Circular No. 67/2020/TT-BTC promulgates the Model Internal Audit Regulation applicable to state agencies and public service units.

CIRCULAR

Issuing Model Internal Audit Regulations applicable to state agencies,
concerning the financial autonomy mechanism for public service units

On the basis of the Accounting Law No. 88/2015/QH13 dated November 20, 2015;

On the basis of Government Decree No. 05/2019/NĐ-CP dated January 22, 2019 on internal audit;

On the basis of Government Decree No. 87/2017/NĐ-CP dated July 26, 2017 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Accounting and Auditing Supervision;

The Minister of Finance issues the Model Internal Audit Regulations applicable to state agencies and public service units.

Article 1. Scope of Regulation

This Circular guides the model Internal Audit Regulations as a basis for state agencies and public service units to refer to when establishing their own Internal Audit Regulations.

Article 2. Applicability

1. This Circular applies to state agencies and public service units as specified in Clause 1 and Clause 2, Article 8 and Article 9 of Government Decree No. 05/2019/NĐ-CP dated January 22, 2019 on internal audit.

2. Units not covered by Clause 1 of this Article are encouraged to establish Internal Audit Regulations based on referring to the model Internal Audit Regulations stipulated in the Appendices to this Circular.

Article 3. Internal Audit Regulations

1. The Internal Audit Regulations of the unit must include the minimum contents specified in Clause 1, Article 12 of Government Decree No. 05/2019/NĐ-CP.

2. Units specified in Clause 1, Article 2 of this Circular shall refer to the model Internal Audit Regulations in Appendix 1, Appendix 2, and Appendix 3 of this Circular to establish their Internal Audit Regulations, ensuring compliance with the provisions of Government Decree No. 05/2019/NĐ-CP dated January 22, 2019 on internal audit, current laws, and the organizational structure and operations of the unit.

Article 4. Implementation Organization

1. This Circular takes effect from September 1, 2020.

2. During implementation, if there are difficulties, organizations and individuals are advised to report to the Ministry of Finance (Department of Accounting and Auditing Supervision) for review and guidance.

Appendix No. 01

Issued together with Circular No. 67/2020/TT-BTC dated July 10, 2020 of the Minister of Finance issuing Model Internal Audit Regulations applicable to state agencies and public service units.

MODEL REGULATION

APPLICABLE TO MINISTRIES, GOVERNMENT-LEVEL AGENCIES,
GOVERNMENT-RELATED AGENCIES

REGULATION
INTERNAL AUDIT

(Name of Ministry/Government-Level Agency/Government-Related Agency)

day... month... year...

INTERNAL AUDIT REGULATIONS

(Name of Ministry/Government-Level Agency/Government-Related Agency)

(Issued pursuant to Decision No. ... dated... month... year... of [Minister, Head of Government-Level Agency, Head of Government-Related Agency])

PART I

PROVISIONS

Article 1. Scope of Regulation

This Regulation stipulates the objectives, scope of activities, position, tasks, powers, responsibilities of Internal Audit within the Ministry (name of Ministry/Government-Level Agency/Government-Related Agency) and its relationship with other departments including the scope and method of providing information for audit purposes; including requirements for independence, objectivity, basic principles, requirements for professional qualifications, quality assurance of internal audit, and related matters.

Article 2. Applicability

1. This Regulation applies to internal audit activities in all fields of (name of Ministry/Government-Level Agency/Government-Related Agency).

2. This Regulation applies to the internal audit department, all individuals in the internal audit department of (name of Ministry/Government-Level Agency/Government-Related Agency), and organizations and individuals within (name of Ministry/Government-Level Agency/Government-Related Agency) related to internal audit activities.

Article 3. Explanation of Terms

1. Internal Audit: Internal Audit is the examination, evaluation, and supervision of the adequacy, appropriateness, and effectiveness of internal controls.

2. Internal Audit Department: It is a department, bureau, board, office, or a subordinate unit responsible for internal audit activities of (name of Ministry/Government-Level Agency/Government-Related Agency).

3. Internal Auditor: Is a person performing internal audit work under the internal audit department of (name of Ministry/Government-Level Agency/Government-Related Agency).

4. Internal Audit Manager: Is a person authorized by competent authorities according to the law or according to the regulations of (name of Ministry/Government-Level Agency/Government-Related Agency) to be responsible for internal audit work of (name of Ministry/Government-Level Agency/Government-Related Agency).

5. Related Person of Internal Auditor: Is father, mother, adoptive father, adoptive mother, father-in-law, mother-in-law, father-in-law, mother-in-law, wife, husband, biological child, adopted child, brother, sister, younger brother, brother-in-law, younger brother-in-law, sister-in-law, younger sister-in-law.

Article 4. Objectives of internal audit • • •

Through inspection, evaluation, and advisory activities, internal audit provides independent and objective assurances and recommendations on the following matters:

1. The internal control system established and operated by (name of Ministry/Equivalent Agency/Agency under the Government) to prevent, detect, and address risks of (name of Ministry/Equivalent Agency/Agency under the Government).

2. The management processes and risk management processes of (name of Ministry/Equivalent Agency/Agency under the Government) ensuring efficiency and high performance.

3. The operational objectives and strategic plans, programs, and tasks that (name of Ministry/Equivalent Agency/Agency under the Government) achieves.

Article 5. Position of Internal Audit • • •

1. [Description of the position of the Internal Audit Department within the unit].

Example 1: The internal audit of (name of Ministry/Equivalent Agency/Agency under the Government) is the Internal Audit Department directly under (name of Ministry/Equivalent Agency/Agency under the Government).

Example 2: The internal audit of (name of Ministry/Equivalent Agency/Agency under the Government) is the (name of Department/Office) under the (name of Department/Office) directly under (name of Ministry/Equivalent Agency/Agency under the Government).

Example 3: The internal audit of (name of Ministry/Equivalent Agency/Agency under the Government) is a part of the (name of Department/Office) under the (name of Department/Office) directly under (name of Ministry/Equivalent Agency/Agency under the Government).

2. The Minister/Head of Equivalent Agency/Head of Agency under the Government directly manages the professional aspect of the internal audit department, ensuring its independence from other departments. The Minister/Head of Equivalent Agency/Head of Agency under the Government may delegate administrative management to the Deputy Minister/Deputy Head of Equivalent Agency/Deputy Head of Agency under the Government.

The duties and powers of internal audit of the unit managing the internal audit department are decided by the Minister/Head of Equivalent Agency/Head of Agency under the Government.

3. The person responsible for internal audit reports professionally to the Minister/Head of Equivalent Agency/Head of Agency under the Government and administratively through the direct management level up to the higher level.

4. The Minister/Head of Equivalent Agency/Head of Agency under the Government manages the professional aspect of the internal audit department, including:

a) Issuing and approving the Internal Audit Regulations.

b) Approving the internal audit plan based on risk.

c) Approving the budget for internal audit and resource planning.

d) Receiving reports from the person responsible for internal audit regarding the results of the internal audit department's operations related to the department's plan and other issues.

đ) Approving decisions related to the appointment and dismissal of the person responsible for internal audit.

e) Evaluating and determining whether there are limitations on resources or scope of internal audit that are inappropriate.

5. The person responsible for internal audit reports directly to the Minister (or Head of Equivalent Agency, Head of Agency under the Government) when appropriate.

6. The person responsible for internal audit periodically reports to the Minister (or Head of Equivalent Agency, Head of Agency under the Government) on the purpose, authority, and responsibility, as well as the performance of the internal audit department related to the internal audit department's plan. The report also includes significant risk and control issues, fraud risks, governance issues, and other issues necessary or required by the Minister/Head of Equivalent Agency, Head of Agency under the Government.

7. The details of the content and reporting procedures for internal audit are stipulated in Article 19 of this Regulation.

Article 6. Scope of internal audit

1. Internal audit includes activities providing assurance and independent, objective advice designed to add value and improve the operations of (name of Ministry/Equivalent Agency/Government Agency). Internal audit helps (name of Ministry/Equivalent Agency/Government Agency) achieve its objectives by applying a principled and systematic approach to assess and enhance the effectiveness of risk management processes, control processes, and governance.

2. The scope of internal audit includes but is not limited to reviewing and evaluating the adequacy and effectiveness of governance, risk management, and internal controls, as well as the quality of performance in executing assigned responsibilities and making recommendations for improvement to achieve organizational goals and purposes.

3. The scope of internal audit includes:

a) Providing assurance through reviewing and evaluating the adequacy and effectiveness of governance, risk management, and internal controls to help (name of Ministry/Equivalent Agency/Government Agency) achieve strategic, operational, compliance, and financial objectives:

i. Monitoring and assessing governance processes.

ii. Monitoring and assessing the effectiveness of industry risk management processes.

iii. Assessing risks related to achieving industry strategic objectives.

iv. Evaluating systems established to ensure compliance with policies, plans, procedures, laws, financial regulations, accounting standards, and other regulations that may significantly impact (name of Ministry/Equivalent Agency/Government Agency).

V. Reviewing and confirming the quality and reliability of economic and financial information in financial reports and management accounting reports before approval.

vi. Assessing protective measures for assets and verifying their existence when necessary.

vii. Reporting significant risks and control issues including fraud risks, governance issues, and other issues required or requested by leadership of (name of Ministry/Equivalent Agency/Government Agency).

b) Providing in-depth analyses and recommendations based on data evaluation and processes of (name of Ministry/Equivalent Agency/Government Agency):

i. Assessing the reliability and integrity of industry management information systems and tools used to identify, measure, classify, and report such information.

ii. Analyzing activities or programs to determine if they align with established goals and purposes.

iii. Assessing whether activities or programs are being carried out according to plan.

iv. Assessing the efficiency and performance of resource utilization.

c) Providing independent, objective advice: Conducting advisory activities related to governance, risk management, and internal control processes appropriate to (name of Ministry/Equivalent Agency/Government Agency).

d) Performing pre-audits: Conducted prior to the implementation of projects, programs, or activity plans of audited units, to evaluate the reliability of information and documents, the economy, feasibility, and effectiveness of projects, programs, and activity plans; helping management obtain reliable information to make decisions.

e) Performing concurrent audits: Conducted during the implementation of projects, programs, or activity plans of audited units, to assess progress and quality of implementation; promptly identifying and recommending corrective measures for deficiencies, weaknesses in project, program, and activity plan implementation, ensuring optimal achievement of project and unit activity plan objectives.

f) Performing post-audits: Conducted after the completion of project, program, or activity plan implementation of audited units, to carry out financial audit, compliance audit, and operational audit contents and objectives.

g) Advising subordinate units of (name of Ministry/Equivalent Agency/Government Agency) on selecting, controlling, and using independent audit services to ensure cost-effectiveness.

h) Periodically reporting on the purpose, authority, responsibility, and performance of the internal audit department related to unit plans.

i) Reviewing and evaluating specific activities as requested by leadership of (name of Ministry/Equivalent Agency/Government Agency).

k) Depending on the audit subject, when planning internal audits, both pre-audits, concurrent audits, and post-audits can be combined.

