Law on State Audit No. 37/2005/QH11

LAW

State Audit Agency

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992, amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the National Assembly, tenth session;

Based on the Law on the Organization of the National Assembly;

This Law stipulates on state audit.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of application

This Law stipulates on the legal status, functions, tasks, powers, and organization of the State Audit Agency; the tasks and powers of state auditors; entities subject to audit and related organizations and individuals; activities and assurance of state audit activities.

Article 2. Applicability

1. Entities subject to audit.

2. State Audit Agency.

3. Other organizations and individuals related to state audit activities.

Article 3. Purpose of audit

State audit activities serve the purpose of inspection and supervision by the State in managing and using the State budget, money, and State assets; contributing to practicing thrift, combating corruption, loss, waste, detecting and preventing violations of laws; enhancing the effectiveness of using the State budget, money, and State assets.

Article 4. Definitions

In this Law, the following terms shall be understood as follows:

1. The audit activities of the State Audit Agency involve checking, evaluating, and confirming the accuracy and truthfulness of financial statements; compliance with laws; economy, efficiency, and effectiveness in managing and using the State budget, money, and State assets.

2. Financial statement audit is a type of audit for checking, evaluating, and confirming the accuracy and truthfulness of financial statements.

3. Compliance audit is a type of audit for checking, evaluating, and confirming compliance with laws, internal regulations, and rules that the entity subject to audit must follow.

4. Operational audit is a type of audit for checking, evaluating the economy, efficiency, and effectiveness in managing and using the State budget, money, and State assets.

5. Audit evidence is documentation and information collected by state auditors related to the audit, serving as the basis for evaluation, confirmation, conclusion, and recommendation of the audit.

6. The audit report of the State Audit Agency is a document established and published by the State Audit Agency to evaluate, confirm, conclude, and recommend on the contents that have been audited.

7. State assets are assets formed or derived from the State budget, belonging to the ownership and management of the State, being the accounting object of entities subject to audit.

Article 5. Object of state audit

The object of state audit is activities related to the management and use of the State budget, money, and State assets.

Article 6. Responsibilities of agencies and organizations managing and using the State budget, money, and State assets regarding the accuracy and truthfulness of financial statements

1. Bear legal responsibility for the accuracy and truthfulness of accounting figures and information in financial statements.

2. Based on legal provisions, establish and maintain appropriate and effective internal control systems.

3. Organize internal audits according to legal regulations to protect asset safety; assess the quality and reliability of economic and financial information; compliance with laws, systems, and policies of the State and internal regulations and rules of the entity.

Article 7. Principles of state audit activities

1. Independence and adherence only to the law.

2. Honesty and impartiality.

Article 8. Standards for state audit

1. State audit standards include provisions on principles of operation, conditions, and requirements for professional ethics and competence for state auditors; provisions on auditing procedures and handling relationships arising during auditing activities that state auditors must comply with when conducting auditing activities; serving as a basis for checking and assessing the quality of auditing and professional ethics of state auditors.

2. The Standing Committee of the National Assembly shall stipulate on the procedures for building and promulgating the system of state audit standards.

3. The Chief State Auditor shall build and promulgate the system of state audit standards based on the provisions of the Standing Committee of the National Assembly.

Article 9. Value of the audit report

1. The audit report of the State Audit Agency confirms the accuracy and truthfulness of financial statements and final accounts reports; evaluates compliance with laws, economy, efficiency, and effectiveness in managing and using the State budget, money, and State assets.

2. The audit report of the State Audit Agency serves as one of the bases for:

a) The National Assembly to use in the process of examining and deciding on the State budget estimate, allocating the central budget, deciding on national key projects funded from the State budget; examining and approving the final accounts of the State budget and using it in supervising the implementation of the State budget, national financial and monetary policy, resolutions of the National Assembly on the State budget, national key projects, socio-economic development programs, other important construction projects;

b) The Government, state management agencies, and other state organizations to use in their management, operation, and enforcement of their tasks;

c) People's Councils to use in the process of examining and deciding on local budget estimates, allocations, and supervision; approving the final accounts of the local budget;

d) People's Courts, People's Procuratorates, and Investigation Agencies to use in the process of handling economic and financial law violations;

e) Entities subject to audit must implement the conclusions and recommendations of the State Audit Agency concerning errors in financial statements and errors in compliance with laws; implement measures to address weaknesses in the entity's operations discovered and recommended by the State Audit Agency.

3. Authorities and persons with authority who use audit conclusions decide on accepting the audit conclusions of the State Audit Agency and bear legal responsibility for their decisions.

An audit conclusion accepted by authorities or persons with authority has mandatory enforceability.

Article 10. Responsibilities of organizations and individuals related to state audit activities

1. Organizations and individuals related to auditing activities shall be responsible for providing complete, accurate, and timely information and documents as required by the State Audit Agency and State Auditors, and shall bear legal responsibility for the accuracy, honesty, and objectivity of the provided information and documents.

2. Upon receiving an audit report, competent state agencies shall be responsible for fully and promptly addressing the conclusions and recommendations of the State Audit Agency, and simultaneously sending the report on the results of such resolution to the State Audit Agency.

Article 11. apply international treaties

In cases where international treaties on state auditing to which the Socialist Republic of Vietnam is a party provide different provisions from those stipulated in this Law, the provisions of such international treaties shall be applied.

Article 12. Prohibited acts

1. The following acts are strictly prohibited against the State Audit Agency and State Auditors:

a) Harassing, causing difficulties, or inconveniencing the audited entity;

b) Illegally interfering with the normal operations of the audited entity;

c) Accepting bribes;

d) Reporting false or incomplete audit results;

đ) Misusing their positions or powers for personal gain;

e) Disclosing state secrets or the professional confidentiality of the audited entity;

g) Disclosing information about the situation and results of the audit that have not been officially announced;

h) Other prohibited acts as prescribed by law.

