Decree 05/2019/nđ-cp on internal audit

Decree 05/2019/NĐ-CP date 22.01.2019 on Internal Audit

Thuy Phan
4/10/2020
Decree 05/2019/nđ-cp on internal audit

The Government has promulgated the Decree No. 05/2019/ND-CP on internal audits with the main point as follows:

Units subject to internal audit requirements as followings: the State regulatory authorities, the State-owned public service units and Enterprises.
In which, enterprises that have to perform the internal audit shall include the followings:

  • Listed companies;
  • Enterprises with 50% of their charter capital held by the State, which are parent companies operating in a parent - subsidiary business model;
  • State enterprises which are parent companies operating in a parent - subsidiary business model.
    Other enterprises not covered above shall be encouraged to perform the internal audit.

Enterprises may hire independent audit bodies legally accredited to render their audit services. However, basic internal audit principles and Requirements for assuring compliance with fundamental principles of internal audit must be observed.

The Decree No. 05/2019/ND-CP effected on April 01, 2019. Within duration of 24 months from the entry into force of this Decree, units subject to internal audit requirements must complete tasks necessary for performing internal audit activities in accordance with this Decree.

This Decree also provides some contents as follows:

  • Definition
  • Objectives of internal audit
  • Fundamental principles and requirements for assuring compliance with fundamental principles of internal audit
  • Moral principles of internal auditors
  • Internal audit duties of State regulatory authorities, State-owned public service units and enterprises that have to perform the internal audit
  • Eligibility standards of internal auditors
  • Internal audit rules and processes
  • Internal audit approaches
  • Annual internal audit plans and implementation of audit plans
  • Audit reports, unscheduled audit reports and specialized consultations
  • Filing and archival of internal audit records and documents
  • Assurance of quality of internal audit activities
  • Duties, rights and responsibilities of internal audit departments internal auditors and persons in charge of internal audits
  • Responsibilities of all internal parties to internal audit and State management of internal audits.

Detail information, please refer here.