Article 7. Basic Principles of Internal Audit

1. Independence:

a) Persons engaged in internal audit work shall not concurrently undertake tasks that fall within the scope of internal audit. Internal audit shall not be subject to any interference while performing reporting and evaluation duties.

b) Persons engaged in internal audit work shall not audit activities and departments/units for which they have been responsible for implementing operations or managing such departments/units in the last three years.

c) Persons engaged in internal audit work shall not audit activities and departments/units for which related persons have been responsible for implementing operations or managing such departments/units.

2. Objectivity: Persons engaged in internal audit work must ensure objectivity, accuracy, honesty, and fairness during the performance of internal audit tasks.

3. Compliance with laws and accountability under the law for internal audit activities.

Article 8. Professional Standards

1. The internal audit department must comply with legal provisions on internal audit, Ethical Rules and Internal Audit Standards issued by competent state agencies.

2. In addition, the internal audit department will comply with relevant policies and procedures of (name of Ministry/Equivalent Agency/Government Agency) on internal audit, including the internal audit process approved and promulgated by the Minister (or Head of Equivalent Agency, Head of Government Agency).

Article 9. Professional Ethics Principles of Internal Audit

1. Integrity: Persons engaged in internal audit work must perform professional tasks with honesty, diligence, and a sense of responsibility; comply with legal regulations and disclose necessary information as required by law and the professional requirements of internal audit; refrain from illegal activities or engaging in activities that harm the reputation of the profession, the reputation of (name of Ministry/Equivalent Agency/Government Agency).

2. Objectivity: Persons engaged in internal audit work must demonstrate the highest level of professional objectivity in collecting, evaluating, and communicating information about audited activities and processes. Internal audit personnel may provide objective assessments of all relevant situations without being influenced by personal interests or anyone in making judgments and conclusions.

3. Professional Competence and Due Care: Persons engaged in internal audit work apply their knowledge, skills, and experience in internal audit work. At the same time, they act prudently in accordance with applicable professional standards and techniques.

4. Confidentiality: Persons engaged in internal audit work must respect the values and ownership rights of provided information and shall not disclose such information without authorization from competent authorities unless disclosure is part of their professional responsibility or required by law.

5. Professional Standing: Persons engaged in internal audit work must comply with laws and related regulations, avoiding any actions that diminish their professional reputation.

6. The head of internal audit must take measures to monitor, evaluate, and manage to ensure that persons engaged in internal audit work adhere to the professional ethics principles of internal audit.

Article 10. Professional Competence of Internal Auditors

1. The head of internal auditing shall review the scale and complexity of the audit activities as well as the audit work to submit to the Minister (or

Director-General of a ministry at the ministerial level/Director-General of a government agency) for a decision on the necessary resources for the internal audit department. The head of internal auditing shall establish appropriate standards for recruiting personnel for internal audit work.

2. Minimum standards for personnel engaged in internal audit work:

a) Hold a bachelor's degree or higher in relevant fields that meet the requirements of auditing, with comprehensive knowledge that is always up-to-date in areas assigned to perform internal audits.

b) Have at least five years of work experience in the field of study or at least three years of work experience at (name of Ministry/ministry-level agency/government agency) or at least three years of auditing, accounting, or inspection work.

c) Possess general knowledge and understanding of laws and operations of (name of Ministry/ministry-level agency/government agency); have the ability to collect, analyze, evaluate, and synthesize information; possess knowledge and skills in internal auditing.

d) Not have been disciplined with a warning or higher due to management, financial, accounting, or auditing violations, or not be currently serving a disciplinary sentence.

3. The head of internal auditing must have the requisite educational qualifications/specialization and sufficient auditing experience. The head of internal auditing also needs to have in-depth knowledge of business operations and organization, technical skills, communication skills, and other related skills.

4. The head of internal auditing must assess the skills and knowledge of the internal audit department to effectively carry out process audits. If necessary, external experts/advisors may be utilized for certain specialized fields outside the capabilities of the internal audit department (for example, expertise in information technology systems). The head of internal auditing must prepare a plan to use external experts/advisors and report it to the Minister/Director-General of a ministry at the ministerial level/Director-General of a government agency for approval. The head of internal auditing is responsible for internal audit activities related to the results of external experts/advisors.

5. The head of internal auditing is responsible for the audit activities of personnel engaged in internal audit work. The head of internal auditing must ensure that the audit objectives set forth in the approved audit plan are achieved. The head of internal auditing must establish a detailed and reasonable plan to complete each audit (from commencement to issuance of the audit report) after considering the nature and complexity of the audit.

6. Personnel engaged in internal audit work must be trained in the necessary knowledge to perform their duties. Training must be maintained regularly so that all personnel engaged in internal audit work can keep pace with industry developments and improve their professional skills. The head of internal auditing must ensure that personnel engaged in internal audit work are trained through suitable means.

Article 11. Powers of the internal audit unit

1. Shall proactively carry out tasks according to the approved audit plan.

2. Shall be equipped with necessary resources to perform work according to the approved plan.

3. Shall be provided with all necessary and timely information, documents, and files for internal audit activities, such as budget preparation, allocation, and settlement, accounting, and budget settlement of (name of Ministry/Equivalent Agency/Government Agency) and its subordinate units.

4. Shall have access to review all business processes and assets when conducting internal audit.

5. Shall have access to interview all staff members of the unit regarding issues related to the audit content.

6. Shall receive documents, texts, meeting minutes of leaders (name of Ministry/Equivalent Agency/Government Agency) and other relevant functional units for internal audit work.

7. Shall attend internal meetings as prescribed by law or internal regulations of (name of Ministry/Equivalent Agency/Government Agency).

[The unit shall specify certain meetings that the internal audit may attend to ensure that internal audit can fulfill its functions and responsibilities].

8. Shall monitor, evaluate, and follow up on the activities of rectification, improvement, and completion by heads of units and departments concerning issues identified and recommended by the internal audit.

9. Shall be protected from any hostile actions by audited units/departments.

10. Shall be trained to enhance capabilities for internal audit personnel within the internal audit unit.

11. All relevant officers and employees in (name of Ministry/Equivalent Agency/Government Agency) shall support the internal audit unit in fulfilling their roles and responsibilities.

Article 12. Responsibilities of the internal audit unit

1. Shall maintain confidentiality of documents and information in accordance with current laws and regulations and the Internal Audit Charter of (name of Ministry/Equivalent Agency/Government Agency).

2. Shall be accountable to the Minister/Head of Equivalent Agency/Head of Government Agency for the results of internal audit work, evaluations, conclusions, recommendations, and proposals in internal audit reports.

3. Shall promptly monitor, urge, and inspect the implementation of post-audit recommendations by subordinate units and departments of (name of Ministry/Equivalent Agency/Government Agency).

4. Shall organize continuous training to enhance and ensure professional competence for internal audit personnel.

5. Other responsibilities as stipulated by law and the Internal Audit Charter of (name of Ministry/Equivalent Agency/Government Agency).

Article 13. Responsibilities and powers of internal audit personnel

1. Responsibilities:

a) Implement the approved audit plan;

b) Determine sufficient, reliable, appropriate, and useful information for achieving audit objectives;

c) Base conclusions and audit results on suitable analyses and assessments independently and objectively;

d) Retain relevant information to support conclusions and produce audit results;

đ) Shall be responsible for the audit results assigned to them;

e) Maintain confidentiality of information in accordance with legal provisions;

f) Continuously improve professional skills and uphold professional ethics;

g) Other responsibilities as stipulated by law and the Internal Audit Charter of (name of Ministry/Equivalent Agency/Government Agency).

2. Authorities:

a) During the audit process, shall have independent rights to comment, assess, conclude, and recommend on the audited content;

b) Shall have the right to request audited units/departments to provide timely and complete documents and information related to the audit content;

c) Shall reserve opinions in writing within the scope of their assignment;

d) Shall exercise other powers as prescribed by law and the Internal Audit Charter of (name of Ministry/Equivalent Agency/Government Agency).

Article 14 Responsibilities and Authorities of the Internal Audit Manager 1

1. Responsibilities:

a) Manage and direct the internal audit department to perform tasks as prescribed;

b) Ensure that personnel of the internal audit department are regularly trained and have sufficient expertise and professional capacity to carry out their duties;

c) Implement measures to ensure the independence, objectivity, and honesty of internal auditing;

d) Report to the Minister/Head of a ministry at the same level as a ministry, Head of an agency under the Government when discovering weaknesses or issues in the internal control system;

đ) Provide opinions when consulted by the internal audit manager of state-owned enterprises, public service units directly under (name of Ministry/ministry at the same level as a ministry/agency under the Government);

e) Be responsible for the results of internal audits conducted by the internal audit department;

g) Maintain confidentiality in accordance with legal regulations;

h) Other responsibilities as stipulated by law and the internal audit regulation of (name of Ministry/ministry at the same level as a ministry/agency under the Government);

2. Authorities:

a) Propose to the Minister/Head of a ministry at the same level as a ministry, Head of an agency under the Government to promulgate regulations, procedures for internal auditing and methods of internal auditing operations;

b) Have the right to request the participation of individuals from other departments within the unit; have the right to propose hiring experts, consultants to establish the internal audit department, to participate in internal audits when necessary, provided that the independence of internal auditing is maintained;

c) Attend meetings as prescribed internally by the unit and by law;

d) During the conduct of audits, have the right to independently comment, evaluate, conclude, and recommend on matters audited;

đ) Have the right to require the audited department/unit to provide timely and complete documentation and information related to the audit;

e) Reserve opinions in writing regarding the audit results;

g) Exercise other authorities as stipulated by law and the internal audit regulation of (name of Ministry/ministry at the same level as a ministry/agency under the Government);

Article 15 Independence and Objectivity of Internal Auditing

1. The internal audit department shall not be influenced by any factor within the organization, including issues related to the selection of audit subjects, scope, procedures, frequency, timing, or content of reports, to maintain the necessary independence and objectivity.

2. Individuals engaged in internal auditing shall not have responsibility or authority to directly manage any activity being audited. Therefore, individuals engaged in internal auditing shall not perform internal controls, develop processes, install systems, prepare records, or participate in any other activity that may impair their judgment.

3. Individuals engaged in internal auditing shall demonstrate the highest degree of professional objectivity in collecting, evaluating, and communicating information about activities or processes being audited. Individuals engaged in internal auditing shall balance all relevant situations and not be influenced by their own interests or those of others in making judgments.