2. The following acts are strictly prohibited against the audited entity and organizations or individuals related to it:

a) Refusing to provide information and documents requested by the State Audit Agency and State Auditors for the purpose of conducting an audit;

b) Obstructing the work of the State Audit Agency and State Auditors;

c) Reporting false, dishonest, incomplete, and unobjective information related to the audit conducted by the State Audit Agency;

d) Bribing State Auditors;

đ) Concealing violations of financial and budgetary laws;

e) Other prohibited acts as prescribed by law.

3. It is strictly prohibited for any organization or individual to illegally interfere with the auditing activities of the State Audit Agency.

Chapter II

LEGAL STATUS, FUNCTIONS, TASKS, POWERS AND ORGANIZATION OF THE STATE AUDIT AGENCY

PART 1

LEGAL STATUS, FUNCTIONS, TASKS AND POWERS OF THE STATE AUDIT AGENCY

Article 13. Legal status of the State Audit Agency

The State Audit Agency is a specialized agency in the field of state financial inspection established by the National Assembly, operating independently and only adhering to the law.

Article 14. Functions of the State Audit Agency

The State Audit Agency has the function of auditing financial reports, compliance audits, and operational audits of agencies and organizations managing and using the state budget, money, and state assets.

Article 15. Tasks of the State Audit Agency

1. Deciding on the annual audit plan and reporting to the National Assembly and Government before implementation.

2. Organizing the implementation of the annual audit plan and performing audit tasks as required by the National Assembly, Standing Committee of the National Assembly, Government, and Prime Minister.

3. Considering and deciding on audits when the Standing People's Council, Provincial People's Committees, and Municipal People's Committees directly under the central government request.

4. Submitting opinions of the State Audit Agency for the National Assembly to consider and decide on the state budget estimate, allocation of the central budget, important national projects, and approval of the state budget settlement.

5. Participating with the Economic and Budget Committee of the National Assembly and other National Assembly agencies in reviewing and examining reports on the state budget estimate, central budget allocation plans, adjustments to the state budget estimate, and budget arrangements for important national projects decided by the National Assembly and state budget settlement.

6. Participating with the Economic and Budget Committee of the National Assembly when requested in supervising the implementation of laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly concerning finance and budget, and the implementation of the state budget and financial policies.

7. Participating with government and National Assembly agencies when requested in drafting and examining draft laws and ordinances.

8. Reporting the results of the annual audit and the implementation of audit recommendations to the National Assembly and Standing Committee of the National Assembly; submitting audit reports to the National Ethnic Council, National Assembly committees, the President, Government, and Prime Minister; providing audit results to the Ministry of Finance, People's Councils where the audit was conducted, and other agencies as prescribed by law.

9. Organizing the public disclosure of audit reports in accordance with Article 58 and Article 59 of this Law and other relevant legal provisions.

10. Transferring case files to investigative agencies and other state agencies with authority to inspect and handle cases involving violations of laws discovered through auditing activities.

11. Managing audit files; maintaining confidentiality of accounting documents and information about the operations of the audited entity as prescribed by law.

12. Implementing international cooperation in the field of state auditing.

13. Organizing and managing scientific research, training, and development of human resources for the State Audit Agency.

14. Organizing examinations and issuing State Auditor certificates.

15. Directing and guiding internal audit expertise and utilizing the results of internal audits of agencies and organizations as stipulated in Article 6 of this Law.

16. Performing other tasks as prescribed by law.

Article 16. Powers of the State Audit Agency

1. Requesting the audited entity and related organizations and individuals to provide complete, accurate, and timely information and documents for the purpose of conducting an audit; requesting relevant agencies to cooperate in carrying out assigned tasks; requesting state agencies, mass organizations, social organizations, and citizens to assist and create favorable conditions for the performance of tasks.

2. Request the audited unit to implement the conclusions and recommendations of the State Audit Agency regarding financial statement violations and violations in compliance with the law; recommend measures to address weaknesses in the operation of the audited unit as identified and recommended by the State Audit Agency.

3. Check the implementation of the conclusions and recommendations of the State Audit Agency by the audited unit.

4. Recommend competent state agencies to require audited units to implement the audit conclusions and recommendations concerning financial statement violations and violations in compliance with the law; propose legal action against cases where such conclusions and recommendations are not implemented or are not fully and timely executed.

5. Recommend competent state agencies to handle legal violations by organizations and individuals clearly identified through audit activities.

6. Propose competent authorities to handle according to the law organizations and individuals who obstruct the audit activities of the State Audit Agency or provide false information and documents to the State Audit Agency and State Auditors.

7. Request expert appraisal when necessary.

8. Be authorized to entrust or hire auditing firms to conduct audits of agencies and organizations managing and using state budget funds, money, and assets; the State Audit Agency shall be responsible for the accuracy of the data, documents, and audit conclusions prepared by the auditing firm.

9. Recommend the National Assembly, Standing Committee of the National Assembly, Government, Prime Minister, and other state agencies to amend and supplement mechanisms, policies, and laws to ensure consistency.

PART 2

STATE AUDITOR GENERAL, DEPUTY STATE AUDITOR GENERAL

Article 17. State Auditor General

1. The State Auditor General is the head of the State Audit Agency, accountable for the organization and operations of the State Audit Agency before the law, the National Assembly, the Standing Committee of the National Assembly, and the Government.

2. The State Auditor General is elected, relieved, and removed from office by the National Assembly upon the proposal of the Standing Committee of the National Assembly after reaching consensus with the Prime Minister; the criteria for the State Auditor General are stipulated by the Standing Committee of the National Assembly.

3. The term of office of the State Auditor General is seven years, renewable but not exceeding two terms.

4. The salary and other benefits of the State Auditor General are determined by the Standing Committee of the National Assembly based on the national wage policy and benefits system, similar to those of the Chairperson of the National Assembly's Committees.

Article 18. Responsibilities of the State Auditor General

1. Lead and direct the State Audit Agency to perform tasks and powers as prescribed in Articles 15 and 16 of this Law.

2. Present the final account audit report of the state budget to the National Assembly; present the annual audit report of the State Audit Agency to the National Assembly when requested by the National Assembly.

