Decision No. 714/QD-TCTCKT on the issuance of temporary regulations on accounting inspection

Pursuant to …;

Regarding the issuance of temporary regulations on accounting inspection

________________________

THE MINISTER OF FINANCE

Pursuant to Decree No. 197-CP dated November 7, 1961 of the Council of Ministers stipulating the tasks, authorities, and organizational structure of the Ministry of Finance;

Pursuant to Article 26 of the Accounting Organization Charter issued pursuant to Decree No. 175-CP dated October 28, 1961 of the Council of Ministers, which assigns the responsibility to the Ministry of Finance to establish accounting inspection regulations.

DECISION:

Article 1.-Now hereby promulgates the temporary regulations on accounting inspection attached hereto.

Article 2. - These temporary regulations on accounting inspection shall apply to all accounting units under various sectors without distinction between those under central or local management.

Based on these general accounting inspection regulations, central sector management agencies and local administrative committees (regions, provinces, cities) may supplement necessary provisions to suit their specific circumstances. Such supplementary provisions must be reported to the Ministry of Finance.

Article 3. - These accounting inspection regulations shall take effect from the date of issuance.

REGULATIONS

TEMPORARY ACCOUNTING INSPECTION REGULATIONS

PART ONE :

Chapter 1

GENERAL PRINCIPLES

Article 1. - Accounting inspection is an active, effective method that cannot be dispensed with in the supervision of state economic and financial affairs after events have occurred. Accounting inspection aims to promote compliance with accounting charters and regulations, enhance the effectiveness of accounting work in utilizing human resources, materials, and finances efficiently, tapping potential capabilities, strictly enforcing financial discipline, practicing thrift, combating waste and corruption, and promoting the completion and overfulfillment of state plans.

Article 2. - According to Articles 24, 25, and 28 of the State Accounting Organization Charter, the tasks of accounting inspection are:

1. Inspecting the calculation, recording, and reflection of accounting regarding accuracy, timeliness, completeness, truthfulness, clarity, and adherence to regulations and procedures, inspecting organizational aspects, working methods, and the results of accounting operations.

2. Preventing and stopping violations of accounting principles, regulations, and procedures to enhance the sense of responsibility of departments and levels towards accounting work, promptly identifying and disseminating innovative ideas and experiences in adhering to accounting regulations and procedures to continuously improve the quality of accounting work.

3. Through accounting inspections, monitor the implementation of budgets, production plans, financial revenue and expenditure plans, financial discipline in revenue collection and payment, and the preservation and utilization of material and monetary resources, promptly detecting and preventing acts of embezzlement, waste, policy violations, and economic and financial discipline breaches.

Article 3. - In accordance with the State Accounting Organization Charter (Article 26), all accounting units must undergo regular accounting inspections as prescribed in these regulations. Regular inspections include:

- Internal regular inspections within units according to the responsibilities and duties of the accounting head and accounting organization as stipulated in the State Accounting Organization Charter;

- Regular inspections at least once a year by superior units for subordinate units;

- Regular inspections by financial agencies.

Article 4. - Within each sectoral management unit, the superior accounting unit must ensure comprehensive inspections of the accounting work of subordinate units under its direct management at least once a year, in addition to self-inspections conducted by those units themselves.

Article 5. - To ensure nationwide implementation of state accounting procedures, the Ministry of Finance and local financial agencies have the duty to conduct comprehensive inspections of the accounting work of subordinate financial agencies and units directly funded by them at least once a year, in addition to the regular inspections carried out by those units themselves.

Chapter 2

CONTENT AND METHODS OF ACCOUNTING INSPECTION

Article 6. - The method of accounting inspection is a comparative inspection method; comparing vouchers with ledgers, ledgers with reports, vouchers, ledgers, and reports with actual activities, regulations, procedures, policies, standards, plans, and physical assets; comparing vouchers and ledgers of the inspected unit with related units, etc., to identify correct or incorrect aspects in accounting work.

