Several firms to be subject to internal audit in April
Several firms to be subject to internal audit in April
Listed companies, those having half the charter capital owned by the State and those fully owned by the State must undergo an internal audit from April, according to the Government’s recently issued decree.
Decree 05/2019/ND-CP on internal audits at State firms, public service units and businesses operating under the parent company-subsidiary model also encourages other businesses to perform internal audits.
The decree introduces a legal framework on carrying out internal audits as well as outlines the roles and responsibilities of auditing units and related parties.
According to Hoang Hung of PwC Vietnam, also a consultant for the building of Decree 05, the decree will help promote transparency in corporate governance.
The issuance of Decree 05 is expected to spur businesses and organizations to invest in internal audits more actively to independently review and assess the governance, risk management and internal controls of businesses, Hung said.
Decree 05, together with the securities law, which is being revised, and the code of corporate governance, which will soon be issued, is expected to safeguard the interests of investors and ensure the transparency of the stock market.
The new decree also covers the requirements governing those involved in internal audits as well as ethics in auditing.
Hung said that issues related to auditing personnel will need to be solved as few people are qualified for the job.
Under the decree, those subject to internal audits will have to complete the necessary preparations within 24 months, starting from April 1. More specific guidance will be released in the coming period.
