Summary of philosophy of law doctor’s thesis improving legals on state audit to meet requirements on building the socialist law state of vietnam

ACADEMY OF PUBLIC ADMINISTRATION NATIONAL POLITICS HOCHIMINH DANG VAN HAI IMPROVING LEGALS ON STATE AUDIT TO MEET REQUIREMENTS ON BUILDING THE SOCIALIST LAW STATE OF VIETNAM Specialis

ACADEMY OF PUBLIC ADMINISTRATION NATIONAL

POLITICS HOCHIMINH

DANG VAN HAI

IMPROVING LEGALS ON STATE AUDIT TO MEET REQUIREMENTS ON BUILDING THE SOCIALIST LAW STATE OF VIETNAM

Specialisation : Theory and History of State and Law

SUMMARY OF PHILOSOPHY OF LAW DOCTOR’s THESIS

Hμ Néi - 2014

Danh mục công trình của tác giả

1 Chăn Seng Phim Ma Vông (2003), "Xu hướng phát triển thương mại

quốc tế hiện nay và những vấn đề đặt ra với các nước chậm phát

triển", Tạp chí Giáo dục lý luận, số 4 (73), tr.34-36

2 Chăn Seng Phim Ma Vông (2003), "Định hướng và giải pháp đẩy mạnh

xuất khẩu của Lào trong những năm tới", Tạp chí Thương mại, (20),

tr.12-13

3 Chăn Seng Phim Ma Vông (2003), "Quan hệ thương mại song phương

Lào - Việt Nam và vấn đề đặt ra", Tạp chí Quốc phòng toàn dân, (7),

tr.78-80 + tr.65

4 Chăn Seng Phim Ma Vông (2003), "Đào tạo, bồi dưỡng đội ngũ cán bộ

quản lý nhà nước về thương mại Lào hiện nay - Phương hướng và giải

pháp", Tạp chí Lịch sử Đảng, (7), tr.56-59

The work was completed at the Academy of Public Administration

National Politics Ho Chi Minh

Instructor: Pro, Sc.Ph.D Dao Tri Uc

Reviewer 1:

Reviewer 2:

The thesis will be defended before the Board of Academy of Public

Administration National Politics Ho Chi Minh

On hour 2014

Thesis can be found at: National Library and Library of Academy of Public Administration National Politics

Ho Chi Minh

INTRODUCTION

1 Nessity of topics

Platform for national construction in the transitional period to socialism (supplemented and developed in 2011) has stated: "State power is unity; the assignment, coordination and control among the agencies in the implementation

of the legislative, executive and judiciary" It has shown to be required to strengthen the Party's control of state power, in order to enhance effectiveness and efficiency enforcement of state power To enhance the control of state power at the request of the party, should have the tools to control the effectiveness and efficiency, including the State Audit Office With its position

as the bodies of state financial inspection by the National Assembly to establish, operate independently and only obey the law, state audit testing tools will be most effective financing of the State for all agencies, organization, management units, funded, state money and property, particularly in terms of the Party and State are stepping up the fight against corruption and waste in Vietnam today State audit activities in Vietnam over time there have been important developments, however, have yet to meet the requirements of the construction and development of the country, especially the construction requirements socialist law State of the people, by the people and for the people One of the reasons for this situation is due to the provisions of the law on state audit in Vietnam are still many limitations and shortcomings Therefore, the research on improving the legal auditing is matters urgency both theory and practice in Vietnam, in order to enhance the performance of the SAV

2 Subjects and scope of the Thesis

2.1 Subjects of the Thesis

The object of the thesis is legal on the state audit in Vietnam; principles, auditing standards of INTOSAI and the law on state audit of some countries around the world

2.2 Scope of the Thesis

The thesis studied the provisions of the state audit law over time, and guidelines and regulations to implement the State Audit Law in the relevant legal documents from the State Audit Office was established (11/07/1994) to date

3 The purpose and mission of the Thesis

3.1 The purpose of the Thesis

On the basis of theoretical research and assess the status of the state audit law, the thesis proposes perspectives and solutions to improve the law on state audit meet the requirements of building the Socialist law state today

