Regulations on internal audit
VGP - The Government issued Decree No. 05/2019/ND-CP (“Decree 05”) stipulating internal audits in state authorities, public non-business organizations and enterprises.
Question: Which enterprises are subjected to conducting internal audits?
Which enterprises are permitted to outsource internal audits?
Answer: Under Decree 05, enterprises which are required to conduct internal audits include: listed companies; enterprises in which the State owns over 50% charter capital and which are parent companies operating in the model of parent company - subsidiary; state-owned enterprises which are parent companies operating in the model of parent company - subsidiary.
Decree 05 also stipulates that if an enterprise falls into those which must conduct internal audits but does not have enough human resources to conduct internal audits, it may outsource this operation to an independent audit organization qualified for providing auditing services as prescribed by law; concurrently ensure the basic principles of internal audits and the requirements to ensure compliance with them.
Decree 05 shall take effect since April 1, 2019./.
