Prime Minister Nguyen Tan Dung has ratified the Accounting and Auditing Strategy to 2020, with a vision towards 2030, in a bid to build up a full legal framework based on the latest practice of international accounting and auditing. This is an important prerequisite and driving force to improve the level of accounting and auditing, and the efficiency and transparency of the country's economy. To learn more about this issue, the Vietnam Business Forum has an interview with Dr Dang Thai Hung, Director of Accounting and Auditing Regime Department, the Ministry of Finance. Hai Ly reports.
How does the Accounting and Auditing Strategy to 2020, with a vision to 2030, mean to accounting and auditing activities in Vietnam?
Like other social fields, accounting and auditing activities need well-defined strategies to develop because they provide directions, objectives and solutions to reach such objectives. This is the first time in more than 50 years of accounting development and 20 years of independent audit presence in Vietnam the Prime Minister approved a strategy for long-term development of this sector.
Accounting and auditing field functions to formulate an economic, financial and budgetary information system for the government to manage and decide economic matters and for organisations to make decisions on the issue, and plays an important role in national economic development over time. Therefore, improving the quality of accounting and auditing information plays an increasingly important role for national development, especially in the context that Vietnam is integrating more deeply into the world economy.
The Accounting and Auditing Strategy to 2020, with a vision to 2030, is placed in the above context, aiming to create an accounting and auditing system of Vietnam to meet management requirements of socialist-oriented market economy and gradually match international practices. Vietnam strives to have a real accounting and auditing system of a market economy and match international practices by 2030.
How will the Ministry of Finance play its part in specifying this strategy?
The Ministry of Finance is assigned to act as an advisory body to the Government on accounting and auditing activities. To carry out the strategy, the Ministry of Finance has four main responsibilities:
Firstly, leading the implementation of the strategy, approving and directing the implementation of strategy plans in accordance with specific development phases and annualised contents
Secondly, guiding ministries, agencies and localities with assigned functions to build and implement strategy-related programmes. As accounting and auditing activities cover the entire national economy, the Ministry of Finance is responsible for specifying strategy steps and scopes for ministries, management agencies and localities
Thirdly, coordinating with relevant ministries, agencies and localities to examine the implementation of the strategy, draw experience every year and make five-year periodical reviews.
Fourthly, coordinating with related agencies to propose the Prime Minister to decide on adjustments to strategy objective contents in case of necessity.
What contents will the Ministry of Finance focus on implementing in 2013 to concretise this strategy?
The accounting and auditing strategy covers many activities where the perfection of the legal framework for accounting and auditing is a very important content. Hence, in 2013, we will accelerate the completion and issuance of circulars on the enforcement of Independent Audit Law, 37 Auditing Standards issued by the Ministry of Finance issued (to be come into effect on January 1, 2014), build and complete draft decrees on penalties in administrative violations in accounting and independent auditing.
The Finance Ministry will soon recommend amendments to the Law on Accounting 2003 to suit current economic conditions, continue updating corporate accounting standards, especially activities related to stock - financial markets, towards international standards, issue several accounting regimes for State reserve operations, foreign debt repayment fund, and public accounting, issue legal documents for the General State Accounting model.
Five major accounting and auditing goals towards 2020
- Formulating a complete accounting and auditing system
- Building a legal framework system for accounting and auditing in line with international standards.
- Enhancing State management roles over accounting and auditing, stepping up accounting and auditing monitoring, supervising the enforcement of accounting and auditing laws as well as accounting and auditing practice.
- Developing strong accounting and auditing human resources on par with developed countries in the region in both quantity and quality.
- Strengthening cooperation and mutual recognition in accounting and auditing with international accounting and auditing organisations in the region and in the world.
The Ministry of Finance has suggested the Government to upgrade the Department for Accounting and Auditing Regime to the Accounting and Auditing Monitoring and Supervision Administration to match requirements of accounting and auditing policymaking, administration and supervision in the economy. This decision is in line with the Accounting and Auditing Strategy towards 2020, with a vision to 2030.
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