3.2 The mission of the Thesis

Firstly: Analysis of the theoretical basis for improving the law state audit; establish criteria and conditions to improving state audit law; analysis required for improving the law in terms SAV building a socialist law state Vietnam and then justifying solutions for improving the state audit law in Vietnam;

Secondly: Analyze and evaluate the state of the state audit law and practical implementation over time;

Thirdly: On the basis of research and analysis of the theoretical issues, the status law for state audit; practical implementation of the law on state audit last time and reference experience selective state audit law of some countries around the world; perspective and propose solutions in order to improve the content and form of the law on state audit meet the requirements of building a socialist state law and international integration

4 Research Methodology

The Thesis using synthetic methods; methods which are mainly: Analysis, synthesis, history, statistics and comparison

5 The new contributions of the thesis

- Introduce concepts and adjust content, specify the characteristics and role

of law in the state audit; establish criteria and conditions to ensure improving law on state audit

- The study required by socialist State law Vietnam for improving the law

- Propose the views and the solutions completed law on state audit meet the requirements of building a socialist law state in Vietnam

6 Structure of the Thesis

Apart of the introduction, conclusion and references, the content of the thesis is structured into 4 chapters, 12 section, as follows

Chapter 1 OVERVIEW

As an organizational models and new operations in Vietnam should research issues both theory and practice to use the valuable experience in Vietnam is a very important issue for the development of SAV Scientific research activities on state audit in Vietnam was officially launched in 1995 To date, there have been a number of scientific research projects at State, Ministrial and unit level on the organization and operations of the state audit; much of the project documents, scientific papers, articles of scientists, managers and abroad presented in scientific conferences, professional journals and the mass media Assistance from the Asian Development Bank, Audit conducting research on legislation and assist in capacity building, training of the two phases has contributed greatly to the deployment scientific research in many fields Then there is the huge help of German GTZ project done for many years has made many important documents The scientific works in domestic and foreign related thesis is divided into two main groups: Works on researching state audit and legislation on state audit and one related to improving law on state audit

On the basis of researching the scientific work has been published in domestic and foreign - related topic of the thesis, comments can draw an overview of research results as follows: The research work was issues related to the thesis on certain aspects of the theory and practice of law enforcement in the state audit certain historical period, the study results have confirmed the position, the important role of SAV in the organization and operation of the state apparatus, in the preventing corruption, waste, and use effectively saving budget, public money and property; toxicity establishment of SAV in the public financial control and public property; constitutional basis of the legal status of SAV; classification, assessment and organizational models the mechanism of action of the State Audit Office as well as organizational issues functions, duties, powers, subjects and scope of the State Audit Office However, not much research has focused on improving the law on state audit, the complete theoretical issues law on state audit has not been elucidated and has not been studied systematically, the status of state audit law and organizations perform audits of state law unclear to evaluate the strengths, limitations and only cause

of the limitations of the law on state audit in Vietnam, there is not a complete master of the legal dissolution of the state audit to meet the requirements of building the rule of law in our country today

Based on the research results of scientific works mentioned above, the author will inherit thesis, using reasonable to implement my research, at the same time, the direction of dissertation research is to clarify and further elucidate the theoretical issues and practical completion of the state audit law in the context of building a socialist rule of law in Vietnam

- In terms of theories, the issue needs further study and solution include: concept, content adjustment, characteristics, the role of the law on state audit; proposed criteria and complete ensure perfect conditions the law on state audit; analysis requirements of state laws in Vietnam to complete the law on state audit, research and reference experiences selective law state audit of a number

of countries in the world

- In terms of practical issues that need further research and resolve include: Analyze, evaluate comprehensive, systematic process of establishment and development of the state audit law, analysis, evaluation cost advantages, limitations and restrictions of the causes of the legal system of the state audit in Vietnam

Based on the research, comprehensive analysis of theoretical issues, the status of laws and law enforcement practices of the state audit last time, reference may experience selective law on state audit of a number of countries around the world, thesis proposals and views synchronized solutions in order to improve the legislation on state audit meeting the requirements of building the rule of law, strengthening the power control of state in Vietnam

Chapter 2 RATIONALE OF COMPLETENESS OF THE STATE AUDIT LAW MEETING THE REQUIREMENTS ON BUILDING SOCIALIST LAW STATE OF VIETNAM

