1. Accounting units shall have their accounting works inspected by competent authorities. Accounting inspection shall only be carried out under a decision of a competent authority as prescribed by law, except for the authorities specified in Point b Clause 3 of this Article.
2. The authorities that are competent to decide accounting inspection include:
a) The Ministry of Finance;
b) Other Ministries, ministerial agencies, Governmental agencies, other central agencies shall decide accounting inspection of accounting units under their management;
c) The People’s Committees of provinces shall decide accounting inspection of accounting units in their provinces;
d) Superior units shall decide accounting inspection of affiliated units.
3. The authorities that are competent to carry out accounting inspection include:
a) The authorities specified in Clause 2 of this Article;
b) State inspection agencies, finance inspection agency, State Audit Agency, tax authorities during inspection and audit of accounting units.
(Article 34 - Enterprise Law 2015)
Contents of accounting inspection
1. An accounting inspection consists of:
a) Inspection of performance of accounting works;
b) Inspection of the accounting apparatus and accountants;
c) Inspection of the organization structure and provision of accounting services;
d) Inspection of the adherence to other regulations of law on accounting.
2. The accounting inspection content must be specified in the decision on accounting inspection, except for the case in Point b Clause 3 Article 34 of this Law.
(Article 35 - Enterprise Law 2015)
Duration for accounting inspection
The Duration of an accounting inspection is decided by the authority competent to carry out the accounting inspection but not exceeding 10 days, excluding days off and public holidays defined by the Labor Code. If the inspection content is complicated and thus requires more time to evaluate and draw a conclusion, the inspecting authority may extend the duration for up to 05 days, excluding days off and public holidays defined by the Labor Code.
(Article 36 - Enterprise Law 2015)
Rights and obligations of accounting inspectorates
1. During an accounting inspection, the inspectorate must announce the decision on accounting inspection, except for the inspectorates and audit commissions specified in Point b Clause 3 Article 34 of this Law. The accounting inspectorate is entitled to request the accounting unit to provide accounting documents related to the accounting inspection content and explanation where necessary.
2. At the end of the inspection, the inspectorate shall make an inspection record and gives one copy to the inspected unit; Any violations against regulations of law on accounting shall, if they are within the competence of the inspectorate, be dealt with or, if they are beyond the competence of the inspectorate, transferred to a competent authority as prescribed by law.
3. The chief of the inspectorate is responsible for the inspection conclusion.
4. The inspectorate shall comply with the procedures, contents, scope, and duration of inspection, not affect the normal operation of the accounting unit, and not harass the accounting unit.
(Article 37 - Enterprise Law 2015)
Rights and obligations of inspected accounting units
1. The inspected accounting unit has the obligations to:
a) Provide the inspectorate with accounting documents related to the accounting inspection content and explanation at the request of the inspectorate;
b) Comply with the conclusion given by the inspectorate.
2. The inspected accounting unit has the rights to:
a) Refuse the inspection if it is suspected to be beyond the competence of the inspectorate as prescribed in Clause 2 and Clause 3 Article 34, or the inspection contents are not conformable with Article 35 of this Law;
b) File complaints to a competent authority if the conclusion given by the inspectorate is not concurred with.
(Article 38 - Enterprise Law 2015)
Internal control and internal audit
1. Internal control means establishment and implementation of internal mechanism, policies, procedures, and regulations conformable with law meant to prevent, discover, and deal with the risks and meet the set requirements.
2. Each accounting unit must establish an internal control system to meet the following requirements:
a) Its assets are protected from improper and inefficient use;
b) The transactions are approved intra vires and fully recorded as the basis for making and presenting truthful and reasonable financial statements.
3. Internal audit means inspection, assessment, and supervision of the completeness, appropriateness, and effectiveness of internal control.
4. Objectives of internal audit:
a) Inspect the compatibility, effectiveness, and efficiency of the internal control system;
b) Inspect and certify the quality, reliability of economic and financial information of the financial statement and administrative-accounting report before they are submitted;
c) Inspect the adherence to the rules for operation, management, observance of law, regulations on finance, accounting, policies, resolutions, and decisions of the heads of the accounting unit;
d) Discover weaknesses in the management system; propose solutions for improvement of the management system of the accounting unit.
5. The Government shall regulate internal audit of enterprises, regulatory agencies, and public service agencies.
(Article 39 - Enterprise Law 2015)
Beside ensuring the compliance with legal requirements, enterprises should build up an effective and efficient internal inspection mechanism for the enterprises’ benefits