4. The internal audit manager shall annually commit and confirm to the Minister/Head of a ministry at the same level as a ministry, Head of an agency under the Government regarding the independence of the organization towards the internal audit department.

PART II

INTERNAL AUDIT ACTIVITIES

Article 16 Method of Implementing Internal Audit

The method of implementing internal audit is a risk-oriented audit method, prioritizing resource allocation to audit departments/processes assessed to have high levels of risk.

Article 17 Internal Audit Plan

1. Annually, before the date of ..., the internal audit department will submit the internal audit plan to the Minister/Head of a ministry equivalent to the Government, Head of a government agency for consideration and approval.

2. The internal audit plan shall include the scope of audit, audit subjects, audit objectives, audit content, audit period, audit time, and allocation of resources for the next fiscal year/calendar year.

3. The internal audit plan will be developed based on the priority of risk-oriented audit methods, taking into account the contributions of the Minister/Head of a ministry equivalent to the Government, Head of a government agency, and heads of units/departments under their jurisdiction. The person responsible for internal audit must comprehensively assess risks across all activities, business processes, and units/departments to develop the internal audit plan. The person responsible for internal audit will review and adjust the plan if necessary to address changes in business, risks, operations, programs, systems, and controls of (name of Ministry/ministry equivalent/government agency). Any significant adjustments to the approved internal audit plan will be reported to the Minister/Head of a ministry equivalent to the Government, Head of a government agency for approval.

4. The internal audit department and the inspection agency of (name of Ministry/ministry equivalent/government agency) are responsible for coordinating with each other on matters related to internal audit expertise, risk assessment, and information inputs for developing the internal audit plan.

5. The internal audit department and the inspection agency of (name of Ministry/ministry equivalent/government agency) are responsible for coordinating with each other to avoid overlap in the internal audit plan and inspection plan for the same unit/department under (name of Ministry/ministry equivalent/government agency).

6. The annual internal audit plan must be approved within ... days from the date the person responsible for internal audit submits it to the Minister/Head of a ministry equivalent to the Government, Head of a government agency.

7. The internal audit plan must be sent to the Minister/Head of a ministry equivalent to the Government, Head of a government agency, and Deputy Minister in charge of administration (if applicable), and relevant departments listed in the plan within ... days from the date of approval.

Article 18 Internal Audit Process

The person responsible for internal audit develops a detailed internal audit process suitable for the specific operational characteristics of (name of Ministry/ministry equivalent/government agency), consulting the opinions of heads of units/departments under their jurisdiction before submitting it to the Minister/Head of a ministry equivalent to the Government, Head of a government agency for issuance.

Article 19 Audit Reports and Follow-up on Audit Recommendations

1. Report of Each Internal Audit:

a) The report of each internal audit is prepared by the Head of the Audit Team/Audit Group or the person responsible for the audit. The person responsible for internal audit reviews, approves, and submits it to the Minister/Head of a ministry equivalent to the Government, Head of a government agency within a maximum of ... days after completing the audit (for example, 10 days). The audit report must be signed by the Head of the Audit Team/Audit Group or the person responsible for the audit.

b) The audit report must clearly present: audit content, audit scope; evaluations and conclusions about the audited content and the basis for these opinions; weaknesses, deficiencies, errors, violations, recommendations for corrective measures, and handling of violations; proposals for reasonable improvements to business processes; completion of risk management policies, organizational structure of (name of Ministry/ministry equivalent/government agency) (if applicable).

c) The audit report must include comments from the heads of audited units/departments. In cases where the audited unit/department does not agree with the audit results, the internal audit report must clearly state the disagreement and reasons.

d) After completion, the internal audit report is sent to the Minister/Head of a ministry equivalent to the Government, Head of a government agency, audited units/departments, and relevant departments.

[Specific units detail the reporting process to the Minister/Head of a ministry equivalent to the Government, Head of a government agency. Example: The person responsible for internal audit periodically (quarterly) prepares a summary report of internal audit reports and sends it to the direct supervisor. Then, the direct supervisor reviews and forwards the report to the Minister/Head of a ministry equivalent to the Government, Head of a government agency according to authority and internal reporting procedures of the unit.]

2. Annual Internal Audit Report:

a) At the latest by ... days from the end of the fiscal year (for example, 60 days), the person responsible for internal audit must submit the annual audit report to the Minister/Head of a ministry equivalent to the Government, Head of a government agency.

[Specific units detail the reporting process to the Minister/Head of a ministry equivalent to the Government, Head of a government agency. Example: The person responsible for audit prepares a summary report of the annual internal audit report and sends it to the direct supervisor at the latest by (for example, 45 days) from the end of the fiscal year. Then, the direct supervisor reviews and forwards the report to the Minister/Head of a ministry equivalent to the Government, Head of a government agency according to authority and internal reporting procedures of the unit.]

b) The annual audit report shall minimally include the following contents:

- Proposed audit plan; completed audit work;

- Significant deficiencies and violations identified; recommended corrective actions by internal audit.

- Evaluation of the internal control system related to the audited activities and recommendations for improving the internal control system;

- The implementation status of measures, suggestions, and recommendations from internal audit;

c) The annual audit report must be signed by the person responsible for internal audit;

3. Unusual reports:

In cases where serious violations are discovered or when there is a high risk that may negatively impact the unit's operations, the internal audit department of the unit must immediately report to the Minister/Head of a ministry equivalent to a minister, Head of a government agency. Unusual reports in cases of issues arising during the fiscal year include the following contents:

a) Risk issues that internal audit focuses on and pays attention to;

b) Exposures and occurrences of weaknesses in the internal control system at a particular section;

c) Serious findings requiring guidance and resolution from the Minister/Head of a ministry equivalent to a minister, Head of a government agency;

d) Unusual reports present emerging issues or discoveries along with recommendations for handling them;

[The level of seriousness and high risk is determined by the unit itself.]

4. Checking the implementation of internal audit recommendations:

a) Reviewing and evaluating the time and results of tasks carried out by the audited section/unit according to internal audit recommendations;

b) Reporting the results of checking the implementation of internal audit recommendations to the audited section/unit to the Minister/Head of a ministry equivalent to a minister, Head of a government agency;

[Specifically, the unit shall detail the reporting process to be sent to the Minister/Head of a ministry equivalent to a minister, Head of a government agency. For example, the person responsible for internal audit prepares a summary report of the contents of unusual internal audit reports or reports on the implementation of internal audit recommendations and sends it to the direct supervisor. Then, the direct supervisor reviews and forwards the report to the Minister/Head of a ministry equivalent to a minister, Head of a government agency according to their authority and the internal reporting procedures of the unit];

Article 20. Storage of internal audit reports, files, and documents

Files and documents in each audit must be recorded in writing (paper or electronic) and retained in such a manner that authorized individuals and organizations can access and understand the work and results presented in the audit report;

2. Internal audit reports, files, and documents are stored in accordance with current state regulations and those of (name of Ministry/Ministry Equivalent Agency/Government Agency);

Article 21. Ensuring and Improving the Quality of Internal Audit

1. The internal audit department will maintain a quality assurance and improvement program covering all aspects of the internal audit department;

2. The program will include assessments of the compliance of the internal audit department with internal audit regulations and standards; assessments of adherence to the Code of Ethics for internal auditors. The program also evaluates the effectiveness and performance of the internal audit department and identifies opportunities for improvement;

3. Reassessments of internal audit activities are conducted at the end of each audit and annually by the internal audit department itself to ensure the quality of internal audit activities. If necessary, an independent external assessment by a qualified auditing firm may be engaged every five years;

4. The head of internal audit will report to the Minister/Head of a ministry equivalent to a minister, Head of a government agency on the quality assurance and improvement program for internal audit, including the results of annual internal assessments and external assessments (if any).

Chapter m

RESPONSIBILITIES OF THE PARTIES REGARDING INTERNAL AUDIT

Article 22: Responsibilities of the Minister/Head of a Ministry-Equivalent Agency, Head of a Government Agency

1. Issuing internal audit regulations of (name of the Ministry/Ministry-Equivalent Agency/Government Agency),

2. Appointing and dismissing the person in charge of internal audit and other positions within internal audit.

3. Creating favorable conditions to ensure that the internal audit department can fulfill its tasks.

4. Approving the annual internal audit plan and internal audit report.

5. Deciding and approving the implementation of internal audit recommendations; directing departments to implement internal audit recommendations; taking timely measures when there are internal audit recommendations or proposals.

Article 23. Responsibilities of Heads of Departments/Units Subordinate to (Name of the Ministry/Ministry-Equivalent Agency/Government Agency)

1. Creating favorable conditions for internal audit to perform assigned tasks and directing departments to cooperate with internal audit according to the internal audit regulations.

2. Urging departments to implement agreed recommendations with the internal audit department or as directed by the Minister/Head of a Ministry-Equivalent Agency, Head of a Government Agency, and informing the internal audit department about the implementation of agreed recommendations.

3. Ensuring that the internal audit department is fully informed about changes and new issues arising in the operation of the department/unit to identify related risks early.

4. Implementing approved internal audit recommendations; taking timely measures when there are internal audit recommendations or proposals.

Article 24. Responsibilities of Audited Departments/Units

1. Providing complete information, documents, and files necessary for the work of internal audit truthfully and accurately as required by the internal audit department without concealing information.

2. Immediately notifying the internal audit department upon discovering weaknesses, existing issues, violations, significant risks, or asset losses, or the risk of asset loss.

3. Implementing agreed recommendations with the internal audit department or as directed by the Minister/Head of a Ministry-Equivalent Agency, Head of a Government Agency.

4. Creating the most favorable conditions for the internal audit department to achieve maximum efficiency.

PART IV

IMPLEMENTING PROVISIONS

Article 25. Effective Date

This regulation takes effect from the date of...

Article 26. Amendment, Supplement, and Replacement of the Regulation

1. The person in charge of internal audit is responsible for periodically reviewing this regulation and proposing necessary amendments, supplements, or replacements.

2. Amendments, supplements, or replacements of this regulation shall be decided by the Minister/Head of a Ministry-Equivalent Agency, Head of a Government Agency.

Article 27. Implementation Organization

Heads of units and organizations, individuals subordinate to (Name of the Ministry/Ministry-Equivalent Agency/Government Agency) are responsible for implementing this regulation.

Appendix 02

Issued together with Circular No. 67/2020/TT-BTC dated July 10, 2020, issued by the Minister of Finance on the Model Internal Audit Regulation applicable to state agencies and public service organizations

MODEL REGULATION

APPLICABLE TO PUBLIC SERVICE ORGANIZATIONS

REGULATION
INTERNAL AUDIT

(Name of Public Service Organization)

. . ON THE DATE... MONTH... YEAR 20..