2.1 CONCEPTS AND CHARACTERISTICS OF STATE AUDIT

2.1.2 The concept and characteristics of the SAV

State Audit Office has following characteristics:

First, the state audit is an external financial review agency

Second, the activities of the State Audit Office and the independent naturally only comply with the law; honestly and objectively

Third, the object of the State Audit Office is the management and use of the budget, public money and property

Fourth, the state audit function including financial statement audits , compliance audits and audit activities for the management and use of the budget, state money and property

Fifth, the state audit activity carries very high professionalism

Sixth, subject to audit activities - the auditors is just public servants, both have specific regulations on standards, accountability, authority, have the right

to an independence and obey only the law in the process of implementing audit Seventh, auditing contains much risky on professional and moral qualities

of auditors

From the analysis of the characteristics of the state audit activities mentioned above, can be drawn about the state auditing concept as follows : The state auditing is an financial examination body, operate independently under law, shall examine, evaluate and validate the accuracy and truthfulness of financial statements; compliance with laws; economy, efficiency and effectiveness in the management and use of the budget, public money and property

2.2.CONCEPTS, CONTENTS OF ADJUSTMENT, CHARACTERISTICS AND THE ROLE OF LEGAL ON STATE AUDIT

2.2.1 The concept and content of the law adjusted state audit

From the analysis of the characteristics of law in the field of legal on state audit, the thesis put a definition of the state audit as an integral part of the legal system as follows: Legislation on state audit as overall legal by the state agencies have the authority to issue and guarantee made to regulate social relations arising in the organization and operation of the audit for the purpose of

strengthening the control supervision of the State in the management and use of the budget, public money and property, contributing to practice thrift, combating corruption, loss, waste, detect and prevent violations of law, improve efficiency of using budgets, public money and property

Content governed by the laws of the state audit consists primarily of legal groups: legal status of SAV; functions, duties and powers of the state auditing; objectivity and scope of the SAV; mechanism of action of state audit; organizational models and staffing of SAV; monitoring activities and handling legal violations on state audit

2.1.2 Characteristics of the law on state audit

First, Law on State Audit has just prescribed administrative in nature, both the procedural provisions of nature, also has many regulations identifiable professional career

Second, the law on state audit regulations implementing activities of state power in the inspection and supervision of the management and use of financial resources of public money and property, in order to avoid loss and waste and improve the efficiency of using resources

Third, the law of the state audit adjustments including legal relations arising in the organization and operation of the state audit

Fourth, sources of legal on state audit are comprehensive, including provisions in the Constitution of the State Audit, State Audit Law and guiding documents and the relevant laws

Fifthly, the law on state audit in Vietnam is quite new, are developed and gradually improved

2.1.2 The role of the law on state audit

First, to institutionalize the Party's policies on the development of the SAV Second, the legal basis for external financial control activities is independent

Third, the means to strengthen supervision of the State for management activities, using public money and property

Fourth, contributing to the transparency of financial information and healthy national financial system

Fifth, contribute to enhance the effectiveness of law enforcement and perfect the legal system

Sixth, contributing to the strengthening of coordination relationship between components of national audit system

2.3 COMPLETION CRITERIA AND CONDITIONS WARRANT THE COMPLETENESS OF LAW STATE AUDIT

2.3.1 Completion criteria

2.3.1.1 Criteria for the content

Completing the State Audit Law has to meet the following criteria :

- Have content in accordance with viewpoints and policies of the Party of the SAV development;

- Compliance with the of political, economic and social conditions

- Consistent with the principles and requirements to build a socialist law State of Vietnam

- Consistent principles, auditing standards and practices of the INTOSAI auditing legal of the countries in the world

2.3.1.2 Criteria on form

Formal criteria include:

- Comprehensiveness of the legal system of the state audit

- The integrity of the legal system of the state audit

- Uniformity of the legal system of the state audit

- To ensure transparency, efficiency and feasibility

- Text form

- Legislative technique

2.3.1.3 Criteria for implementation

- Propaganda, education on legals on state audit

- Training staff

- Check and supervise the implementation and handling of violations

2.3.2 These conditions ensure complete legislation state audit

2.3.2.1 Ensurance on economy

For the law on state audit is done strictly necessary to pay attention to the issues such as funding for the deployment of communication and dissemination, education on law; operating funds and facilities required in accordance with specific state activities are independent and compliance with the laws