3. Be legally responsible for the content of the audit reports of the State Audit Agency.

4. Decide and organize the implementation of specific measures to strengthen discipline and order in state audit activities; combat corruption, waste, and all manifestations of bureaucracy, arrogance, and abuse of power by officials, civil servants, and employees under the State Audit Agency.

5. Define the functions, tasks, powers, and organizational structure of subordinate units of the State Audit Agency.

6. Submit to the Standing Committee of the National Assembly for decision on staffing and the establishment, merger, or dissolution of subordinate units of the State Audit Agency.

7. Implement measures to ensure independence in state audit activities.

8. Examine and resolve recommendations regarding audit reports.

9. Perform other tasks as prescribed by law.

Article 19. Powers of the State Auditor General

1. Issue audit decisions.

2. Attend plenary sessions of the National Assembly, meetings of the Standing Committee of the National Assembly, and Government sessions related to issues within their purview.

3. Recommend ministers, heads of ministerial-level agencies, heads of government agencies, central-level agencies, Chairpersons of provincial People's Councils directly under the Central Government, and superiors of audited units to handle according to their authority organizations and individuals obstructing the audit activities of the State Audit Agency; providing false information and documents to the State Audit Agency; failing to implement or fully implement audit conclusions and recommendations. In cases where audit conclusions and recommendations are not resolved or resolved inadequately, the State Auditor General will recommend that the competent authority handle according to the law.

4. Decide on audits at the request of units specified in Clause 12, Article 63 of this Law and units not included in the State Audit Agency's annual audit plan.

5. Decide on sealing documents, checking accounts of audited units or relevant individuals upon the recommendation of the Audit Team Leader.

6. Issue, guide, inspect, and organize the implementation of state audit standards; issue decisions, directives, work regulations; issue rules, procedures, and specialized methods applicable in state audit organization and activities; specify procedures for audits and audit files.

Article 20. Deputy State Auditor General

1. The Deputy State Auditor General assists the State Auditor General, assigned by the State Auditor General to lead certain aspects of work and is accountable to the State Auditor General for the assigned tasks. When the State Auditor General is absent, a Deputy State Auditor General appointed by the State Auditor General shall lead the work of the State Audit Agency.

2. The Deputy State Auditor General is appointed, relieved, or dismissed by the State Auditor General upon the proposal of the Standing Committee of the National Assembly.

3. The term of office of the Deputy State Auditor General is seven years.

4. The Deputy State Auditor's salary and other benefits shall be determined by the Standing Committee of the National Assembly based on the state's wage policy and other benefits, which are equivalent to those of the Deputy Chairperson of the Committees of the National Assembly.

PART 3

||| ORGANIZATION OF STATE AUDIT

Article 21. ||| SYSTEM OF STATE AUDIT ORGANIZATION

1. The State Audit is organized and managed centrally and uniformly, comprising administrative machinery, specialized State Audit, regional State Audit, and public service units.

2. The Standing Committee of the National Assembly shall specify in detail the organizational structure of the State Audit.

The State Auditor General shall specify in detail the functions, tasks, powers, and organizational structure of subordinate units under the State Audit.

The number of specialized State Audits and regional State Audits during each period shall be determined based on the requirements of tasks proposed by the State Auditor General for approval by the Standing Committee of the National Assembly.

Article 22. SPECIALIZED STATE AUDIT

Specialized State Audit is a unit under the State Audit, conducting audits according to specialized fields for central agencies and organizations.

Article 23. REGIONAL STATE AUDIT

Regional State Audit is a unit under the State Audit, conducting audits for local agencies and organizations within its region and other audit tasks assigned by the State Auditor General. Regional State Audit has legal personality, its own seal, bank account, and separate office.

Article 24. AUDIT CHIEF AND ASSISTANT AUDIT CHIEFS

The Audit Chief is the head of specialized State Audit and regional State Audit. Assistant Audit Chiefs assist the Audit Chief. The Audit Chief and Assistant Audit Chiefs are appointed, relieved, or dismissed by the State Auditor General.

PART 4

STATE AUDIT COUNCIL

Article 25. Establishment and Dissolution of the State Audit Council

1. The State Auditor General establishes the State Audit Council to advise on the review of important audit reports or re-examine audit reports upon the recommendation of the audited entity and assist the State Auditor General in handling recommendations regarding audit reports.

2. The State Auditor General decides on the establishment of the State Audit Council, its members, and working regulations. The State Audit Council is chaired by a Deputy State Auditor General. Depending on specific cases, the State Auditor General may invite experts not belonging to the State Audit to participate in the Council. In cases where the audit object involves state secrets and national security, the State Auditor General serves as the Chairman of the Council.

3. The State Audit Council dissolves itself upon completion of its mission.

Article 26. PRINCIPLES OF WORKING OF THE STATE AUDIT COUNCIL

The principles of working of the State Audit Council are collective discussion, majority voting, minority opinions being preserved and reported to the State Auditor General. Opinions of State Audit Council members are recorded in the minutes of the Council. Minutes and other documents of the State Audit Council are kept and stored in the audit file of the State Audit.

Chapter III

NATIONAL AUDITOR AND AUDIT COOPERATIVE

Article 27. POSITION OF NATIONAL AUDITOR

1. A National Auditor is a civil servant appointed to the auditing rank to perform auditing tasks.

2. The position of National Auditor includes the following ranks:

a) Probationary National Auditor;

b) National Auditor;

c) Senior National Auditor;

d) Senior National Auditor (High Level).

3. The duties, powers, and specific criteria for each rank of National Auditor are stipulated by the Standing Committee of the National Assembly.

Article 28. AUTHORITY TO APPOINT AND RELIEVE NATIONAL AUDITORS

1. The appointment and relief of National Auditors and Senior National Auditors are decided by the State Auditor General in accordance with the law.

2. The appointment and relief of Senior National Auditors (High Level) are decided by the Standing Committee of the National Assembly in accordance with the law.

