Summary of new elements of the 2015 Law on State Audit

1. Scope of application

This Law provides for functions, tasks, powers, operation and organizational structure of the State Audit; roles and powers of the Auditor General of the State Audit, auditors of the State Audit; powers and responsibilities of institutions, organizations or individuals relating to the State Audit. 

2. The subject matter of auditing by the State Audit

The subject matter of auditing by the State Audit is the management and utilization of public-sector finance or assets, and operations relating to the management and utilization of public-sector finance and assets of audited entities.

3. Standards of the State Audit

The Auditor General of the State Audit will set and introduce standards of the State Audit under the provisions of the Law on Introduction of legislative documents in place of regulations adopted by the Standing Committee of the National Assembly which prevail in the previous period.

4. Legal value of an audit report

An audit report of the State Budget after being issued and publicly disclosed is binding on entities subject to auditing of frauds committed against management and utilization of public-sector finance and assets.

5. Functions of the State Audit

The State Audit has its functions, including evaluation, confirmation, conclusion and recommendation relating to management and utilization of public-sector finance and assets. 

6. Increased roles of the State Audit

- Decide the annual audit plan and report to the National Assembly only instead of reporting to both the National Assembly and the Government before commencement as required in the previous period.  

- Conduct implementation of the annual audit plan and perform the audit duty upon the request of the National Assembly, National Assembly Standing Committee, State President, Government and Prime Minister.

- Consider and decide audit-related issues upon the request of the Ethnicity Council, Committees of the National Assembly, National Assembly Delegation, Standing Committee of the People's Council, People's Committee at the provincial level, and agencies or organizations which are not specified in the annual audit plan of the State Audit. 

- Take responsibility to give any explanation relating to the audit result to the National Assembly and the National Assembly’s organs in accordance with laws and regulations.

- Hold examinations, grant, revoke and manage practicing certificates of state auditors.

7. Authority of the State Audit

The State Audit will have more rights to bring before the National Assembly and National Assembly Standing Committee bills, proposed ordinances and draft resolutions in accordance with laws and regulations.

8. Regulations on the position of the Auditor General of the State Audit include certain noticeable contents as follows:

- The Auditor General is the head of the State Audit and assumes responsibility before the National Assembly for organization and operation of the State Audit.

- The Auditor General is elected, discharged and dismissed by the National Assembly upon the request of the National Assembly Standing Committee.

- The term of office of the Auditor General lasts 05 years in accordance with the tenure of the National Assembly by the end of which (s)he can be reelected for a new one but two consecutive terms of office is not permitted.

- The Auditor General will be given additional responsibilities, including:

+ Render a general report on the annual audit result, present a performance report to the National Assembly; during an interval between two plenary meetings, report to National Assembly Standing Committee; respond to oral questions from the National Assembly’s deputies before the National Assembly or the National Assembly Standing Committee. 

+ Handle complaints, accusations relating to the State Audit’s performance.

9. Obligations of audited entities during the complaint processing duration

During the complaint processing period, audited entities are still obligated to comply with conclusions and recommendations of the State Audit in an adequate and timely manner, except when the Auditor General or a competent authority decides temporary suspension of such conclusions and recommendations.

10. Complaints and handling of complaints pertaining to audited entities

Complaints and handling of complaints pertaining to audited entities will be provided for as follows:

- During the auditing process, audited entities have the right to file their complaints to the Auditor General relating to acts of the Audit Team Leader, Audit Group Leader and members of an Audit Team when there is evidence that such acts are in breach of laws and may cause harm to legitimate rights and benefits of these entities.

- Within a permitted period of 30 days of receipt of audit reports, audited entities have the right to file their complaints to the Auditor General relating to evaluation, confirmation, conclusion and recommendations specified in these audit reports when there is evidence that these audit results are in breach of laws and may cause harm to legitimate rights and benefits of these entities.

- Procedure and process for handling of complaints that may arise from audit activities must comply with regulations laid down in the Law on Complaints.

- Rights and obligations of a complainer, respondent, complaint arbitrator, complaint handling person, arbitrator, legal assistance officer, enforcement of a complaint handling decision that has its legal value, and prohibited acts, will be consistent with the Law on Complaints.