INTERNAL AUDIT REGULATION

(Name of Public Service Organization)

(Issued pursuant to Decision No... dated... MONTH... YEAR of the Head (Name of Public Service Organization)

PART I

PROVISIONS

Article 1. Scope of Application

This regulation stipulates the objectives, scope of activities, position, duties, powers, responsibilities of the internal audit of (Name of Public Service Organization), and the relationship with other departments including the scope and method of providing information for auditing; including requirements for independence, objectivity, basic principles, requirements for professional qualifications, ensuring the quality of internal audit, and other relevant contents.

Article 2. Applicability

1. This regulation applies to the internal audit activities of (Name of Public Service Organization).

2. This regulation applies to the internal audit department, all individuals of the internal audit department of (Name of Public Service Organization), and organizations and individuals within (Name of Public Service Organization) related to internal audit activities.

Article 3. Explanation of Terms

1. Internal audit: Internal audit is the examination, evaluation, and supervision of the completeness, appropriateness, and effectiveness of internal controls.

2. Head refers to the person in charge of (Name of Public Service Organization).

3. Internal audit department: It is a division, office, or unit directly under the division/office responsible for internal audit activities of (Name of Public Service Organization).

4. Internal auditor: Is a person performing internal audit work belonging to the internal audit department of (Name of Public Service Organization).

5. Person in charge of internal audit: Is the person authorized by competent authority in accordance with the law or according to the regulations of (Name of Public Service Organization) to be responsible for internal audit work of (Name of Public Service Organization).

6. Related persons of internal auditors: Are father, mother, foster father, foster mother, father-in-law, mother-in-law, father-in-law, mother-in-law, wife, husband, son, daughter, foster son, foster daughter, brother, sister, younger brother, younger sister, brother-in-law, sister-in-law.

Article 4. Objectives of internal audit • • •

Through inspection, evaluation, and advisory activities, internal audit provides independent and objective assurances and recommendations on the following matters:

1. The internal control system of (Name of Unit) has been established and operated appropriately to prevent, detect, and handle risks of (Name of Unit).

2. Management processes and risk management processes of (Name of Unit) ensure efficiency and high performance.

3. Operational goals and strategic, planning, and task objectives achieved by (Name of Unit).

Article 5. Position of Internal Audit • • •

1. The internal audit unit shall be established by the Head (Name of the Public Service Institution) through a decision. The Head (Name of the Public Service Institution) directly manages the functional (specialized) aspects of the internal audit unit, ensuring its independence in terms of specialization from other units. The Head (Name of the Public Service Institution) may delegate administrative management issues of the internal audit unit to the Deputy Head (Name of the Public Service Institution).

[The Head (Name of the Public Service Institution) decides to establish the internal audit unit in the form of a board, department, or a unit subordinate to the department/board located at the Office (Name of the Public Service Institution) or an equivalent unit according to management requirements.]

Example:

- The internal audit of Hospital (name of hospital) is the Internal Audit Department under the Hospital Management Board], or

- The internal audit of Hospital (name of hospital) is a unit subordinate to the Planning and Synthesis Department of the hospital].

2. The person responsible for internal audit shall report functionally (specialized) to the Head (Name of the Public Service Institution) and administratively (for example, daily operations) to the Deputy Head (Name of the Public Service Institution).

3. The Head (Name of the Public Service Institution) manages the specialized aspects of the internal audit unit including:

a) Issuing and approving the Internal Audit Regulations.

b) Approving the internal audit plan based on risk.

c) Approving the budget for internal audit and resource planning.

d) Receiving reports from the person responsible for internal audit regarding the results of the internal audit department's operations related to the department's plan and other issues.

d) Approving decisions related to the appointment and removal of the person responsible for internal audit.

e) Approving the remuneration level of the person responsible for internal audit.

g) Evaluating and determining whether there are limitations on resources or the scope of internal audit that are inappropriate.

4. The person responsible for internal audit shall report and communicate directly with the Head (Name of the Public Service Institution) when appropriate.

5. The person responsible for internal audit shall periodically report to the Head (Name of the Public Service Institution) on the purpose, authority, and responsibility, as well as the performance of the internal audit unit related to the internal audit unit's plan. The report will also include significant risk and control issues, fraud risks, governance issues, and other matters required by the Head (Name of the Public Service Institution).

6. The details of the content and reporting procedures for internal audit are stipulated in Article 19 of this Regulation.

Article 6. Scope of Internal Audit

1. Internal audit includes activities providing independent and objective assurance and consulting designed to add value and improve the effectiveness of (Name of the Public Service Institution)'s operations. Internal audit helps (Name of the Public Service Institution) achieve its objectives by applying principled and systematic approaches to assess and enhance the effectiveness of risk management processes, control processes, and governance.

2. The scope of internal audit includes, but is not limited to, reviewing and evaluating the adequacy and effectiveness of governance, risk management, and internal control, as well as the quality and efficiency of the execution of assigned responsibilities, and recommending improvements to achieve the objectives and purposes of (Name of the Public Service Institution).

3. The scope of internal audit includes:

a) Providing assurance through reviewing and evaluating the adequacy and effectiveness of governance, risk management, and internal control to help (Name of the Public Service Institution) achieve strategic, operational, compliance, and financial goals:

i. Monitoring and assessing governance processes.

ii. Monitoring and assessing the effectiveness of (Name of the Public Service Institution)'s risk management processes.

iii. Assessing risks related to achieving (Name of the Public Service Institution)'s strategic objectives.

iv. Assessing systems established to ensure compliance with policies, plans, procedures, laws, financial regulations, accounting standards, and other relevant regulations that may significantly impact (Name of the Public Service Institution).

V. Reviewing and confirming the quality and reliability of economic and financial information in financial reports and management accounting reports before submission for approval.

vi. Assessing protective measures for assets and, when necessary, verifying the existence of such assets.

vii. Reporting significant risks and control issues, including fraud risks, governance issues, and other matters required by the Head (Name of the Public Service Institution).

b) Providing in-depth analyses and recommendations based on data evaluation and processes of (Name of the Public Service Institution):

i. Evaluating the reliability and integrity of management information systems and tools used to identify, measure, classify, and report such information.

ii. Analyzing activities or programs to determine if they align with established goals and purposes.

iii. Evaluating whether activities or programs have been implemented according to plans.

iv. Assessing the efficiency and performance of resource utilization.

c) Providing independent and objective advice: Conducting advisory activities related to governance, risk management, and internal control processes consistent with (Name of the Public Service Institution).

d) Performing pre-audits: Conducted prior to the implementation of projects, programs, or activity plans of audited units, to evaluate the reliability of information and documents, the economy, feasibility, and effectiveness of projects, programs, and activity plans; helping management obtain reliable information to make decisions.

d) Performing concurrent audits: Conducted while the projects, programs, and operational plans of the audited unit/department are ongoing, aiming to evaluate progress and quality of implementation; promptly identifying and recommending corrective measures for discrepancies, deficiencies, and weaknesses in project, program, and operational plan implementation, to ensure optimal achievement of project and plan objectives of the audited unit/department.

e) Performing post-audits: Conducted after the completion of project, program, and operational plan implementation of the audited unit/department, aimed at implementing financial audit, compliance audit, and operational audit contents and objectives for the audited unit/department's activities.

g) Advising (Name of the Public Service Institution) on selecting and controlling the use of independent audit services to ensure cost-effectiveness.

h) Periodically reporting on the purpose, authority, responsibility, and performance of the internal audit unit related to the unit's plan.

i) Reviewing and evaluating specific activities as requested by leadership (Name of the Public Service Institution).

k) Depending on the audit object, when planning internal audit, it may combine pre-audit, concurrent audit, and post-audit.

Article 7. Basic Principles of Internal Audit

1. Independence:

a) Persons engaged in internal audit shall not concurrently undertake tasks within the scope of internal audit. Internal audit shall not be subject to any interference while performing duties, reporting, and evaluating.

b) Persons engaged in internal audit work shall not audit activities and departments/units for which they have been responsible for implementing operations or managing such departments/units in the last three years.

c) Persons engaged in internal audit shall not participate in auditing activities and departments/units where persons related to such persons engaged in internal audit are responsible for implementing activities or managing departments/units.

2. Objectivity: Persons engaged in internal audit work must ensure objectivity, accuracy, honesty, and fairness during the performance of internal audit tasks.

3. Compliance with laws and accountability under the law for internal audit activities.

Article 8. Professional Standards

1. The internal audit department must comply with legal regulations on internal audit, Core Principles for Internal Audit Practice, Code of Ethics, and Internal Audit Standards issued or announced by competent state agencies.

2. In addition, the internal audit department will comply with relevant policies and procedures of (Name of Public Service Institution) regarding internal audit, including the internal audit process approved and promulgated by the Head of (Name of Public Service Institution).

Article 9. Professional Ethics Principles of Internal Audit

1. Integrity: Persons engaged in internal audit must perform their professional work with honesty, diligence, and a sense of responsibility; comply with legal provisions and disclose necessary information as required by law and the professional requirements of internal audit; shall not engage in illegal activities or activities that harm the reputation of the profession or the reputation of (Name of Public Service Institution).

2. Objectivity: Persons engaged in internal audit must demonstrate the highest level of professional objectivity in collecting, evaluating, and exchanging information about audited activities and processes. Persons engaged in internal audit shall provide objective assessments of all relevant situations and shall not be influenced by personal interests or anyone in making judgments and conclusions.

3. Professional Competence and Due Care: Persons engaged in internal audit work apply their knowledge, skills, and experience in internal audit work. At the same time, they act prudently in accordance with applicable professional standards and techniques.

4. Confidentiality: Persons engaged in internal audit work must respect the values and ownership rights of provided information and shall not disclose such information without authorization from competent authorities unless disclosure is part of their professional responsibility or required by law.

5. Professional Standing: Persons engaged in internal audit work must comply with laws and related regulations, avoiding any actions that diminish their professional reputation.

6. The person in charge of internal audit must take measures to monitor, evaluate, and manage to ensure that persons engaged in internal audit adhere to the ethical principles of the internal audit profession.

Article 10. Professional Competence of Internal Auditors

1. The person in charge of internal audit considers the scale and complexity of the audit activity and audit work to present to the Head of (Name of Public Service Institution) for decision on the necessary resources for the internal audit department. The person in charge of internal audit establishes appropriate standards for recruiting persons engaged in internal audit.

2. Minimum standards for persons engaged in internal audit:

a) Hold a bachelor's degree or higher in relevant fields that meet the requirements of auditing, with comprehensive knowledge that is always up-to-date in areas assigned to perform internal audits.

b) Having at least five years of work experience in the field of education or at least three years of work experience at (Name of Public Service Institution) or at least three years of experience in auditing, accounting, or inspection.

c) Possessing general knowledge and understanding of laws and operations of (Name of Public Service Institution), having the ability to collect, analyze, evaluate, and synthesize information; possessing knowledge and skills in internal audit.

d) Not having been disciplined with a warning or higher due to economic, financial, accounting management violations, or not currently serving a disciplinary punishment period.

