Internal audit in the enterprise aims to evaluate and test the effectiveness of risk management, control system as well as the management process in that enterprise. However, not all businesses are required to perform internal audit.
According to Article 10 of Decree 05/2019 / ND-CP, only the following enterprises are required to be subject to internal audit:
(1) Listed companies.
(2) The enterprise in which more than 50% of charter capital is owned by the State is the parent company operating under the model of parent company – subsidiary company.
(3) State-owned enterprise is a parent company operating under the model of parent company – subsidiary company.
- Enterprises can hire an independent audit organization that is qualified to conduct audit as prescribed to provide internal audit services. However, this case must ensure compliance with the basic principles of internal audit and the requirements to ensure compliance with the basic principles of internal audit under Article 5, Article 6 of the Decree. 05/2019 / ND-CP.
- The hiring for internal audit of enterprises under the Ministry of National Defense and the Ministry of Public Security shall comply with the regulations of the Minister of National Defense and the Minister of Public Security.
Decree 05 also stipulates that the person performing internal audit in the above enterprises must meet the following criteria:
- Having a university or higher degree in the subjects relevant to the audit requirements, having full and up-to-date knowledge of the areas assigned to perform internal audit.
Having worked for 05 years or more in the training major or 03 years or more working in the current working unit or 03 years or more working as auditor, accountant or inspector.
- Have general knowledge and understanding of the law and business activities; ability to collect, analyze, evaluate and synthesize information; have knowledge and skills in internal audit.
- Have not been disciplined at a warning level or higher due to mistakes in economic management, finance, accounting or are not being disciplined.
- Other standards specified by the enterprise.