2.3.2.2 Ensurance on politics

To implement the State Audit functions and tasks assigned, the need to strengthen the leadership and guidance of the Party and State for the SAV, primarily for improving the State Audit Law

Second, awareness of legal entities engaged in audits

Third, qualifications, capabilities and political, ethical staff, civil servants directly involved in audit work

Fourth, the coordination mechanism in performing the audit

Fifth, operational examination, preventive monitoring and preventing violations of law in audit activities

2.4 REQUIREMENTS OF SOCIALIST LAW STATE OF VIETNAM FOR COMPLETION OF THE STATE AUDIT LAW

Building Socialist law state of Vietnam according to the above viewpoints

of the Party, set out the requirements for improving the law on state audit as follows:

First, the principle of state power is unity , decentralisation, coordination and control among the agencies in the implementation of the legislative, executive and judiciary One of the basic points of building a socialist law state

of Vietnam is the notion of state power is unified with the assignment, coordination and control among state agencies in the implementation the legislative, executive and judicial Therefore, the requirements of completing the state audit law is to establish the legal status of the SAV position is consistent with the financial inspection agency by high most active independent and subject only to the law and to strengthen the inspection and control of the State in the management and use of the budget, public money and property Second, strengthen supervision and monitoring of the National Assembly

of People for the management and use of the budget, public money and property As an agency inspection is the highest, SAV plays an important role in providing information for monitoring, budgeting decisions and approve the budget annual of Congress; at the same time, serve the people monitoring Therefore, the requirements of completing the state audit law must meet the monitoring requirements of the National Assembly and People's supervision for the management and use of funds books , money and public property

Third, to contribute to ensuring transparency and soundness of economic relations, finance, improve efficiency of budget and state assets In Vietnam, the establishment and development of state audit agency comes from the demanding requirements of the innovation and the development of market economy , make the process of democratization and state building socialist rule

of law - state of the people, by the people and for the people Development of state audit is an objective requirement of the macro-management of the national economy, especially strengthened inspection and control of the State to using savings, budget effectively and national assets, anti- corruption Therefore, the requirements of State AuditLlaw requires socialist Vietnam completed legislation to state audit determined the role of state audit for the national economic development

Fourth, contributing to prevention of corruption, cleaning up the state apparatus in Vietnam today In the present context, the Party and State considered corruption as a "disaster" and the fighting against corruption is the task of the entire Party, people and the whole political system With its position

as the financial inspection agency, independent operation and compliance with the law, the SAV is one of the effective tools having an important contribution

to the fight against corruption in Vietnam today Therefore, the requirements of State law requires socialist Vietnam completed legislation to state audit identified the roles and responsibilities of the state audit office in the fight against corruption

2.5 LEGALS ON STATE AUDIT OF OTHER COUNTRIES AND LESSONS FOR VIETNAM

2.5.1 Legals on state audit of some countries

2.5.1.1 Legal on state audit the Federal Republic of Germany

a) Legal status: Legal status of federal court of audit is specified in the Constitution and independent of Congress and the Government State Audit is a supreme body of the federal and is an agency independent financial examination, only in compliance with the law

b) The functions, duties and powers: Federal Court of Audit function test report as well as the settlement of the compliance and effectiveness of the management of the budget and economic management

The mission of the Federal Court of Audit include : Auditing the entire management and use of the Federal budget; advise Parliament and Government, Federal Council; report the results of the annual audit to the National Assembly

as the basis for release of government accountability, evaluation correctness and feasibility of the annual state budget bill, projects of national key works