3. The person in charge of internal audit needs to have the appropriate academic qualifications/expertise and full auditing experience. The person in charge of internal audit

8. Is entitled to attend internal meetings as prescribed by law or internal regulations of (Name of Public Service Institution).

[The unit specifies some meetings that internal audit may attend to ensure that internal audit fulfills its functions and responsibilities. For example: regular meetings of (Name of Public Service Institution)].

9. Is entitled to monitor, evaluate, and follow up on the corrective actions taken by heads of units/departments regarding issues identified and recommended by internal audit.

10. Is protected from any non-cooperative actions by the audited department/unit; Is trained to enhance the capabilities of personnel in the internal audit department.

11. All staff members in (Name of Public Service Institution) have the responsibility to support the internal audit department in fulfilling their roles and responsibilities.

Article 12. Responsibilities of the internal audit department

1. Must keep confidential documents and information in accordance with current laws and regulations of (Name of public service institution).

2. Shall be responsible to the Head of (Name of public service institution) for the results of internal audit work, for assessments, conclusions, recommendations, and proposals in internal audit reports.

3. Must promptly monitor, urge, and check the implementation results of recommendations following audits from departments/units under (Name of public service institution).

4. Organize continuous training to enhance and ensure the professional capacity of those engaged in internal audit work.

5. Other responsibilities as prescribed by law and the internal audit regulations of (Name of public service institution).

Article 13. Responsibilities and authorities of persons engaged in internal audit work

1. Responsibilities:

a) Implement the approved audit plan;

b) Determine sufficient, reliable, appropriate, and useful information for achieving audit objectives;

c) Base on appropriate analyses and evaluations to draw conclusions and audit results independently and objectively;

d) Retain relevant information to support conclusions and produce audit results;

đ) Shall be responsible for the audit results assigned to them;

e) Maintain confidentiality of information in accordance with legal provisions;

f) Continuously improve professional skills and uphold professional ethics;

h) Other responsibilities as prescribed by law and the internal audit regulations of (Name of public service institution).

2. Authorities:

a) During the audit process, shall have independent rights to comment, assess, conclude, and recommend on the audited content;

b) Have the right to request departments/units being audited to provide timely and complete documents and information related to the audit content;

c) Shall reserve opinions in writing within the scope of their assignment;

d) Exercise other authorities as prescribed by law and the internal audit regulations of (Name of public service institution).

Article 14. Responsibilities and authorities of the person in charge of internal audit

1. Responsibilities

a) Manage and direct the internal audit department to perform tasks as prescribed;

b) Ensure that personnel of the internal audit department are regularly trained and have sufficient expertise and professional capacity to carry out their duties;

c) Implement measures to ensure the independence, objectivity, and honesty of internal audit;

d) Report to the Head of (Name of public service institution) when discovering weaknesses and issues in the internal control system;

đ) Be responsible for the audit results conducted by the internal audit department;

e) Maintain confidentiality of information in accordance with legal provisions;

g) Other responsibilities as prescribed by law and the internal audit regulations of (Name of public service institution).

2. Authorities:

a) Propose to the Head of (Name of public service institution) to issue internal audit regulations, procedures, and internal audit business methods;

b) May propose to convene personnel from other departments of the unit; may propose to hire experts, consultants to establish the internal audit department of (Name of public service institution), participate in internal audits when necessary, provided that the independence of internal audit is maintained;

c) Attend meetings as prescribed internally by the unit and by law;

d) During the conduct of audits, have the right to independently comment, evaluate, conclude, and recommend on matters audited;

đ) Have the right to request departments/units being audited to provide timely and complete documents and information related to the audit content;

e) Reserve opinions in writing regarding the audit results;

g) Exercise other authorities as prescribed by law and the internal audit regulations of (Name of public service institution).

Article 15 Independence and Objectivity of Internal Auditing

The internal audit department shall not be interfered with by any factor within the organization, including issues regarding audit selection, scope, procedures, frequency, timing, or report content, to allow the maintenance of the necessary independent and objective spirit.

1. Persons engaged in internal audit work shall not have responsibility or authority to directly operate any activity being audited. Accordingly, persons engaged in internal audit work shall not perform internal controls, develop processes, install systems, prepare records, or participate in any other activity that could reduce the judgment of persons engaged in internal audit work.

2. Persons engaged in internal audit work shall demonstrate the highest level of professional objectivity in collecting, evaluating, and communicating information about activities or processes being audited. Persons engaged in internal audit work shall evaluate all relevant situations fairly and not be influenced by their own interests or those of others in making judgments.

3. The head of internal audit annually commits and confirms to the Head of (Name of public service institution) on the independence of the organization towards the internal audit department.

PART II
INTERNAL AUDIT ACTIVITIES

Article 16. Method of Implementing Internal Audit

The method of implementing internal audit is a risk-oriented audit approach, prioritizing the allocation of resources to audit departments/processes assessed to have high levels of risk.

Article 17. Internal Audit Plan

1. Annually, before the date...of the month, the internal audit department will submit the internal audit plan to the Head (Name of Public Service Institution) for review and approval.

2. The internal audit plan will include the scope of audit, audit subjects, audit objectives, audit time, and the distribution of resources for the next fiscal/year.

3. The internal audit plan will be developed based on the priority of risk-oriented audit methods, taking into account the opinions of the Head (Name of Public Service Institution) and the heads of subordinate departments/units (Name of Public Service Institution). The person responsible for internal audit must assess the overall risks of all activities, business processes, units/departments to develop the internal audit plan. The person responsible for internal audit will review and adjust the plan if necessary, to address changes in business, risks, operations, programs, systems, and controls of (Name of Public Service Institution). Any significant adjustments from the approved internal audit plan will be reported to the Head (Name of Public Service Institution) for approval.

4. The internal audit department and the inspection department of (Name of Public Service Institution) are responsible for coordinating with each other on internal audit technical issues, risk assessments, and information inputs for developing the internal audit plan. The inspection department includes the inspection/audit room/function of (Name of Public Service Institution), or the inspection of the state management agency of (Name of Public Service Institution).

5. The internal audit department and the inspection department are responsible for coordinating with each other to avoid overlap in the audit and inspection plans for the same subordinate department/unit (Name of Public Service Institution).

6. The annual internal audit plan must be approved within the period of . ế. days from the date the person responsible for internal audit submits it to the Head (Name of Public Service Institution).

7. The internal audit plan must be sent to the Head (Name of Public Service Institution) and the Deputy Head in charge of administration (if any) and the departments named in the plan within the period of ... days from the date of approval.

Article 18 Internal Audit Process

The person responsible for internal audit develops detailed audit procedures suitable for the specific activities of (Name of Public Service Institution), consulting the opinions of the heads of subordinate departments/units (Name of Public Service Institution) before submitting them to the Head (Name of Public Service Institution) for issuance.

Article 19. Audit Reports and Follow-up on Audit Recommendations

1. Report of Each Internal Audit:

a) Each internal audit report is prepared by the Head of the Audit Team/Group or the person responsible for the audit. The person responsible for internal audit reviews, approves, and submits the report to the Head (Name of Public Service Institution) within a maximum of ... days after completing the audit (for example, 10 days). The audit report must be signed by the Head of the Audit Team/Group or the person responsible for the audit.

b) The audit report must clearly present: the content audited, the scope of the audit; evaluations and conclusions about the audited content and the basis for these opinions; weaknesses, existing issues, errors, violations, recommendations for corrective measures and handling violations; proposals for rationalization and improvement of business processes; completion of risk management policies and organizational structure of (Name of Public Service Institution) (if applicable).

c) The audit report must include the opinions of the heads of the audited departments/units. In cases where the audited department/unit does not agree with the audit results, the internal audit report must clearly state the non-agreement of the audited department/unit and the reasons.

d) After completion, the internal audit report is sent to the Head (Name of Public Service Institution), the audited department/unit, and related departments.

[The institution specifies the reporting process to the Head. For example: The person responsible for internal audit periodically (quarterly) prepares a summary report of the contents of internal audit reports and sends it to the direct supervisor. Then, the direct supervisor reviews and sends the report to the Head according to their authority and the internal reporting process of the institution.]

2. Annual Internal Audit Report:

a) At the latest...days from the end of the fiscal year (for example, 60 days), the person responsible for internal audit must submit the annual audit report to the Head (Name of Public Service Institution).

[The institution specifies the reporting process to the Head. For example: The person responsible for internal audit prepares a summary report of the annual internal audit report and sends it to the direct supervisor at the latest... (for example, 45 days) from the end of the fiscal year. Then, the direct supervisor reviews and sends the report to the Head according to their authority and the internal reporting process of the institution.]

b) The annual internal audit report must minimally include the following contents:

- Proposed audit plan; completed audit work;

- Significant deficiencies and violations identified; recommended corrective actions by internal audit.

- Evaluation of the internal control system related to the audited activities and recommendations to improve the internal control system;

- Evaluation of public service revenues and expenditures;

- The implementation status of measures, suggestions, and recommendations from internal audit;

c) The annual internal audit report must be signed by the person responsible for internal audit.

3. Unusual reports:

In case of serious violations or when there is a high risk that may adversely affect the institution's operations, the internal audit department of the institution must immediately report to the Head (Name of Public Service Institution). Unusual reports in case of issues arising during the fiscal year:

a) Risk issues that internal audit focuses on and pays attention to;

b) Exposure or occurrence of weaknesses in the internal control system in a department.

c) Serious findings requiring guidance and resolution by the Head (Name of Public Service Institution).

d) An unusual report presenting issues that arise or are discovered along with recommendations for handling.

[The level of severity and high risk is determined by the unit itself.]

4. Review the implementation of internal audit recommendations.

a) Examine and evaluate the time and results of work carried out by the audited department/unit according to the internal audit recommendations.

b) Report the results of reviewing the implementation of internal audit recommendations to the Head (Name of Public Service Institution).

[The unit specifies the reporting process to be sent to the Head. For example: The person responsible for internal audit prepares a summary report on the content of internal audit unusual reports or reports on the implementation of internal audit recommendations and submits it to the direct supervisor. Then, the direct supervisor reviews and sends the report to the Head according to the regulations and reporting procedures stipulated internally by the unit.]

Article 20. Archiving internal audit reports, files, and documents:

1. Files and documents in each audit must be recorded in writing (paper or electronic), retained in a manner that allows authorized individuals and organizations to access and understand the work and results presented in the audit report.

