THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 171/1998/TT-BTC
Hanoi, December 22, 1998
 
CIRCULAR
GUIDING THE ORGANIZATION OF INTERNAL AUDITS AT STATE ENTERPRISES
The Ministry of Finance issued Decision No.832/TC/QD/CDKT on October 28, 1997 promulgating the Regulation on Internal Audit and Circular No.52/1998/TT-BTC on April 16, 1998 guiding the organization of internal audits at State enterprises. In the course of implementation of the said documents, there remain a number of questions that require amendments so as to make them suited to the managerial mechanism and the actual situation of enterprises. The Ministry of Finance hereby provides the following guidance for the organization of internal audits at State enterprises:
I. PROVISIONS ON INTERNAL AUDIT
1. State enterprises shall take responsibility before law for the accuracy and truthfulness of their financial reports and shall have to organize internal audit of such financial reports by themselves or hire independent auditing organizations if it deems necessary.
Internal audit is regular job of an enterprise, organized by that enterprise itself to ensure the reliability of accounting data and the information in its financial reports, chiefly in service of itself.
2. The scope and tasks of an internal audit; its contents, order and methods and other contents shall comply with the provisions of the Regulation on Internal Audit issued together with Decision No.832-TC/QD/CDKT of October 28, 1997 of the Minister of Finance.
3. Organization of internal audit apparatus :
Depending on the scope of its production and business, its operation location, concentrated or scattered, its specific conditions and professional capacity of its accountants... the enterprise may select a suitable and efficient form of organization of its internal audit apparatus. The organization of internal audit apparatuses is not compulsory for enterprises.
- State enterprises which have organized their internal audit apparatuses according to Circular No.52/1998/TT-BTC of April 16, 1998 of the Ministry of Finance shall, depending on the situation of each enterprise, maintain the organization and operation of such apparatuses or re-organize them as stipulated in this Circular.
- For enterprises which have not yet organized their internal audit apparatuses, if they meet the prescribed conditions and deem it necessary to organize their own internal audit apparatuses, the general directors (directors) of such enterprises shall select and decide suitable forms of organization of their internal audit apparatuses.
4. The following is added to the criteria on professional standard and working seniority of internal auditors stipulated in Article 12 of the Regulation on Internal Audit issued together with Decision No.832-TC/QD/CDKT of October 28, 1997 of the Ministry of Finance :
In cases where an internal auditor does not have a university degree in economics, finance, accountancy or business administration, he/she must, at least, have an intermediate degree in economics, finance or business administration; he/she must have worked in the field of financial or accountancy management for 5 years or more, with at least 3 years working at the concerned enterprise, and his/her professional standard is not lower than that of the chief accountant of the enterprise.
5. To annul the following provision concerning the appointment of the head of an internal auditing section : "after obtaining a written consent from the General Department and Department for Management of State's Capital and Property at the Enterprises "in Article 17 of the Regulation on Internal Audit issued together with Decision No.832-TC/QD/CDKT of October 28, 1997 of the Ministry of Finance.
II. ORGANIZATION OF IMPLEMENTATION
1. This Circular takes effect 15 days after its signing and replaces Circular No.52/1998/TT-BTC of April 16, 1998 of the Ministry of Finance guiding the organization of internal audit apparatuses at State enterprises.
2. In the course of implementation of this Circular, if any difficulty arises, it should be promptly reported to the Ministry of Finance for study and appropriate amendment and/or supplement.
 

 

 
FOR THE MINISTER OF FINANCE
VICE MINISTER




Tran Van Ta