Article 7. - The main content of accounting inspection is:

- Inspecting the application of general accounting regulations and procedures according to the characteristics and situation of each unit or sector;

- Inspecting daily accounting voucher and ledger entries;

- Inspecting the preparation and submission of reports;

- Inspecting payment situations;

- Inspecting inventory and monetary funds;

- Inspecting the organization and leadership of accounting work.

Article 8. - Inspecting the application of accounting regulations and procedures involves checking whether each unit's accounting system is sufficient to meet operational needs and is suitable for the unit's organization; whether it complies with general regulations, and whether it adequately reflects the economic and financial indicators prescribed by the state for that unit, and whether there are any deficiencies or inconsistencies with the regulations in practice.

The main content of the inspection of the establishment of accounting systems is:

- Inspecting the establishment of the accounting voucher and ledger system;

- Inspecting the arrangement and use of the accounting voucher and ledger system;

- Inspecting the arrangement and use of the account system according to the unified regulations of the sector and the units of the Ministry of Finance.

Article 9. When inspecting accounting vouchers, the following must be done:

- Checking the content of the vouchers to see if the economic activities recorded in the vouchers are valid, consistent with reality, and comply with current regulations and procedures, and are consistent with approved standards and budgets;

- Checking whether the calculations on the vouchers are accurate, whether the vouchers contain all necessary elements and signatures of authorized persons, or whether they have been erased or altered. For summary vouchers and ledger entries, they must be compared with original vouchers to check if the consolidation is complete and accurate. For ledger entries, additional checks must be made to ensure that the accounts to be recorded (account classification) are appropriate to the nature and content of the economic transactions.

Article 10. - Review the daily accounting record keeping to ensure that entries are up-to-date, accurate, and comply with regulations. When reviewing the situation of daily record keeping, it must be ensured that:

- Verify whether the entries are updated accurately according to actual events, consistent with clear and detailed accounting vouchers, and reflect economic transactions correctly according to account contents;

- Check whether the figures between ledgers and vouchers, among different types of ledgers, and between analytical accounts (detailed classification accounts) and summary accounts (general classification accounts) match each other;

- Verify whether the organization of cost accounting and circulation fee recording is accurate and timely, and complies with the requirements of the superior unit regarding methods and standards; check whether the organization of accounting recording at production facilities (workshops, production areas, production teams, construction teams...) is sufficient to serve internal cost calculation and circulation fee calculation within the unit;

Article 11. - Review the establishment and submission of accounting reports to ensure that the settlement reporting system is implemented on time, according to the prescribed format, and accurately reflects reality;

When reviewing the establishment and submission of reports, it must be ensured that:

- Verify whether the establishment and submission of reports are timely, complete, and comply with the prescribed formats; whether the contents of the reports fully reflect the indicators as stipulated by regulations;

- Verify the accuracy of the figures;

- Verify whether other units provide the necessary documents for report preparation to the head accountant;

- Verify whether there is reconciliation of bank deposit accounts with bank records before preparing reports, whether there is reconciliation of receivables and payables accounts, and whether related vouchers are checked, and whether inventory verification is conducted according to current procedures;

Article 12. When reviewing payment situations, it must be ensured that:

- Verify the accurate calculation and timely payment of taxes, profits, depreciation, and other receivables and payable amounts to the State Bank;

- Verify whether the reflection of received and returned receivables, temporary payments, and advances is clear and consistent with reality, and whether the respect for the accounting discipline by the head accountant is strictly observed;

Article 13. - Checking materials and monetary funds involves checking cash reserves (including valuable papers such as checks, certificates, stamps...), materials, equipment, inventory goods, fixed assets, tools, low-value consumables... to ensure the accuracy of accounting work and the safety of state property;

When checking materials and monetary funds, it must be ensured that:

- Verify the ledger entries for cash receipts and payments, goods receipts and payments, and other asset receipts and payments;

- Verify the integrity of cash reserves, inventory goods, and other assets;

