on the accuracy, honesty and legality of the accounting documents and data, the financial reports which have been audited, and to bea r responsibility before laws for the contents of the remarks, assessments and ratifications.
4. Through auditing, to recommend audited units to correct mistakes and violations so as to readjust the accounting and financial management of those units. To make recommendations to competent levels for dealing with violations of State financial and acc ounting regulations; to make proposals to the Prime Minister of Government on the necessary amendments and improvements of the mechanism for financial and accounting management.
5. To submit opinions and suggestions to the Ministry of finance on the drafting and issue of regulations, standards and methods of auditing.
6. To maintain control over audited files and documents in accordance with stipulations of the State; to keep secret all the accounting documents and data as well as the operations of the audited units consistent with State stipulations.
7. To manage organizational machinery, personnel and material facilities of the State Auditing System in accordance with general Government stipulations. To provide training and professional improvement for auditing officials.
Article 5.
When carrying out its task, the State Auditing System has the following rights and responsibilities :
1. To observe only State laws and the professional methods stipulated by the State.
2. To have the right to request those units being audited to submit financial reports and to provide necessary information and documents for conducting auditing tasks.
3. To have a right to request any State establishment, mass association, social organization or citizen to assist and create favorable conditions for the State Auditing System to carry out its tasks.
4. To have the right to request any competent offices to conduct professional appraisals or to offer consultation when necessary.
5. To have the right to request competent levels bodies to take measures, in accordance with State laws, against any organizations or individuals having acts which obstruct the auditing activities of a State Auditing unit, or providing wrong information a nd false documents for a State Auditing unit.
6. To make recommendations to a competent level to take measures against any organizations and individuals violating financial accounting regulations of the State.
7. To provide auditing files and documents upon request (in writing) from any competent legal body.
Those competent levels mentioned in point 5 and point 6 above shall have the obligation to inform the concerned auditing units of the results of their settlements as soon as possible after they receive requests and recommendations from a State auditing un it.
8. When necessary, a State Auditing unit can hire an independent auditor or auditing organizations to conduct an audit, but the State Auditing unit has to bear responsibility for the accuracy of the data, documents and the conclusions made by independent auditors or auditing organizations.
9. To bear responsibility before State laws, for the violations committed by auditors or auditing organizations when performing their auditing tasks and for the bad consequences stemming from the mistakes made by auditors or auditing organizations over au dited objects.
Chapter III Organizational structure of State Auditing System
Article 6.
The organizational machinery assisting the General State Auditor to perform his assignment consists of:
1. Department for Auditing State Budget.
2. Department for Auditing basic construction and Governmental programs, projects, loans and assistance.
3. Department for Auditing State-owned enterprises.
4. Department for Auditing special programs (those of national security, defense, reserves etc...)
5. Bureau of State Auditing.
The specialized auditing organizations from point 1 to point 4 and the Bureau of State Auditing have a position of departmental equivalence.
During its course of operations, in some key regions and areas, if the General State Auditor finds it necessary, he can discuss and reach agreement with the Minister-Head of the Department of Governmental Organization and Personnel to propose the Prime Mi nister of Government to decide on the establishment of regional State Auditing Offices under the authority of the State Auditing System.
Article 7.
The Head of State Auditing Systems is the General State Auditor. The General State Auditor has some Deputy General State Auditors who help the General State Auditor in controlling each field of the State Auditing work. The General Auditor and Deputy Gener al Auditors are appointed and dismissed by the Prime Minister of Government.
The General State Auditor undertakes responsibility before the Prime Minister of Government for all State Auditing activities. The Deputy General State Auditors bears responsibility before the General State Auditor for their assigned duties.
Article 8.
The branch auditing organizations belonging to the State Auditing System will help the General State Auditor in performing such functions as to audit the accounting data and documents as well as financial reports of objects within their own branches. Head s of each branch auditing organization is the Auditing chief (Department Director level).
Each auditing Chief has some Deputy Auditors (Vice-Director level) the Auditing Chiefs and Deputy Auditors are appointed or dismissed by the General State Auditor.
Article 10.
The specific functions, duties and organizational machinery of the branch auditing organizations and the bureau of the State Auditing System will be stipulated by the General State Auditor.
Article 11.
the operational costs of the State Auditing System are covered by the State budget. The salary roll of the State Auditing System is one of the salary rolls under State management. The General State Auditor shall work out and submit his proposal on salary rolls and operational costs of the State Auditing system for approval by the Prime Minister of Government.
Chapter IV Auditing Council
Article 12.
When necessary, the State Auditing System is allowed to form and Auditing Council which shall provide consultations for the General State Auditor in appraising important and complex auditing reports or in re-appraising complained about auditing reports.
The General State Auditor shall decide on the establishment of a State Auditing Council, its members, and on the operational regulations of the Council. In case of necessity, the General State Auditor can invite experts outside the State Auditing System t o participate in the council.
when appraisal comes to an end, the General State Auditor shall disband that Auditing Council.
Article 13.