2. Internal audit reports, files, and documents must be retained in accordance with current state regulations and those of (Name of Public Service Institution).

Article 21. Ensuring and Improving the Quality of Internal Audit

1. The internal audit department will maintain a quality assurance and improvement program covering all aspects of the internal audit department;

2. The program will include an assessment of the compliance of the internal audit department with internal audit regulations and standards; an evaluation of adherence to the Code of Ethics for internal auditors. The program also assesses the effectiveness and efficiency of the internal audit department and identifies opportunities for improvement.

3. Re-evaluation of internal audit activities is conducted at the end of each audit and annually by the internal audit department itself to ensure the quality of internal audit activities. In necessary cases, the internal audit department may engage an independent external auditing firm to conduct an evaluation every five years.

4. The head of internal audit will report to the Head (Name of Public Service Institution) on the program to ensure and improve the quality of the internal audit department, including annual internal evaluation results and external evaluations (if any).

CHAPTER III

AT (Name of Public Service Institution)

Article 22: Responsibilities of the Head (Name of Public Service Institution)

1. Enactment of the internal audit regulations of (Name of Public Service Institution)

2. Decision on the organizational structure of the internal audit; appointment and dismissal of the head of internal audit and other positions within the internal audit.

3. Creating favorable conditions to ensure that the internal audit department can fulfill its tasks.

4. Approval of the internal audit plan, annual internal audit reports.

5. Deciding and approving the implementation of internal audit recommendations; directing departments to implement internal audit recommendations; taking timely measures when there are internal audit recommendations or proposals.

6. Determination of salary, bonus, and allowances for the internal audit department.

Article 23. Responsibilities of the heads of departments/units under (Name of Public Service Institution)

1. Create favorable conditions for the internal audit to carry out assigned tasks and instruct departments to cooperate with internal audit according to the internal audit regulations.

2. Urge departments to implement recommendations agreed upon with the internal audit department or as directed by the Head (Name of Public Service Institution), and inform the internal audit department about the implementation of such recommendations.

3. Ensuring that the internal audit department is fully informed about changes and new issues arising in the operation of the department/unit to identify related risks early.

4. Implement approved recommendations from the internal audit department; take timely measures when there are recommendations or proposals from the internal audit department.

Article 24. Responsibilities of the audit unit/department

1. Providing complete information, documents, and files necessary for the work of internal audit truthfully and accurately as required by the internal audit department without concealing information.

2. Immediately notify the internal audit department upon discovering weaknesses, issues, violations, risks, significant losses of assets, or the risk of asset loss.

3. Implement recommendations agreed with the internal audit department or as directed by the Head (Name of the Public Service Unit).

4. Creating the most favorable conditions for the internal audit department to achieve maximum efficiency.

PART IV
ARTICLE IMPLEMENTATION

Article 25. Effective Date of Implementation

This Regulation shall take effect from the date of... month... year...

Article 26. Amendment, Supplement, and Replacement of the Regulation

1. The person responsible for internal audit shall periodically review this Regulation and propose necessary amendments, supplements, or replacements.

2. Amendments, supplements, or replacements to this Regulation shall be decided by the Head (Name of the Public Service Unit).

Article 27. Implementation Organization

Heads of units/departments and organizations/persons under (Name of the Public Service Unit) shall be responsible for implementing this Regulation.

ANNEX 03

(Issued together with Circular No. 67/2020/TT-BTC dated July 10, 2020, issued by the Minister of Finance on the Model Internal Audit Regulations applicable to state agencies and public service units)

MODEL REGULATION

APPLICABLE TO PROVINCE/CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT

REGULATIONS
INTERNAL AUDIT

(Name of the Province/City People's Committee under the Central Government)

day... month... year 20.

INTERNAL AUDIT REGULATIONS

(Name of the Province/City People's Committee under the Central Government)

(Issued pursuant to Decision No... dated... month... year... of the Chairman (Name of the Province/City People's Committee under the Central Government))

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Regulation stipulates the objectives, scope of activities, position, tasks, powers, responsibilities of the Internal Audit at (Name of the Province/City People's Committee under the Central Government), and its relationship with other departments including the scope and method of providing information for auditing purposes; it includes requirements for independence, objectivity, basic principles, professional qualifications, quality assurance of internal audit, and related contents.

Article 26. Applicability

1. This Regulation applies to internal audit activities at (Name of the Province/City People's Committee under the Central Government), specialized agencies under (Name of the Province/City People's Committee under the Central Government), and subordinate public service units under (Name of the Province/City People's Committee under the Central Government).

2. This Regulation applies to the internal audit department, all individuals within the internal audit department of (Name of the Province/City People's Committee under the Central Government), and organizations/persons within (Name of the Province/City People's Committee under the Central Government) related to internal audit activities.

Article 3. Explanation of Terms

1. Internal Audit: Internal audit is the examination, evaluation, and supervision of the adequacy, appropriateness, and effectiveness of internal controls.

2. Internal Audit Department: It is a division, office, or department directly under the division/office responsible for internal audit activities of (Name of the Provincial/City People's Committee under the Central Government).

3. Internal Auditor: An individual performing internal audit work within the internal audit department of (Name of the Provincial/City People's Committee under the Central Government).

4. Internal Audit Manager: An individual designated by the competent authority in accordance with the law or by (Name of the Provincial/City People's Committee under the Central Government) to oversee internal audit work at (Name of the Provincial/City People's Committee under the Central Government).

5. Related Party of the Internal Auditor: Father, mother, adoptive father, adoptive mother, father-in-law, mother-in-law, husband's father, husband's mother, wife's father, wife's mother, spouse, children, adopted children, full brother, full sister, younger brother, younger sister, brother-in-law, sister-in-law.

Article 4. Objectives of internal auditing • • *

Through inspection, evaluation, and advisory activities, internal auditing provides independent and objective assurances and recommendations on the following matters:

1. The internal control system of (Name of Provincial People's Committee) has been established and operated appropriately to prevent, detect, and address risks of (Name of Provincial People's Committee).

2. The governance processes and risk management processes of (Name of Provincial People's Committee) ensure efficiency and high performance.

3. The operational objectives and strategic goals, plans, and tasks accomplished by (Name of Provincial People's Committee).

Article 5. Position of Internal Audit • • •

1. The internal audit department is established by the Chairman of (Name of Provincial People's Committee) through a decision. The Chairman of (Name of Provincial People's Committee) directly manages the professional aspect of the internal audit department, ensuring its professional independence from other departments. The Chairman of (Name of Provincial People's Committee) may delegate administrative management of the internal audit department to the Vice Chairman of (Name of Provincial People's Committee).

[Within their authority, the Chairman of (Name of Provincial People's Committee) decides to establish the internal audit department in the form of a board, office, or department under the Office of the People's Committee or the Department, depending on management requirements.

Example: The internal audit of the People's Committee of (name of city) is the Internal Audit Board under the Inspectorate of (name of city).]

2. The head of the internal audit department will report professionally to the Chairman of (Name of Provincial People's Committee) and administratively (for example, daily operations) to the Vice Chairman of (Name of Provincial People's Committee).

3. The Chairman of (Name of Provincial People's Committee) manages the professional aspects of the internal audit department including:

a) Issuing and approving the Internal Audit Regulations.

b) Approving the internal audit plan based on risk.

c) Approving the budget for internal audit and resource planning.

d) Receiving reports from the person responsible for internal audit regarding the results of the internal audit department's operations related to the department's plan and other issues.

d) Approving decisions related to the appointment and removal of the person responsible for internal audit.

e) Approving the remuneration level of the person responsible for internal audit.

g) Evaluating and determining whether there are limitations on resources or the scope of internal audit that are inappropriate.

4. The head of the internal audit department will report and communicate directly with the Chairman of (Name of Provincial People's Committee) when appropriate.

5. The head of the internal audit department will periodically report to the Chairman of (Name of Provincial People's Committee) on the purpose, authority, and responsibilities, as well as the performance of the internal audit department related to the department's plan. The report also includes significant issues regarding risks and controls, including fraud risks, governance issues, and other necessary or requested issues by the Chairman of (Name of Provincial People's Committee).

6. The details of the content and reporting procedures for internal audit are stipulated in Article 19 of this Regulation.

Article 6. Scope of internal auditing

1. Internal auditing includes activities providing independent and objective assurance and advice designed to add value and improve the operations of (Name of Provincial People's Committee). Internal auditing helps (Name of Provincial People's Committee) achieve its objectives by applying a principled and systematic approach to assess and enhance the effectiveness of risk management processes, control processes, and governance.

2. The scope of internal auditing includes but is not limited to reviewing and evaluating the completeness and effectiveness of governance, risk management, and internal control, as well as the quality of performance in implementing assigned responsibilities and making recommendations for improvement to achieve the objectives and purposes of (Name of Provincial People's Committee).

3. In accordance with Clause 2, Article 8 of Decree 05/2019/NĐ-CP, internal auditing will be conducted at the people's committee (name of province, centrally governed city), specialized agencies under the people's committee (name of province, centrally governed city), and affiliated public institutions of (Name of Provincial People's Committee).

4. The scope of internal auditing

a) Providing assurance through the review and evaluation of the completeness and effectiveness of governance, risk management, and internal control to help (Name of Provincial People's Committee) achieve strategic, operational, compliance, and financial objectives:

i. Monitoring and evaluating governance processes.

ii. Monitoring and evaluating the effectiveness of risk management processes of (province, centrally governed city).

iii. Assessing risks related to achieving strategic objectives of (Name of Provincial People's Committee).

iv. Evaluating systems established to ensure compliance with policies, plans, procedures, laws, financial regulations, accounting, and other relevant regulations that may significantly impact (Name of Provincial People's Committee).

V. Reviewing and confirming the quality and reliability of economic and financial information in financial reports and management accounting reports before submission for approval.

vi. Assessing protective measures for assets and, when necessary, verifying the existence of such assets.

vii. Reporting significant risks and control issues including fraud risks, governance issues, and other necessary or requested issues by the Chairman of (Name of Provincial People's Committee).

b) Providing in-depth analyses and recommendations based on data evaluations and processes of (Name of Provincial People's Committee):

i. Evaluating the reliability and integrity of management information systems and tools used to identify, measure, classify, and report such information.

ii. Analyzing activities or programs to determine if results align with established objectives and purposes.

iii. Evaluating whether activities or programs have been implemented according to plans.

iv. Assessing the efficiency and performance of resource utilization.

c) Providing independent and objective advice and recommendations: Conducting advisory activities related to governance, risk management, and internal control processes consistent with (Name of Provincial People's Committee).

d) Conducting pre-audit: carried out before the implementation of projects, programs, and operational plans of the audited department/unit, aimed at assessing the reliability of information and documents, the economic viability, feasibility, and effectiveness of the project, program, and operational plan; assisting management levels to obtain reliable information for decision-making.