- Verify whether the rules for the preservation, inspection, and regular inventory of cash, goods, and materials are strictly followed;

Article 14. When reviewing the organization and leadership of accounting work, it must be ensured that:

- Verify whether the staffing, organizational structure, division of responsibilities within the organization are appropriate for the accounting tasks of the inspected unit, and whether accounting staff meet the prescribed standards and job requirements;

- Verify whether the relationships among accounting departments and between the accounting department and other departments within the accounting unit are tight and ensure the accuracy, completeness, and timeliness of accounting work;

- Verify the organization of accounting document preservation;

- Verify the implementation of internal and external accounting inspection systems and plans within the unit and its subordinate units;

- Verify whether general accounting staff, including the head accountant, fulfill their duties and exercise their powers adequately;

- Verify the leadership of the responsible authority over accounting work and accounting staff, ensuring compliance with prescribed responsibilities and tasks.

PART TWO:

Chapter 3

DUTIES AND LIMITS OF AUDIT STAFF AND UNITS TO BE AUDITED

Article 15. - Within each accounting unit, the head and chief accountant of the unit are responsible for organizing internal audits of accounting work within their own unit as well as in subordinate units in accordance with the regulations on accounting audit procedures.

Article 16. - To assist the head and chief accountant of the unit in performing accounting audit tasks, at each accounting unit, it is necessary to organize and assign one or more full-time staff members for auditing work.

For accounting units with many subordinate units, it is necessary to establish an audit group, team, or department.

Article 17. - The audit organization or audit staff have the following responsibilities:

- Assist the head and chief accountant of the unit in planning audits and directing methods of audit work for units within the sector;

- Directly audit subordinate units;

- Urge subordinate units to implement audit plans;

- Monitor and audit compliance with decisions and requirements set forth during audit rounds for subordinate units;

- Collect information on audits conducted in subordinate units, draw and disseminate experiences, report to superiors on the situation and results of implementing the audit plan;

Article 18. - Audit staff must be honest, impartial, not commit significant shortcomings during their activities, and possess expertise in accounting practices.

The agency sending personnel for audits must base the selection of staff on the requirements, content, and objects of the audit, assigning suitable personnel for each specific case.

Article 19. - Accounting units must allocate audit staff who meet the standards and have sufficient capacity, avoiding reassigning audit staff to other jobs, thereby creating conditions for audit staff to accumulate experience and gradually improve the quality of audit work.

For audits with a relatively large workload where the number of full-time audit staff is insufficient, the accounting unit may mobilize capable staff from within the unit or from the chief accountants and capable accounting staff in subordinate units to perform audit work for a certain period of time.

Article 20. - Audit staff must comply strictly with state regulations on confidentiality and maintain absolute secrecy.

- Audit staff must rely on current laws, decisions of competent authorities, directives of the unit's head, and conduct accounting audits rigorously and honestly;

If they intentionally conceal acts of embezzlement, violations of regulations, rules, policies to cover up and mitigate the faults of those who have committed errors, or violate state regulations on protecting secrets, they may be subject to disciplinary action or prosecution depending on the circumstances.

Article 21. - The heads and chief accountants of units being audited must create all favorable conditions for audit staff to carry out their audit work smoothly.

- Assist audit staff in understanding the situation of their own unit;

- Provide audit staff with vouchers, ledgers, accounting reports, and relevant operational materials (reports, contracts, financial plans, etc.) and other necessary documents upon request of the audit staff;

- Mobilize staff and employees to participate in assisting audit staff in certain tasks such as copying, rewriting documents, inventory checks, etc., if requested by the audit staff.

If the unit being audited considers it impossible or inappropriate to provide certain documents or data to the audit staff, they must formally respond (by letter) to the audit staff while simultaneously reporting to superiors for review and decision.

