On January 22rd, 2019, the Government issued Decree No. 05/2019/ND-CP on internal audit. The Decree takes effect from April 1, 2019.
Accordingly, the Decree stipulates that enterprises must perform internal audit, including:
Listed company;
Enterprises where the State owns more than 50% of charter capital are parent companies operating under the model of parent company – subsidiary companies;
State-owned enterprises in which the parent company operates according to the parent-subsidiary company model.
These enterprises can hire an independent auditing organization to qualify for audit activities in accordance with the law to provide internal audit services. The hiring of internal audits of enterprises of the Ministry of Defense and the Ministry of Public Security shall comply with the regulations of the Minister of Defense and the Minister of Public Security.
In summary, Internal auditing helps enterprises achieve their goals through a systematic and disciplined approach to assess and improve the effectiveness of risk management, control systems and management processes, value protection for businesses.