đ) Conducting concurrent audit: carried out during the implementation of projects, programs, and operational plans of the audited department/unit, aimed at evaluating the progress and quality of the implementation process; promptly identifying and recommending corrective measures for discrepancies, omissions, and weaknesses in the implementation of the project, program, and operational plan, ensuring the best possible achievement of the project and operational objectives of the audited department/unit.

e) Conducting post-audit: carried out after the completion of the implementation of projects, programs, and operational plans of the audited department/unit, aimed at performing the contents and objectives of financial statement audit, compliance audit, and operational audit on the activities of the audited department/unit.

g) Advising subordinate departments/units (Name of Provincial People's Committee under the Central Government) on selecting and controlling the use of independent audit services to ensure economy and efficiency.

h) Periodically reporting on the purpose, authority, responsibility, and performance of the internal audit department related to unit plans.

i) Inspecting and evaluating specific activities as required by leadership (Name of Provincial People's Committee under the Central Government).

Article 7. Basic Principles of Internal Audit

1. Independence:

a) Persons engaged in internal audit shall not concurrently undertake tasks within the scope of internal audit. Internal audit shall not be subject to any interference while performing duties, reporting, and evaluating.

b) Internal auditors shall not participate in auditing activities and departments/units where they have been responsible for implementing activities or managing such departments/units within the last three years.

c) Persons engaged in internal audit shall not participate in auditing activities and departments/units where persons related to such persons engaged in internal audit are responsible for implementing activities or managing departments/units.

2. Objectivity: Persons engaged in internal audit work must ensure objectivity, accuracy, honesty, and fairness during the performance of internal audit tasks.

3. Compliance with laws and accountability before the law for internal audit activities.

Article 8. Professional Standards

1. The internal audit department must comply with legal regulations on internal audit, Core Principles for Internal Audit Practice, Code of Ethics, and Internal Audit Standards issued or announced by competent state agencies.

2. In addition, the internal audit department will comply with relevant policies and procedures of (Name of Provincial People's Committee under the Central Government) regarding internal audit, including the internal audit process approved and issued by the Chairman of (Name of Provincial People's Committee under the Central Government).

Article 9. Professional Ethics Principles of Internal Audit

1. Integrity: Internal auditors must perform their professional duties with honesty, seriousness, and a sense of responsibility; comply with legal regulations and disclose necessary information as required by law and professional requirements of internal audit; refrain from engaging in illegal activities or activities that harm the reputation of the profession and the reputation of (Name of Provincial People's Committee under the Central Government).

2. Objectivity: Internal auditors must demonstrate the highest level of professional objectivity in collecting, evaluating, and communicating information about audited activities and processes. Internal auditors provide objective assessments of all related situations and are not influenced by personal interests or anyone in making judgments and conclusions.

3. Professional competence and due care: Internal auditors apply their knowledge, skills, and experience in internal audit work. At the same time, they act prudently in accordance with applicable professional standards and techniques.

4. Confidentiality: Persons engaged in internal audit work must respect the values and ownership rights of provided information and shall not disclose such information without authorization from competent authorities unless disclosure is part of their professional responsibility or required by law.

5. Professional Standing: Persons engaged in internal audit work must comply with laws and related regulations, avoiding any actions that diminish their professional reputation.

6. The head of internal audit must implement measures to monitor, evaluate, and manage to ensure that internal auditors adhere to the principles of internal audit ethics.

Article 10 Professional Competence of Internal Auditing

1. The head of internal auditing shall consider the scale and complexity of the audit activities as well as the audit work to propose to the Chairman (Name of Provincial People's Committee under the Central Government) the necessary resources for the internal auditing department. The head of internal auditing establishes appropriate standards for recruiting staff for internal auditing work.

2. Minimum standards for personnel engaged in internal auditing work

a) Hold a bachelor's degree or higher in relevant fields suitable for auditing requirements, with comprehensive knowledge that is always updated on the areas assigned to perform internal auditing.

b) Have at least five years of work experience in the field of study or at least three years of work experience at (Name of Provincial People's Committee under the Central Government) or at least three years of auditing, accounting, or inspection work.

c) Possess general knowledge of laws and operations of (Name of Provincial People's Committee under the Central Government); have the ability to collect, analyze, evaluate, and synthesize information; possess knowledge and skills in internal auditing.

d) Not having been disciplined with a warning or higher due to economic, financial, accounting management violations, or not currently serving a disciplinary punishment period.

3. The head of internal auditing must have the relevant academic/professional qualifications and full auditing experience. The head of internal auditing also needs to have in-depth knowledge about business operations and organizational techniques, communication, and other related skills.

4. The head of internal auditing needs to assess the skills and knowledge of the internal auditing department for effectively performing process audits. In cases where necessary, external experts/advisors may be required for certain specialized fields outside the capabilities of internal auditing (for example, expertise in information technology systems). The head of internal auditing must plan the use of external experts/advisors and report to the Chairman (Name of Provincial People's Committee under the Central Government) for approval. The head of internal auditing remains responsible for internal auditing activities related to the results of external experts/advisors.

5. The head of internal auditing is responsible for the auditing activities of auditors. The head of internal auditing must ensure that the audit objectives stated in the approved audit plan are achieved. The head of internal auditing should establish a detailed and reasonable plan to complete each audit (that is, from the start of implementation to the issuance of the audit report) after considering the nature and complexity of the audit.

6. Personnel engaged in internal auditing need to be trained in the necessary knowledge to perform auditing tasks. Training must be maintained regularly so that all personnel engaged in internal auditing can keep up with industry developments and improve their professional skills. The head of internal auditing must ensure that personnel engaged in internal auditing are trained through appropriate means.

Article 11 Rights of the Internal Auditing Department

1. Shall proactively carry out tasks according to the approved audit plan.

2. Shall be equipped with necessary resources to perform work according to the approved plan.

3. To be provided with all necessary and timely information, documents, files for internal auditing activities and operational guidelines of relevant departments such as budget planning, allocation, and disbursement, accounting, and settlement of the budget of (Name of Provincial People's Committee under the Central Government), specialized agencies under (Name of Provincial People's Committee under the Central Government), and affiliated public institutions under (Name of Provincial People's Committee under the Central Government).

4. To access and review all operational procedures and assets when conducting internal auditing.

5. To access and interview all staff members of the unit regarding issues related to the audit content.

6. To receive documents, texts, meeting minutes of the leadership (Name of Provincial People's Committee under the Central Government) and other functional departments related to internal auditing work.

7. To attend internal meetings as prescribed by law or internal regulations of (Name of Provincial People's Committee under the Central Government).

[The entity specifies some internal meetings that internal auditing may attend to ensure that internal auditing fulfills its functions and responsibilities. For example: morning meetings of (Name of Provincial People's Committee under the Central Government) or of specialized agencies, affiliated units under (Name of Provincial People's Committee under the Central Government)].

8. Shall monitor, evaluate, and follow up on the activities of rectification, improvement, and completion by heads of units and departments concerning issues identified and recommended by the internal audit.

9. To be protected from any non-cooperative actions by the audited department/unit.

10. To be trained to enhance the capacity of personnel engaged in internal auditing within the internal auditing department.

11. All officials and employees in (Name of Provincial People's Committee under the Central Government) have the responsibility to support the internal auditing department in fulfilling their roles and responsibilities.

Article 12. Responsibilities of the internal audit unit

1. Must maintain confidentiality of documents and information in accordance with current laws and regulations of (Name of Provincial People's Committee under the Central Government).

2. Are accountable to the Chairman (Name of Provincial People's Committee under the Central Government) for the results of internal auditing work, for evaluations, conclusions, recommendations, and proposals in internal auditing reports.

3. Must promptly monitor, urge, and inspect the implementation of post-audit recommendations by departments/units under and affiliated to, and specialized agencies under (Name of Provincial People's Committee under the Central Government).

4. Shall organize continuous training to enhance and ensure professional competence for internal audit personnel.

5. Other responsibilities as prescribed by law and internal auditing regulations of (Name of Provincial People's Committee under the Central Government).

Article 13. Responsibilities and Authorities of Internal Audit Personnel

1. Responsibilities:

a) Implement the approved audit plan;

b) Determine sufficient, reliable, appropriate, and useful information for achieving audit objectives;

c) Base conclusions and audit results on suitable analyses and assessments independently and objectively;

d) Retain relevant information to support conclusions and produce audit results;

đ) Shall be responsible for the audit results assigned to them;

e) Maintain confidentiality of information in accordance with legal provisions;

f) Continuously improve professional skills and uphold professional ethics;

h) Other responsibilities as prescribed by law and the Internal Audit Regulations of (Name of Provincial People's Committee).

2. Authorities:

a) While conducting audits, they have the right to independently comment, evaluate, conclude, and make recommendations on the contents that have been audited.

b) Have the right to request departments/units being audited to provide timely and complete documents and information related to the audit content;

c) Shall reserve opinions in writing within the scope of their assignment;

d) Perform other authorities as prescribed by law and the Internal Audit Regulations of (Name of Provincial People's Committee).

Article 14. Responsibilities and Authorities of the Head of Internal Audit

1. Responsibilities:

a) Manage and direct the internal audit department to perform tasks as prescribed;

b) Ensure that personnel of the internal audit department are regularly trained and have sufficient expertise and professional capacity to carry out their duties;

c) Implement measures to ensure the independence, objectivity, and honesty of internal audit;

d) Report to the Chairman of (Name of Provincial People's Committee) when discovering weaknesses and issues in the internal control system;

đ) Provide opinions when consulted by the head of internal audit of state-owned enterprises and public service units under (Name of Provincial People's Committee);

e) Be responsible for the results of internal audits conducted by the internal audit department;

g) Maintain confidentiality in accordance with legal regulations;

h) Other responsibilities as prescribed by law and the Internal Audit Regulations of (Name of Provincial People's Committee).

2. Authorities:

a) Propose to the Chairman of (Name of Provincial People's Committee) to issue regulations, procedures for internal auditing, and methods of internal audit operations;

b) Be entitled to request the participation of personnel from other departments of the unit; be entitled to propose hiring experts and consultants to establish the internal audit department of (Name of Provincial People's Committee) to participate in internal audits when necessary, provided that the independence of internal auditing is ensured;

c) Attend meetings as prescribed internally by the unit and by law;

d) During the conduct of audits, have the right to independently comment, evaluate, conclude, and recommend on matters audited;

đ) Have the right to require the audited department/unit to provide timely and complete documentation and information related to the audit content;

e) Reserve opinions in writing regarding the audit results;

g) Perform other authorities as prescribed by law and the Internal Audit Regulations of (Name of Provincial People's Committee).