Article 29. GENERAL CRITERIA FOR NATIONAL AUDITORS

A National Auditor must meet the general criteria for cadres and civil servants as prescribed by the law on cadres and civil servants, and the following criteria:

1. Good moral character, sense of responsibility, honesty, integrity, and impartiality;

2. Hold a bachelor's degree or higher in auditing, accounting, finance, banking, economics, law, or another related field directly relevant to auditing activities;

3. Have at least five years of continuous work experience in the field of study or have at least three years of auditing practice at the State Audit;

4. Have completed the National Auditor training program and been issued a certificate by the State Auditor General.

Article 30. RESPONSIBILITIES OF NATIONAL AUDITORS

1. Perform auditing tasks and be responsible before the Team Leader of the Audit Team and the Head of the Audit Group for the assigned auditing tasks; provide evaluations, confirmations, conclusions, and recommendations on the audited contents based on sufficient and appropriate audit evidence collected.

2. Adhere to laws, operational principles, standards, procedures, professional methods, and other relevant regulations of the State Auditor General.

3. Be responsible before the State Auditor General and the law for their audit evidence, assessments, confirmations, conclusions, and recommendations.

4. Collect audit evidence, record audit journals, and other working documents of National Auditors as prescribed by the State Auditor General.

5. Maintain confidentiality of information and documents obtained during the audit process.

6. When performing auditing tasks, National Auditors must present and wear the National Auditor identification card.

7. Continuously study and train to enhance professional knowledge, skills, and occupational ethics; implement annual knowledge update programs as prescribed by the State Auditor General, ensuring adequate professional competence suitable for assigned tasks.

8. Timely and fully report to the decision-making body for establishing the Audit Team when there are situations prescribed in Article 31 of this Law and other circumstances affecting the independence of State Auditors.

9. In case of violation of laws, they shall be subject to disciplinary action or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be provided according to the provisions of the law.

Article 31. Cases where State Auditors are not allowed to conduct audits

1. Contributing capital, purchasing shares, or having other economic interests with the audited entity.

2. The audited entity where the auditor has served as a leader, chief accountant, or accounting supervisor within at least five years from the date of transfer.

3. Having a relationship as father, mother, adoptive father, adoptive mother, father-in-law, mother-in-law, father-in-law, mother-in-law, wife, husband, child, brother, sister, or half-sibling with the head, chief accountant, or accounting supervisor of the audited entity.

Article 32. Audit Collaborators

1. The State Audit Office may engage audit collaborators, including auditing enterprises and experts both domestically and internationally through contracts to perform tasks. The cost of using collaborators is included in the annual operating budget of the State Audit Office.

2. Audit collaborators have the following rights and obligations:

a) To exercise rights and fulfill obligations according to the contract;

b) To strictly comply with the laws on state audit;

c) To be responsible before the State Audit Office and the law for the results of performing tasks; in case of violation of laws, they will be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be provided according to the provisions of the law.

3. The Chief State Auditor shall specify the details of engaging audit collaborators.

Chapter IV

STATE AUDIT ACTIVITIES

PART 1

AUDIT DECISION

Article 33. Basis for issuing an audit decision

The Chief State Auditor issues an audit decision when there is one of the following bases:

1. The annual audit plan of the State Audit Office;

2. Requests from the National Assembly, Standing Committee of the National Assembly, Government, Prime Minister;

3. Requests from the Standing Committee of People's Councils, People's Committees of provinces and centrally governed cities; proposals from units specified in Clause 12, Article 63 of this Law and units not included in the annual audit plan of the State Audit Office that have been accepted by the Chief State Auditor.

Article 34. Audit of final accounts reports on state budgets

1. The audit of final accounts reports on state budgets at all levels shall be conducted prior to the approval of such reports by the National Assembly and People's Councils.

2. In cases where the audit has been conducted but the final accounts report on the state budget has not yet been approved by the National Assembly and People's Councils, within their respective powers and authorities, the State Audit Office must continue to clarify the issues requested by the National Assembly and People's Councils to present them to the National Assembly and People's Councils at the time decided by the National Assembly and People's Councils.

3. The audit of final accounts reports on local state budgets after the approval by the People's Councils, if it was not previously audited, shall be carried out according to the decision of the Chief State Auditor.

Article 35. Audit Decision

1. An audit decision must clearly state the following contents:

a) Legal basis for conducting the audit;

c) Objectives, content, scope of the audit;

d) Time and location of the audit;

d) Audit location; audit period;

đ) Head of the Audit Team and other members of the Audit Team.

2. The audit decision must be sent to the audited entity no later than three days and must be published no later than fifteen days from the date of signing, except in cases of emergency audits.

3. During the audit process, if it is necessary to change the content, scope, location, period, or members of the Audit Team, the Chief State Auditor must decide in writing and send it to the audited entity according to the deadline stipulated in Clause 2 of this Article.

PART 2

TYPES AND CONTENT OF AUDITS

Article 36. Types of audits

1. Types of audits include:

a) Financial statement audit;

b) Compliance audit;

c) Performance audit.

2. The Chief State Auditor decides the type of audit for each audit. In cases of audits based on requests from the National Assembly, Standing Committee of the National Assembly, Government, Prime Minister, Standing Committee of People's Councils, People's Committees of provinces and centrally governed cities, the type of audit shall be carried out according to the request.

Article 37. Content of financial statement audit

1. The content of the financial statement audit for entities under state budget revenue and expenditure activities includes:

a) Money and equivalents;

b) Sources of funds and reserves;

c) Payments within and outside the audited entity;

d) Revenue and expenditure of state budgets at all levels;

đ) Surplus of state budgets at all levels;

e) State financial investment and credit;

g) State debts and debt resolution;

h) Other assets that are accounting objects of the audited entity.