The Council shall work on the principle of collective discussion and majority vote, the minority view shall be noted and delivered to the General State Auditor. All the ideas of the Auditing Council's members must be recorded in documents of the Council a nd all documents relating to the appraisals by the Council must be managed in accordance with State stipulations.
Article 14.
for those audited objects relating to national secrecy and security, the General State Auditor has to conduct himself auditing work and appoint members of the Auditing Council.
Chapter V State Auditors and Collaborators
Article 15.
State auditors are State employees assigned to perform auditing duties in accordance with legal stipulations.
While conducting their auditing duties, the State auditors have only to comply with the laws and the professional methods stipulated by the State and they have to personally undertake responsibility before the laws for their remarks, conclusions and recom mendations.
when performing their duties, the State auditors have to wear their own badges and present their auditor cards as stipulated by the Prime Minister of Government.
Article 16.
A State auditor shall have the following rights:
1. when performing his/her duty, the auditor enjoys those rights stipulated in points 1, 2, 3, 4, 6 Article 5 of this Regulation.
2. To ask the General State Auditor to make recommendations to competent levels to suspend those activities which, the auditor fees, are or will cause damage to national property or pose obstacles to the auditing work of the State Auditing System.
3. To enjoy the favorable treatment and incentives in accordance with assignments, as stipulated by the Government.
Article 17.
In case of necessity, the State Auditing System can use collaborators, independent auditors or auditing organizations, Vietnamese or foreign experts, in the forms of contract or hiring.
Chapter VI Auditing Proceedings
Article 18.
Any decision to conduct an audit must be based on the following factors:
- The annual auditing program and plan approved by the Prime Minister of Government.
- The unusual auditing tasks assigned by the Prime Minister of Government, or requested by competent State offices, but these tasks must be within the auditing responsibility of the State Auditing System.
Article 19.
The General State Auditor shall make decisions on auditing.
Any decision on auditing has to make clear the content, scope, object, auditing duration, and the auditing group or auditor that will perform the task. In the course of auditing, if the General State Auditor finds it necessary to make addition to the cont ent of the audit, to extend the auditing duration, to replace the chief or any member of the auditing group or to suspend the audit, he has to make decisions (in writing) on them. Those decisions must be, at the same time, sent to the audited objects.
Article 20.
Each audit must be conducted in conformity with the following steps:
- To make preparations
- To carry out the auditing
- to conclude and make the auditing report
Any auditing group or auditor assigned to conduct the audit has to comply with the proceedings, steps, principles, auditing standards and professional methods according to the existing laws of the State.
Article 21.
During the auditing, the General Auditor has to constantly direct and timely resolve any proposals of the auditing group or the auditor, to observe the implementation of conclusions and recommendations made by the auditing group or by the auditor.
Article 22.
When conducting an audit, the auditing group or auditor shall have the following duties and powers:
- To undertake responsibility to organize and direct all members of the group in performing the duties written in auditing decisions.
- Not allowed to create obstacles or to intervene in activities, so as to assure normal operations of the audited units.
- When performing their duties, they are allowed to exercise their powers in accordance with Article 16 of this Regulation.
- When completing the audit, the auditing group or the auditor has to make an audit report with remarks, conclusions and recommendations on the already audited contents and to bear responsibility for their conclusions, remarks and recommendations
Chief of the auditing group, or the auditor, has to sign the auditing report. The General State Auditor, or his authorized subordinate, has to sign, seal and ratify the auditing report before it is made public to the audited unit.
Article 23.
All auditors in the auditing group have to share responsibility with the chief of the group for conducting the assignment. If any member of the auditing group has a different view from the conclusion drawn by the chief of the group, that individual view shall be reserved and reported to the General State Auditor for decision.
Article 24.
When receiving conclusions and recommendations from the auditors' chief or the auditor, the General State Auditor has to consider and solve in accordance with his authority and if it is beyond his authority, the General State Auditor has to report to the Prime Minister of Government.
Chapter VII Reward and Punishment
Article 25.
Any auditing organization, auditor or auditing collaborator making achievements in performing auditing duties shall be rewarded in accordance with State stipulations.
The General State Auditor shall submit proposals to the Prime Minister of Government for rewarding those State auditing organizations, auditors or collaborators scoring achievements in auditing activities.
Article 26.
Any auditor committing violations of laws or regulations on auditing, or abusing the position and powers of a State auditor for the sake of individual interests and motives, thus violating the legal rights and interests of other offices, organizations or individuals, shall, depending on the seriousness of the violation, be subject to administrative punishment as prescribed by related stipulations. If the violation has serious consequences, he can be subject to criminal prosecution.
Any organization or individual obstructing an auditor from performing his duty or acting in complicity with an auditor in violating stipulations of laws and regulations on auditing, shall depending on the character and seriousness of the violation, be sub ject to administrative punishment or criminal prosecution, as stipulated by law.
Chapter VIII final Provision
Article 27.
This Regulation shall come into effect from the issuing date. The General State Audition undertakes the responsibility to organize the implementation of this Regulation.
for the Prime Minister
VO VAN KIET
(Signed)