Each accounting unit must establish an internal control system to meet the following requirements:
1. Internal control means establishment and implementation of internal mechanism, policies, procedures, and regulations conformable with law meant to prevent, discover, and deal with the risks and meet the set requirements.
2. Each accounting unit must establish an internal control system to meet the following requirements:
a) Its assets are protected from improper and inefficient use;
b) The transactions are approved intra vires and fully recorded as the basis for making and presenting truthful and reasonable financial statements.
3. Internal audit means inspection, assessment, and supervision of the completeness, appropriateness, and effectiveness of internal control.
4. Objectives of internal audit:
a) Inspect the compatibility, effectiveness, and efficiency of the internal control system;
b) Inspect and certify the quality, reliability of economic and financial information of the financial statement and administrative accounting report before they are submitted;
c) Inspect the adherence to the rules for operation, management, observance of law, regulations on finance, accounting, policies, resolutions, and decisions of the heads of the accounting unit;
d) Discover weaknesses in the management system; propose solutions for improvement of the management system of the accounting unit.
5. The Government shall regulate internal audit of enterprises, regulatory agencies, and public service agencies.
Section 5. STOCKTAKING, PRESERVATION AND RETENTION OF ACCOUNTING DOCUMENTS
Article 40. Stocktaking
1. Stocktaking means measurement of quantity, verification and assessment of quality and value of existing assets and sources of capital at that time in comparison with figures in the accounting books.
2. An accounting unit shall conduct stocktaking in the following cases:
a) At the end of the annual accounting period;
b) Total division, partial division, consolidation, merger, dissolution, shutdown, bankruptcy, transfer, or lease of the accounting unit;
c) Conversion of type of business of the accounting unit;
d) Occurrence of conflagration, flood, and other unexpected damage;
dd) Re-evaluation of assets under a decision of a competent authority;
e) Other cases prescribed by law.
3. After the stocktaking is done, the accounting unit shall make a stocktaking report. In case of any discrepancies between the stocktaking result and figures on the accounting books, the accounting unit must determine the cause and record the difference on the accounting books before making the financial statement.
4. The stocktaking must truthfully reflect the assets and sources of assets. The persons who make and sign the stocktaking report are responsible for it.
Article 41. Preservation and retention of accounting documents
1. Accounting documents must be fully and safely preserved by accounting units.
2. In case of impoundment of confiscation of accounting documents, it is required to have a record and copies of the impounded or confiscated accounting documents; in case of loss or damage of accounting documents, it is required to have a record and copies of documents or a certification.
3. Accounting documents shall be retained for 12 months from the end of the annual accounting period or completion of accounting works.
4. The legal representative of the accounting unit is responsible for the preservation and retention of accounting documents.
5. Duration of retention of accounting documents:
a) For accounting documents serving management and operation of the accounting unit, including those not directly used for making accounting books and financial statements: at least 05 years;
b) For accounting documents directly used for making accounting books, financial statements, accounting books, and annual financial statements: at least 10 years, unless otherwise prescribed by law;
c) For historical accounting documents or those of economic, national security, or national defense importance: permanently.
6. The Government shall regulates types of accounting documents that need retaining, duration of retention, beginning time of retention mentioned in Clause 5 of this Article, places for retention, and procedures for destruction of accounting documents.
Tin liên quan
The company’s President shall be designated by the representative agency as prescribed by law
Working conditions, requirements and methods for convening meetings of the Board of members
Rights and obligations of other members of the Board of members
Discharge and dismissal of members of the Board of members
Regulations applied to state-owned companies
Wages, salaries, and other benefits of managers and Controllers
The company’s owner shall decide the number of controllers
The company’s President
Organizational structure of single-member limited liability company under the ownership of an organization
Obligations of the company’s owner