2. The content of the financial statement audit for entities under administrative, public service, and other organizations using state budget funds includes:

a) Money and equivalents;

b) Inventories and fixed assets;

c) Sources of funds and reserves;

d) Payments within and outside the audited entity;

đ) Revenue, expenditure, and handling of revenue-expenditure discrepancies;

e) State financial investment and credit;

g) Other assets that are accounting objects of the audited entity.

3. The content of the financial statement audit for state-owned enterprises includes:

a) Fixed assets and long-term investments; current assets and short-term investments;

b) Accounts payable;

c) Shareholders' equity;

d) Operating revenues, operating expenses, other income, and other expenses;

đ) Taxes and other payments to the state budget;

e) Results and distribution of business operation results;

g) Other assets that are accounting objects of the audited entity.

Article 38. Content of compliance audit

1. Implementation of the State Budget Law, Accounting Law, tax laws, and other relevant regulatory legal documents.

2. Implementation of internal regulations and rules of the audited entity.

Article 39. Content of performance audit

1. Implementation of operational objectives and tasks.

2. Matters concerning guarantee, management, and utilization of resources.

3. Internal control system.

4. Programs, projects, and activities of the audited entity.

5. The impact of external environment on the economy, effectiveness, and efficiency of the audited entity's operations.

Article 40. Determining the Audit Content

Based on the purpose of each audit, the State Auditor General decides to conduct a full or partial audit of the contents specified in Articles 37, 38, and 39 of this Law.

PART 3

AUDIT PERIOD AND LOCATION

Article 41. Audit Period

1. Each audit is conducted within a specific period. The audit period runs from the date of announcement of the audit decision to the completion of the audit at the audited entity.

2. Depending on the content and scope of each audit, the State Auditor General decides specifically on the audit period.

Article 42. Audit Location

The audit is carried out at the audited entity, the State Auditor General’s office, or another location. The State Auditor General decides on the audit location.

In cases where the audit is conducted outside the audited entity's premises, the audited entity is responsible for transferring files and documents as prescribed by the State Auditor General.

PART 4

AUDIT TEAM

Article 43. Establishment and Dissolution of the Audit Team

1. The audit team is established to perform the State Auditor General’s audit tasks. The State Auditor General decides to establish the audit team based on the proposal of the specialized State Auditor General or the regional State Auditor General.

2. The audit team dissolves itself after completing its audit task but remains responsible for evaluations, confirmations, conclusions, and recommendations in the audit report.

Article 44. Composition of the Audit Team

The audit team consists of the Team Leader, Deputy Team Leaders, Group Leaders, and other members. The State Auditor General decides on the list of audit team members and appoints the Team Leader, Deputy Team Leaders, and Group Leaders based on the proposal of the specialized State Auditor General or the regional State Auditor General.

Article 45. Duties, Authorities, and Responsibilities of the Team Leader

1. The Team Leader has the following duties:

a) Developing and submitting to the State Auditor General for approval the audit plan based on the objectives, content, and scope of the audit as recorded in the audit decision; directing the development and approval of detailed audit plans for each audit group;

b) Assigning tasks to Deputy Team Leaders and Group Leaders; directing and managing the audit team to carry out audits according to the approved audit plan;

c) Organizing and supervising the implementation of the audit team regulations, auditing standards, procedures, professional methods, record-keeping, and storage of audit files as prescribed by the State Auditor General;

d) Approving audit records of each audit group and preparing the audit report of the audit team. Organizing discussions within the audit team to reach consensus on evaluations, confirmations, conclusions, and recommendations in the audit report;

đ) Defending the audit results recorded in the audit report before the State Auditor General and jointly defending those results before the State Auditor General; organizing the announcement of the audit results approved by the State Auditor General to the audited entity; signing the audit report;

e) Managing the members of the audit team during the performance of audit tasks;

g) Reporting periodically or as required by the State Auditor General on the progress of the audit plan implementation, audit activity status, and results for the State Auditor General to report to the State Auditor General;

2. The Team Leader has the following authorities:

a) Requesting the audited entity to provide necessary information and documents and explain issues related to the audit content; requesting inventory checks and account reconciliations of the audited entity related to the audit content; summoning witnesses upon the request of the state auditor;

b) Requesting organizations and individuals related to provide documents and information related to the audit content;

c) Proposing the State Auditor General to issue a decision to inspect accounts of the audited entity or relevant individuals at banks, credit institutions, or the National Treasury as prescribed by law; proposing the State Auditor General to seal the documents of the audited entity when there are violations of the law or actions to modify, transfer, hide, or destroy relevant documents;

d) Requesting Deputy Team Leaders, Group Leaders, and other members of the audit team to report audit results; when there are differing opinions within the audit team regarding audit results, the Team Leader has the right to decide and is responsible for such decisions, while reporting these differing opinions to the State Auditor General;

đ) Reserving in writing their opinion different from the evaluations, confirmations, conclusions, and recommendations in the audit report;

e) Proposing the State Auditor General to propose to competent authorities to handle violations of the law by the audited entity;

g) Temporarily suspending the performance of duties by members of the audit team from Group Leaders down if they commit errors affecting the audit team's operations and immediately reporting to the State Auditor General; in serious cases, reporting to the State Auditor General;

h) Proposing commendation or disciplinary action against Deputy Team Leaders, Group Leaders, and other members of the audit team for outstanding achievements or errors during the performance of audit tasks.

