Internal Audit

• Businesses face difficulties in defining the position and function of the internal audit (IA) due to overlapping roles with other departments such as internal control, risk management, or compliance.
• Establishing the IA function poses challenges in complying with complex legal regulations and related requirements, especially in alignment with the corporate governance model.
• Ensuring the independence of IA is a significant challenge when the reporting structure might create conflicts of interest or influence IA’s objective.
• Understanding and applying IA methodologies according to orient risks can be challenging, particularly when linking business strategy, risk management, and IA remains unclear, asynchronous.

• Applying IA processes and techniques according to standards and best practices is a challenge when IA personnel need to continuously update their knowledge and skills to meet the evolving needs of the business, that requires significant resources and time.
• Recruiting, training, and developing IA personnel face a challenge in looking for labor and maintaining sufficient skills, technical expertise, and experience, especially in building a high-quality audit team.
• Resource planning in limited period of IA function establishment and operational and  puts pressure on businesses, especially when balancing the workload with existing personnel and limited financial resources.
• Evaluating and measuring the effectiveness of IA is a challenge as businesses must determine appropriate criteria and standards to ensure that audit activities achieve high efficiency and meet the requirements of related parties.

CIRCULAR 66, 67/2020/TT-BTC ON INTERNAL AUDIT

REGULATIONS Issued IA regulation templates, providing guidance on establishing, maintaining, and improving IA system quality.

CIRCULAR 08/2021/TT-BTC

Issued Vietnam IA standards and the code of ethics for the internal audit profession. The objective is to enhance the quality and transparency of internal audit activities.