Article 15. Independence and Objectivity of Internal Auditing

1. The internal audit department will not be interfered with by any factor within the organization, including issues regarding audit selection, scope, procedures, frequency, timing, or report content, to allow the maintenance of the necessary independent and objective mindset.

2. Internal audit personnel will not have responsibility or authority to directly manage any activity being audited.

Accordingly, internal audit personnel will not perform internal controls, develop processes, install systems, prepare records, or participate in any other activities that may reduce their judgment.

3. Internal audit personnel will demonstrate the highest level of professional objectivity in collecting, evaluating, and communicating information about the activities or processes being reviewed. They will assess all relevant situations impartially and will not be influenced by their own or others' interests in making judgments.

4. The head of internal audit will annually commit and confirm to the Chairman of (Name of Provincial People's Committee) the independence of the organization relative to the internal audit department.

PART II

INTERNAL AUDIT ACTIVITIES

Article 16. Method of Implementing Internal Audit

The method of implementing internal audit is a risk-oriented audit approach, prioritizing the allocation of resources to audit departments/processes assessed to have high levels of risk.

Article 17. Internal Audit Plan

Annually, before the date ..., the internal audit department shall submit to the Chairman (Name of the People's Committee of the province/city under the Central Government) the internal audit plan for review and approval.

2. The internal audit plan shall include the scope of the audit, the audit subjects, audit objectives, audit time, and allocation of resources for the next fiscal/year.

3. The internal audit plan will be developed based on the priority of risk-oriented audit methods, taking into account the contributions of the Chairman (Name of the People's Committee of the province/city under the Central Government) and the heads of departments/units subordinate to it, specialized agencies. The person responsible for internal auditing must comprehensively assess risks in all activities, business processes, units/departments to develop the internal audit plan. The person responsible for internal auditing will review and adjust the plan if necessary to respond to changes in business, risks, operations, programs, systems, and controls of (Name of the People's Committee of the province/city under the Central Government). Any significant adjustments to the approved internal audit plan will be reported to the Chairman (Name of the People's Committee of the province/city under the Central Government) for approval.

4. The internal audit department and the inspection agency of (Name of the People's Committee of the province/city under the Central Government) have the responsibility to coordinate with each other on issues related to internal audit expertise, risk assessment, and information inputs for developing the internal audit plan.

5. The internal audit department and the inspection agency of (Name of the People's Committee of the province/city under the Central Government) have the responsibility to coordinate with each other to avoid overlap in the audit and inspection plans for the same department/unit/subordinate agency under (Name of the People's Committee of the province/city under the Central Government).

6. The annual internal audit plan must be approved within ... days from the date the person responsible for internal auditing submits it to the Chairman (Name of the People's Committee of the province/city under the Central Government).

7. The internal audit plan must be sent to the Chairman (Name of the People's Committee of the province/city under the Central Government) and the Vice Chairman in charge of administration (if any) and the departments named in the plan within ... days from the date of approval.

Article 18 Internal Audit Process

The person responsible for internal auditing develops a detailed internal audit process suitable for the specific characteristics of the operations of (Name of the People's Committee of the province/city under the Central Government), consulting the opinions of the heads of departments/units subordinate to it, specialized agencies under (Name of the People's Committee of the province/city under the Central Government) before submitting to the Chairman (Name of the People's Committee of the province/city under the Central Government) for issuance.

Article 19. Audit Reports and Supervision of Implementation of Audit Recommendations

1. Report of Each Internal Audit:

a) Each internal audit report is prepared by the Head of the Audit Team/Group or the person responsible for the audit. The person responsible for internal auditing reviews, approves, and submits to the Chairman (Name of the People's Committee of the province/city under the Central Government) within a maximum period of ... days after completing the audit (for example, 10 days). The audit report must be signed by the Head of the Audit Team/Group or the person responsible for the audit.

b) The audit report must clearly present: the content of the audit, the scope of the audit; evaluations and conclusions about the audited content and the basis for these opinions; weaknesses, deficiencies, errors, violations, recommendations for corrective measures, and handling of violations; proposals for rationalization and improvement of business processes; completion of risk management policies, organizational structure of (Name of the People's Committee of the province/city under the Central Government) (if applicable).

c) The audit report must include the opinion of the heads of the audited departments/units. In cases where the audited department/unit does not agree with the audit results, the internal audit report must clearly state the non-agreement of the audited department/unit and the reasons.

d) After completion, the internal audit report is sent to the Chairman (Name of the People's Committee of the province/city under the Central Government), the audited department/unit, and relevant departments.

[The unit specifies the reporting process to the Chairman (Name of the People's Committee of the province/city under the Central Government). For example: The person responsible for internal auditing periodically (quarterly) prepares a summary report of the contents of internal audit reports and submits it to the direct supervisor. Then, the direct supervisor reviews and submits the report to the Chairman according to their authority and the internal reporting procedures of the unit.]

2. Annual Internal Audit Report:

a) At the latest by the date ..., the person responsible for internal auditing must submit the annual audit report to the Chairman (Name of the People's Committee of the province/city under the Central Government).

[The unit specifies the reporting process. For example: The person responsible for internal auditing prepares a summary report of the annual internal audit report and submits it to the direct supervisor at the latest ... (for example, 45 days) after the end of the fiscal year. Then, the direct supervisor reviews and submits the report to the Chairman according to their authority and the internal reporting procedures of the unit.]

b) The annual internal audit report must minimally include the following contents:

- The audit plan proposed; audit work performed;

- Significant deficiencies and violations identified; recommended corrective actions by internal audit.

- Evaluation of the internal control system related to the audited activities and proposals to improve the internal control system;

- The implementation status of measures, suggestions, and recommendations from internal audit;

c) The annual internal audit report must be signed by the person responsible for internal audit.

3. Unusual reports:

In case of serious violations being discovered or when there is a high risk that may negatively impact the unit's operations, the internal audit department of the unit must immediately report to the Chairman (Name of the People's Committee of the province/city under the Central Government). Unusual reports in cases of issues arising during the fiscal year include the following contents:

a) Risk issues that internal audit focuses on and pays attention to;

b) Exposure or occurrence of weaknesses in the internal control system in a department.

c) Serious findings require guidance for handling and rectification by the Chairman (Name of the People's Committee of the province/city under central jurisdiction).

d) Unusual reports present emerging issues or discoveries along with recommendations for handling them;

[The level of seriousness and high risk is determined by the unit itself.]

4. Check the implementation of internal audit recommendations:

a) Reviewing and evaluating the time and results of tasks carried out by the audited section/unit according to internal audit recommendations;

b) Report the results of checking the implementation of internal audit recommendations to the Chairman (Name of the People's Committee of the province/city under central jurisdiction) regarding the audited department/unit.

[Specific form to detail the reporting process sent to the Chairman. For example: The person in charge of internal audit prepares a summary report on the contents of irregular internal audit reports or reports on the implementation of internal audit recommendations and submits it to the direct supervisor. Then, the direct supervisor reviews and forwards the report to the Chairman according to the established reporting procedures and internal regulations of the organization].

Article 20. Storage of internal audit reports, files, and documents:

1. Files and documents from each audit must be recorded in writing (paper or electronic), kept in sequence so that authorized individuals and organizations can access and understand the work and results presented in the audit report.

2. Internal audit reports, files, and documents must be retained in accordance with current laws and regulations of (Name of the People's Committee of the province/city under central jurisdiction).

Article 21. Safeguarding and enhancing the quality of internal audit

1. The internal audit department will maintain a quality assurance and improvement program covering all aspects of the internal audit department;

2. The program will include an assessment of the compliance of the internal audit department with internal audit regulations and standards; an evaluation of adherence to the Code of Ethics for internal auditors. The program also evaluates the effectiveness and efficiency of the internal audit department and identifies opportunities for improvement.

3. A review of internal audit activities is conducted at the end of each audit and annually by the internal audit department itself to ensure the quality of internal audit activities. In cases where necessary, the internal audit department may engage an independent external auditing firm to conduct a review every five years.

4. The head of the internal audit department will report to the Chairman (Name of the People's Committee of the province/city under central jurisdiction) on the program to safeguard and enhance the quality of the internal audit department, including the results of annual internal evaluations and external evaluations (if any).

CHAPTER III

Article 22. Responsibilities of the Chairman (Name of the People's Committee of the province,

city under central jurisdiction)

1. Enactment of the internal audit regulations of (Name of the People's Committee of the province/city under central jurisdiction);

2. Decisions on the organizational structure of the internal audit department; appointment and removal of the head of the internal audit department and other positions within the internal audit department.

3. Creating favorable conditions to ensure that the internal audit department can fulfill its tasks.

4. Approving the annual internal audit plan and internal audit report.

5. Decision and approval of the implementation of internal audit recommendations; directing departments to implement internal audit recommendations; taking timely measures when there are recommendations or proposals from the internal audit department.

Article 23. Responsibilities of heads of departments/units subordinate to, directly under, and specialized agencies under (Name of the People's Committee of the province/city under central jurisdiction)

1. Creating favorable conditions for internal audit to perform assigned tasks and directing departments to cooperate with internal audit according to the internal audit regulations.

2. Urging departments to implement recommendations agreed upon with the internal audit department or as directed by the Chairman (Name of the People's Committee of the province/city under central jurisdiction), and informing the internal audit department about the implementation status of agreed-upon recommendations.

3. Ensuring that the internal audit department is fully informed about changes and new issues arising in the operation of the department/unit to identify related risks early on.

4. Implement approved recommendations from the internal audit department; take timely measures when there are recommendations or proposals from the internal audit department.

Article 24. Responsibilities of departments and units subject to audit

1. Provide all necessary information, documents, and files for the internal audit work truthfully and accurately as required by the internal audit department, without concealing any information.

2. Immediately notify the internal audit department upon discovering deficiencies, issues, violations, risks, significant losses of assets, or potential asset losses.

3. Implement recommendations agreed upon with the internal audit department or pursuant to the directive of the Chairman (Name of the People's Committee of the province or centrally governed city).

4. Creating the most favorable conditions for the internal audit department to achieve maximum efficiency.

PART IV

IMPLEMENTATION PROVISIONS

Article 25. Effective Date

This Regulation shall take effect from the date of ...

Article 26. Amendment, Supplement, and Replacement of the Regulation

1. The head of the internal audit is responsible for periodically reviewing this Regulation and proposing necessary amendments, supplements, or replacements.

2. Any amendment, supplement, or replacement of this Regulation shall be decided by the Chairman (Name of the People's Committee of the province or centrally governed city).

Article 27. Organization for Implementation

Heads of Departments, Offices, and organizations and individuals under the (Name of the People's Committee of the province or centrally governed city) are responsible for implementing this Regulation.