3. The Team Leader has the following responsibilities:

a) Being accountable to the State Auditor General and the State Auditor General for the activities of the audit team;

b) Being accountable under the law for the accuracy, honesty, and objectivity of evaluations, confirmations, conclusions, and recommendations in the audit report of the audit team.

c) Bear joint responsibility for the violations committed by members within the Audit Team;

d) Ensure living and working conditions for the Audit Team during the audit period in accordance with the regulations of the State Auditor General;

đ) Bear responsibility for decisions to temporarily suspend the performance of duties by members of the Audit Team from the Team Leader downwards;

Article 46. Deputy Head of the Audit Team

The Deputy Head of the Audit Team assists the Head of the Audit Team, performs tasks assigned by the Head of the Audit Team, and is responsible to the Head of the Audit Team for the assigned tasks;

Article 47. Duties, powers, and responsibilities of the Team Leader of the Audit Team

1. The Team Leader of the Audit Team has the following duties:

a) Develop detailed audit plans to be submitted to the Head of the Audit Team for approval and organize the implementation of the detailed audit plan after it has been approved;

b) Assign specific tasks to members of the Audit Team;

c) Direct and manage members of the Audit Team to conduct audits according to the approved audit plan;

d) Direct and monitor the collection of audit evidence; record audit diaries and working documents of the Audit Team and State Auditors in accordance with the regulations of the State Auditor General;

đ) Report periodically or at the request of the Head of the Audit Team on the progress of implementing the audit plan, the situation and results of the audit;

e) Compile the audit results of members of the Audit Team to prepare the audit report; organize discussions within the Audit Team to reach consensus on evaluations, confirmations, conclusions, and recommendations in the audit report;

g) Defend the audit results recorded in the audit report before the Head of the Audit Team; organize the announcement of the audit results approved by the Head of the Audit Team to the audited unit; sign the audit report;

h) Deputize the Head of the Audit Team to manage members of the Audit Team in accordance with the regulations of the State Auditor General;

2. The Team Leader of the Audit Team has the following powers:

a) Require the audited unit to provide complete and timely information and documents necessary and explain issues related to the audit content;

b) Require organizations and individuals related to provide information and documents related to the audit content;

c) Reserve in writing opinions different from evaluations, confirmations, conclusions, and recommendations in the audit report;

d) Report and recommend measures to handle members of the Audit Team who have committed violations for the Head of the Audit Team to consider and handle within their authority or recommend handling in accordance with regulations;

3. The Team Leader of the Audit Team has the following responsibilities:

a) Be responsible to the Head of the Audit Team for the activities of the Audit Team;

b) Be responsible under the law for the accuracy, honesty, and objectivity of evaluations, confirmations, conclusions, and recommendations in the Audit Team's audit report;

c) Be responsible for explaining issues related to the Audit Team's work upon request of the Head of the Audit Team or authorized units or individuals;

d) Bear joint responsibility for the violations committed by members of the Audit Team;

Article 48. Duties and Powers of Members of the Audit Team who are State Auditors

1. Members of the Audit Team who are State Auditors have the following duties:

a) Complete the assigned audit tasks and report the results of the audit tasks to the Team Leader of the Audit Team;

b) When conducting audits, only follow laws and current regulations on auditing by the State Auditor General, adhere to principles, standards, procedures, and other regulations on auditing by the State Auditor General;

c) Collect and evaluate audit evidence; record audit diaries and other working documents of State Auditors, retain and preserve audit files in accordance with the regulations of the State Auditor General;

d) Comply with directives and conclusions of the Team Leader of the Audit Team and the Head of the Audit Team;

đ) Adhere to the disciplinary rules of the Audit Team and the Audit Group as stipulated by the State Auditor General;

2. Members of the Audit Team who are State Auditors have the following powers:

a) When performing audits, State Auditors have the right to independence and only follow laws in making observations, evaluations, conclusions, and recommendations on the audited contents;

b) Require the audited unit and related organizations and individuals to provide complete and timely information and documents related to the audit content;

c) Use information and documents of audit collaborators; review all documents related to the audited unit's operations; collect and protect other documents and evidence; observe the operation processes of the audited unit;

d) Reserve in writing opinions on audit results within the assigned scope; report to the Head of the Audit Team or the Chief Auditor for consideration if there is no agreement, then report to the State Auditor General;

đ) Request the Head of the Audit Team and the Team Leader of the Audit Team to clarify reasons for changing their evaluations, confirmations, conclusions, and recommendations in the audit report and audit reports;

e) Propose the Head of the Audit Team and the Team Leader of the Audit Team to summon witnesses to collect necessary audit evidence; propose the audited unit to convene meetings and explain issues related to the audit; propose to invite experts and audit collaborators when necessary;

g) Be guaranteed the necessary conditions and means to effectively conduct audits; be provided with a workplace by the audited unit when the audit is conducted at the audited unit;

h) Be protected by law during the performance of audit tasks;

Article 49. Duties and Responsibilities of Other Members of the Audit Team

1. Other members of the Audit Team include Reserve Auditors and Audit Collaborators;

2. Other members of the Audit Team have the following duties and responsibilities:

a) Complete tasks assigned by the Team Leader of the Audit Team;

b) Adhere to auditing standards, procedures, and professional methods of the State Auditor General;

c) Shall be responsible before the Audit Team Leader for the assigned tasks.

SECTION 5

AUDIT PROCEDURE

Article 50. Steps of the audit procedure

1. Preparation for audit.

2. Conducting the audit.

3. Preparing and submitting the audit report.

4. Checking the implementation of audit conclusions and recommendations.

Article 51. Preparation for audit

1. Surveying and collecting information on the internal control system, financial situation, and other relevant information about the audited entity.

2. Evaluating the internal control system and the collected information about the audited entity to determine the objectives, contents, scope, and appropriate methods of the audit.

3. Drafting the audit plan.

Article 52. Conducting the audit

1. The audit team must conduct the audit according to the audited entity, objectives, contents, scope, location, and deadline specified in the State Auditor General's audit decision.

2. Members of the audit team shall apply specialized and professional auditing methods to collect and evaluate audit evidence; check, reconcile, confirm; investigate organizations and individuals related to the audit activities as the basis for opinions, confirmations, conclusions, and recommendations on the audited matters.

Article 53. Preparing and submitting the audit report

1. Upon completion of the audit year and the audit mission, the State Audit Office shall prepare an audit report detailing opinions, confirmations, conclusions, and recommendations on the audited matters.

The audit report shall be signed and stamped by the State Auditor General or a person authorized by the State Auditor General.

2. The audit report includes the following types:

a) Audit report of the audit mission;

b) Audit report of the state budget settlement;

c) Annual audit report;

d) Special audit report.

