03 businesses are required to have internal audits

03 businesses are required to have internal audits

Internal audit within an enterprise to achieve the goal of evaluating and checking the effectiveness of risk management activities, control systems as well as management processes at that enterprise. However, not all businesses are required to do so internal audit.
According to the provisions of article 10 Decree 05/2019/ND-CP then only the following businesses are required internal audit:
(1) Listed company.
(2) Enterprise which the state owns over 50% charter capital is a parent company operating according to the parent company - subsidiary model.
(3) State-owned enterprises are parent companies operating according to the parent company - subsidiary model.

– Businesses can hire an organization independent audit qualified to provide audit activities according to regulations internal audit services. However, this hiring case must ensure compliance with the basic principles of internal audit and the requirements to ensure compliance with the basic principles of internal audit according to Article 5 and Article 6 of the Decree. 05/2019/ND-CP.
– The rental is done 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.

Regulations on people performing internal audit in the above enterprises must meet the following standards:

– Have a university degree or higher in relevant majors audit, has complete knowledge and is always updated about the assigned fields internal audit.
– Have worked for 05 years or more in the training major or 03 years or more working at the unit currently working or 03 years or more working audit, accountant or inspector.
– Have general knowledge and understanding of law and business operations; have the ability to collect, analyze, evaluate and synthesize information; have knowledge and skills internal audit.
– Have not been disciplined at a warning level or higher due to violations in economic, financial, accounting management or are not currently under disciplinary sentence.
– Other standards prescribed by the enterprise.

Contact now AACS for advice and support.

AACS AUDITING COMPANY LIMITED

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