Article 22. - Employees in the unit being audited must actively assist audit staff by directly reflecting or providing written information on the implementation of accounting regulations and rules, the preservation and use of assets (materials, goods, monetary funds, etc.), and offering suggestions to audit staff on measures to improve and correct issues.

Units and agencies related to the unit being audited have the responsibility to assist audit staff by providing necessary documents for reconciliation and verification.

Those who actively discover situations, offer opinions, and significantly contribute to achieving good audit results shall be rewarded.

Those who intentionally refuse to assist audit staff, causing difficulties or obstructing audits may be subject to disciplinary action or prosecution depending on the circumstances.

PART THREE

Chapter 4

SOME ISSUES REGARDING PROCEDURES AND WORKING METHODS

Article 23. - To ensure that accounting audits in units and subordinate units proceed smoothly, at the end of each year, accounting units with subordinate units must develop an audit plan for the next year. The plan must clearly specify: the names of units to be audited, the scope and requirements for comprehensive or partial audits, and the audit timeframe for each unit.

Each year, central-level accounting units, Departments, Bureaus, Financial Zones have the duty to summarize the situation and results of implementing the audit plan for that year, and submit the summary to the Ministry of Finance and the Government Inspectorate Commission.

Article 24. - The audit period at a unit must begin immediately after the conclusion of the previous audit at that unit to ensure continuous operation of the audit unit without interruption between two audit rounds.

Article 25. - When conducting an audit of an accounting unit, the audit team, group, or individual auditor must present to the head of the unit being audited a valid audit authorization order or letter from the superior unit's head or a competent state agency:

In the audit authorization order or letter, it must clearly state: the name of the unit to be audited, the requirements, content of the audit, the period needed for the audit, the deadline for conducting the audit, and the names and positions of the audit staff.

2. When conducting inspections at a local administrative unit, accounting inspection officers must notify and consult with the local administrative committee (province, city, district...) and report the results of the inspection to the local administrative committee upon completion.

In cases where the inspected entity is located in a commune under the jurisdiction of a district, province, or city administrative committee, inspection officers may notify through a formal letter before the inspection and submit a report after its completion.

3. Upon arriving at the inspected entity and after presenting the inspection order or authorization document to the entity's leadership, inspection officers may immediately inspect cash on hand, valuable certificates, stamps, goods, and other inventory items without prior notice to the custodians; they may also conduct a full or partial inventory of remaining items.

Prior to inventorying goods and materials, inspection officers must verify the accuracy of the measuring tools used by the custodians.

4. If during the inspection process, violations caused by staff from other units are discovered, inspection officers must immediately inform the head of that unit. In serious cases, inspection officers must report to the Government Inspectorate Committee or the local inspectorate body where the inspection took place.

5. During the inspection process, if deemed necessary, inspection officers may extract documents for further investigation and research, replacing them with signed receipts.

Article 26. After completing the inspection, inspection officers must prepare an inspection record or report detailing all findings and recommendations for rectifying identified deficiencies.

A copy of the inspection record or report shall be returned to the inspected entity.

The inspection officer, the head, and the chief accountant of the inspected entity must sign the inspection record or report. If there are disagreements with the inspection report, the head and chief accountant of the inspected entity have the right to include their comments along with the report. Any points of disagreement must be immediately handed over to the inspection officer.

Article 27. Based on the inspection record or report, within thirty days of receiving it, the head of the inspected entity must issue an official assessment and recommendations for correcting identified deficiencies, or recommendations for handling those responsible for the deficiencies, etc.

For recommendations aimed at correcting current violations, the inspected entity must comply immediately, provided the leadership of the inspected entity has no objections.

Article 28. Upon concluding the inspection, the inspection officer must evaluate their performance regarding attitude, work relations, and assess the completion of tasks against the stipulated requirements, content, and timeframe for the inspection. The evaluation must include comments from the head and chief accountant of the inspected entity.

Article 29. To ensure the effectiveness of accounting inspections, leaders of inspection organizations and chief accountants must organize follow-up and supervision of issues raised by these inspections.