3. The preparation and submission of the audit report shall be carried out in accordance with Article 54, Article 55, and Article 56 of this Law.

Article 54. Preparing and submitting the audit report of the audit mission

1. Within fifteen days from the date the audit team completes the audit at the audited entity, the Head of the Audit Team must complete the draft audit report to submit to the Chief Auditor for the Chief Auditor to submit the draft audit report to the State Auditor General within twenty days from the date of completing the audit at the audited entity.

2. Within ten days from the date of receiving the draft audit report, the State Auditor General shall be responsible for organizing the review, completion of the draft audit report, and sending it to the audited entity for comments within five days after the draft audit report has been reviewed and completed.

3. Within seven days from the date of receiving the draft audit report, the audited entity must provide written comments to the State Audit Office; if the audited entity does not provide comments beyond this period, it will be considered to have agreed with the draft audit report.

4. The audit report of the audit mission shall be sent by the State Audit Office to the audited entity and related agencies as prescribed by the State Auditor General within forty-five days from the date of completing the audit at the audited entity; in special cases, it may be extended, but not exceeding sixty days from the date of completing the audit at the audited entity.

5. The audit report of the local government budget settlement shall be sent to the People's Council and the People's Committee at the same level; for the audit report of the provincial or centrally-administered city government budget settlement, it shall also be sent to the Ministry of Finance.

Article 55. Preparing and submitting the audit report of the state budget settlement and the annual audit report of the State Audit Office

1. The audit report of the state budget settlement is prepared based on the results of auditing the state budget settlement report, the central and local government budget audit results in the year conducted by the State Audit Office.

2. The annual audit report of the State Audit Office is prepared based on the audit report of the state budget settlement and the summary of the audit results in the year conducted by the State Audit Office.

3. The State Audit Office shall be responsible for sending the audit report of the state budget settlement and the annual audit report to the National Assembly, the Standing Committee of the National Assembly, the Ethnic Council, and the Committees of the National Assembly no later than sixteen months after the end of the fiscal year, and simultaneously send them to the President, the Government, and the Prime Minister.

Article 56. Preparing and submitting the special audit report

Based on the nature of the audit mission, the State Audit Office shall prepare and submit the special audit report to the National Assembly, the Standing Committee of the National Assembly, the Ethnic Council, the Committees of the National Assembly, the President, the Government, and the Prime Minister.

Article 57. Checking the implementation of audit conclusions and recommendations

1. The State Audit Office must draft a plan and organize the inspection of the audited entity in implementing fully and promptly the audit conclusions and recommendations regarding financial statement errors and violations of laws; implementing measures to address weaknesses in operations and the results of addressing these weaknesses according to the audit conclusions and recommendations.

2. The implementation of checking the audit conclusions and recommendations shall be carried out in the following forms:

a) Requesting the audited entity to submit a written report on the implementation of audit conclusions and recommendations;

b) Organizing the inspection of the implementation of audit conclusions and recommendations at the audited entity and related organizations and agencies.

PART 6

PUBLIC DISCLOSURE OF AUDIT RESULTS AND IMPLEMENTATION OUTCOMES OF AUDIT RECOMMENDATIONS

Article 58. Public disclosure of annual audit reports and reports on the implementation outcomes of audit conclusions and recommendations

1. The annual audit report and the report on the implementation outcomes of audit conclusions and recommendations of the State Audit Agency, after being submitted to the National Assembly, shall be publicly disclosed in accordance with the provisions of the law.

2. The Chief State Auditor organizes public disclosure of the annual audit report and the report on the implementation outcomes of audit conclusions and recommendations through the following forms:

a) Press conferences;

b) Publication in the Official Gazette and mass media;

c) Posting on the electronic information website and publications of the State Audit Agency.

Article 59. Public disclosure of audit reports from audits

Audit reports from audits, after issuance, shall be publicly disclosed together with financial statements in accordance with the provisions of the State Budget Law and Accounting Law.

PART 7

AUDIT FILES

Article 60. Audit files

1. Each audit must have its file established. An audit file includes:

a) Audit decision;

b) Financial statements and audited budget settlement reports;

c) Audit plan and detailed audit plan;

d) Working logs and documents of state auditors and audit teams;

đ) Explanations from the audited entity;

e) Confirmation records and audit situation of state auditors;

g) Audit minutes;

h) Audit report;

i) Other relevant documents related to the audit.

2. The Chief State Auditor shall specify the details of audit files.

3. Audit files must be stored for a period of twelve months from the date of issuance of the audit report of the audit.

4. The minimum storage period for audit files is twenty years, except as provided in Clause 1 of Article 62 of this Law.

Article 61. Preservation and utilization of audit files

1. Audit files must be fully preserved, safely, and confidentially.

2. Audit files may only be utilized in the following cases:

a) Upon request of the Court, the Prosecutor's Office, investigative agencies, and other agencies as prescribed by law;

b) For appraisal, quality check of audits; resolution of complaints about audit reports, grievances, accusations, planning for subsequent audits, and other requests as decided by the Chief State Auditor.

Article 62. Destruction of audit files

1. Audit files that have exceeded their retention period, if not decided by competent state authorities, shall be destroyed according to the decision of the Chief State Auditor.

2. The Chief State Auditor decides to establish a Committee for the destruction of audit files that have exceeded their retention period. The Committee for the destruction of audit files must conduct an inventory, prepare a list of audit files to be destroyed, and record the destruction of audit files that have exceeded their retention period.

3. The destruction of audit files shall be carried out by burning, cutting, shredding by machine or manually, ensuring that the information and data in the destroyed audit files cannot be reused.

Chapter V

RIGHTS AND OBLIGATIONS OF THE AUDITED ENTITIES

Article 63. Responsibilities of the Ministry of Science and Technology Audited entities

1. Ministries, ministerial-level agencies, government agencies, and other central agencies.

2. Agencies entrusted with the task of collecting and disbursing state budgets at all levels.

3. People's Councils, People's Committees at all levels, and other local agencies.

4. Units under the people's armed forces.

5. Units managing state reserve funds, sectoral reserve funds, and other state financial funds.

6. Political organizations, political-social organizations, political-social-professional organizations, and social-professional organizations using state budget funds.

