How to determine a personnel structure of an internal audit department? Positions and responsibilities?
Generally, an internal audit department should have the following positions:
A person in charge of internal audit (or called “the Chief Audit Executive”), with the principal responsibilities as follows:
+ in charge of managing and directing the internal audit department to fulfill its responsibilities as stated in the Internal Audit Charter and comply with related regulations and standards;
+ taking the highest responsibility for the audit results performed by the internal audit department;
+ communicating with the board and management about all matters needed to experience the approval process as stated in the Internal Audit Charter, providing explanation about significant audit findings, and proposing requests related to the operation of the internal audit department.
(Reference to the Article 24 Decree No. 05/2019/ND-CP for more details).
Internal auditors are responsible for implementing the assigned audit engagements in compliance with related regulations and standards.
(Reference to the Article 23 Decree No. 05/2019/ND-CP for more details).
Assistants are responsible for supporting the Chief Audit Executive and Auditors to perform their works.
What should be noted for recruitment? Are their any statutory requirements for recruitment?
The only relevant regulation is Article 11 of Decree 05/2019/ND-CP, details as follows:
“Article 11. Eligibility standards of internal auditors as follows:
1. Hold undergraduate degrees in majors meeting audit requirements, acquire sufficient and updated knowledge about assigned internal audit sectors.
2. Have at least 5 years’ working experience in the industries relevant to their training majors or at least 3 years’ experience in working for their current employer or at least 3 years' experience in working in the audit, accounting or inspection field.
3. Acquire general knowledge and understanding about laws and business operations of audited units; have competence in collecting, analyzing, assessing and consolidating information; have knowledge and skills related to the internal audit.
4. Have not yet been subject to any discipline in a warning or severer form that is likely to be imposed on any violation arising from economic or financial administration or accounting activities or, at present, be not subject to disciplinary actions.
5. Meet other standards prescribed by audited units. “
In our opinion, beside the above requirements, enterprises should consider the following points:
- Candidates with good personal qualities about compliance, independence, and objectivity as these are the core qualities for internal audit.
- Candidates with personalities that are suitable for the jobs requiring efficient interaction with many people and in diversified situations.
- Candidates with professional certificates in internal audit because such candidates should own the right way of thinking and methodology about internal audit, and most of them are likely to aim at internal audit for their career development.