7. Public service units funded partially or entirely by the state budget.

8. Organizations managing national assets.

9. Project Management Boards with state budget funding or originating from the state budget.

10. Associations, federations, unions, and other organizations supported partially by the state budget for operational activities.

11. State-owned enterprises.

12. In addition to the agencies, organizations, and units specified in Clauses 1 to 11 of this Article, units receiving state subsidies or having state-guaranteed debts that are not state-owned enterprises may hire auditing firms to conduct audits; such auditing firms must perform audits in accordance with national auditing standards and procedures and submit audit reports to the State Audit Agency.

Article 64. Rights of audited entities

1. Request the audit team to present the audit decision, and state auditors to present their auditor identification cards.

2. Refuse to provide irrelevant information and documents; request replacement of audit team members when there is evidence indicating that they lack impartiality while performing duties.

3. Discuss and explain in writing issues raised in draft audit reports if deemed inappropriate.

4. File complaints with the Chief State Auditor regarding the actions of the audit team leader, audit group leader, and other audit team members during the audit process if there is evidence that such actions violate the law; make recommendations to the Chief State Auditor and competent state authorities regarding the assessment, confirmation, conclusion, and audit recommendations if there is evidence that these are contrary to the law.

5. Request the State Audit Agency and state auditors to compensate for damages caused to the audited entity in accordance with the law.

6. Exercise other rights as prescribed by law.

Article 65. Obligations of audited entities

1. Comply with audit decisions.

2. Prepare and submit complete and timely financial statements, project investment settlement reports, revenue and expenditure plans, and reports on budget compliance and settlement to the State Audit Agency as required.

3. Provide complete and timely necessary information and documents for the audit as requested by the State Audit Agency and state auditors, and bear legal responsibility for the accuracy, truthfulness, and objectivity of the provided information and documents.

4. Provide full and timely responses and explanations to issues raised by the Audit Team and State Auditor.

5. The head of the audited unit must sign the audit report.

6. Fully and promptly implement the conclusions and recommendations of the State Audit Agency regarding errors in financial reports and violations of laws; take measures to address weaknesses in operations as concluded and recommended by the State Audit Agency; submit a written report on the implementation of these conclusions and recommendations to the State Audit Agency.

Article 66. Responsibilities for submitting financial reports and final budget settlement reports

1. At the end of the fiscal year, primary budget units at the central level, provincial People's Committees, and centrally-administered city People's Committees shall be responsible for submitting financial reports and final budget settlement reports to the Ministry of Finance in accordance with the provisions of the State Budget Law, while also submitting them to the State Audit Agency.

2. The Ministry of Finance shall be responsible for submitting the final national budget settlement report to the State Audit Agency no later than fourteen months after the end of the fiscal year.

3. The State Treasury shall regularly submit quarterly and annual reports on the execution of budget revenue and expenditure forecasts to the State Audit Agency.

Chapter VI

ENSURING THE OPERATIONS OF THE STATE AUDIT AGENCY

Article 67. Operating funds of the State Audit Agency

1. The State Audit Agency has its own operating funds and is a primary budget unit at the central level. The operating funds of the State Audit Agency are prepared by the State Audit Agency and proposed to the Government for submission to the National Assembly for decision.

2. The management, allocation, and use of the operating funds of the State Audit Agency shall be carried out in accordance with the laws on state budgets.

Article 68. Staffing of the State Audit Agency

The total staffing of the State Audit Agency is determined by the Standing Committee of the National Assembly based on the proposal of the Chief State Auditor.

Article 69. Investment in modernizing state audit activities

The State has policies to invest in developing information technology and other means to ensure the organization and operation of the State Audit Agency, meeting international integration requirements.

Article 70. Treatment for State Audit Agency officials and civil servants

The salary, allowances, and uniforms for State Audit Agency officials and civil servants, and preferential treatment for State Auditors are stipulated by the Standing Committee of the National Assembly.

Article 71. State Auditor Card

1. The State Auditor Card is issued by the Chief State Auditor to State Auditors for use when performing auditing tasks.

2. The format of the State Auditor Card and the rules for using it are stipulated by the Chief State Auditor.

Chapter VII

SUPERVISION OF THE ACTIVITIES OF THE STATE AUDIT AGENCY, HANDLING VIOLATIONS AND SETTLING COMPLAINTS AND REPORTS

Article 72. Supervision of the activities of the State Audit Agency

1. The National Assembly, the Standing Committee of the National Assembly, the Ethnic Council, the Committees of the National Assembly, Delegations of National Assembly Members, and National Assembly Members, within their respective functions, duties, and powers, have the responsibility to supervise the activities and the use of funds of the State Audit Agency.

2. When deemed necessary, the National Assembly may establish a Temporary Committee to study and review the results of the State Audit Agency's activities.

Article 73. Handling violations

1. All acts violating laws on state auditing must be handled promptly and strictly.

2. Investigative agencies, People's Procuratorates, and People's Courts have the responsibility to consider the recommendations of the State Audit Agency to handle violations of law within their jurisdiction.

Article 74. Resolving complaints and reports about state auditing

1. Within thirty days from the date of receipt of the audited unit's comments on the audit report, the Chief State Auditor must examine and resolve the matter; for complex cases, this period may be extended but not exceed forty-five days from the date of receipt of the comments.

2. Complaints and reports and the resolution of complaints and reports about state auditing shall be carried out in accordance with the laws on complaints and reports.

Chapter 8:

IMPLEMENTING PROVISIONS

Article 75. Audit in the Defense and Security Sectors

Based on the provisions of this Law, the Standing Committee of the National Assembly shall stipulate the audit for certain activities within the defense and security sectors.

Article 76. Effectiveness

This Law shall take effect from January 1, 2006.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the eleventh session, seventh meeting, on June 14, 2005.