Federal Court of Audit powers, including: Reviewing and providing unlimited information; involved in the process of promulgating regulations on settlement and auditing irregularities treatment recommendations

c) The object and scope of an audit agency under federal management, special assets and enterprises of the Federal; legal utilities under public law and federal level directly; the social insurance agency under Federal and State, if the agency receives federal grants or federal stood surety ; private enterprises under the Law of Federal capital contributions; organizations not under the management system of the Union if the management or organization receiving federal funds

d) Operating Mode: Audit the Federal Council operating under the mechanism, the Council decided to be in state audit agency

e ) Organizational structure and personnel: Federal Court of Audit including the regional audit offices and audit departments At the State agency established its own audit Federal Court of Audit’s Chairman of the National Assembly and the Federal Council elected by the Federal Government's proposal for a term of 12 years and no re-election

e ) Handling of violations : Federal Audit Law has one article concerning the handling of violations against members of Federal Court of Audit

2.5.1.2 Legal on state audit of the People's Republic of China

a) Legal status: Legal status of national audit office is specified in the Constitution, the state audit agency established by the State Council, under the leadership of Prime Minister of the State Council National Audit Office is the highest organ of state, perform auditing tasks independently according to the law

b ) The functions, duties and powers

- Functions and audit tasks: Perform audits on the implementation of the budget of the central government and the Prime Minister reported the results on their audit activities

- Powers auditing requirements to provide information, inspection, investigation, application of compulsory measures and propose rectifying mistakes, announced the results of audits, sanctions, transfer the files to the authorities

c ) The object and scope of the audit: The revenues and expenditures of the agencies under the State Council, local governments at all levels, financial institutions and currencies of state agencies and enterprises An audit by the military 's Central Military Commission regulations

d ) Mechanism of action: The mechanism operating under the regime of leadership, the audit agency at the local level made the right equation independent audit in accordance with law, is responsible before the same level People's Committees and agencies superior audit

e ) Organizational structure and personnel: Audit was established at the central government level and at the district level upwards General Auditor approved by the National Assembly, the President appointed

e ) Handling of violations: Sate Audit Law of PRC has 1 chapter provides for liability provisions quite adequate and specific measures to prevent and sanction (administrative , disciplinary, criminal) for violations

2.5.1.3 Legal on State Audit of Korea

a) Legal status: Board of Audit and Inspection of Korea (hereinafter referred to as BAI) is a constitutional agency, affiliated and independent President while performing the task

b ) The functions, duties and powers : the settlement tests , revenues and expenditures of the State and the other state settlement, the administrative activities of the state and its officials

c ) The object and scope of an audit of the State Accounts; account of the provincial government; account of the Central Bank and the account of the legal entity which has attracted more than half of the State; unit of account that under the provisions of other laws shall be subject to audit by the BAI In addition to the mandatory audit object above, the BAI also objects voluntary audit

d ) Operating Mode: BAI mechanisms work colleagues, council members decided by a majority of the important work

e ) Organizational structure and personnel: BAI is organized on the principle of centralization and uniformity of services including functional, specialized audit and audit the regional unit BAI chairman appointed by the President with the consent of Parliament, with the 04 year term and may be reappointed for one term

e ) Handling of violations : Law on State Audit of Korea, have one thing on punishment, specifying the level of imprisonment, fined or disciplined for violations

2.5.2 The lessons for improving the state audit law of Vietnam

Fisrt, whether organized under the SAV model is also designed to control the system from the external to the auditees

Second, independent objectivity is vital issue of principles in audit activities

Third, to ensure the independence of the State Audit Office, General- Auditor of the National Assembly elected for a term longer than the term of the National Assembly; SAV operating funds by the National Assembly at the proposal of the General-Auditor

Fourth, the State Audit Office to audit the financial statements, audit compliance and audit activities for all agencies and organizations involved in the management and use of budgets, money and property

Fifth, to state audit operate effectively it should define the legal status of SAV in the Constitution Depending on the specific conditions of each country, the provisions of the State Audit Institutions can be defined in a chapter, section, or part separately cataloged common or independent institutions located

in the same program with the branch agencies the authority , and the principle

of independence and Supreme of agency is still constitutional content are most popular

Sixth, there should be specific provisions for handling violations of state audit law, especially those failing to perform or not perform fully the conclusions and recommendations of the State Audit Office

Chapter 3 HISTORY AND DEVELOPMENT AND CURRENT SITUATION

LEGAL ON STATE AUDIT IN VIETNAM

3.1 HISTORY AND DEVELOPMENT OF LEGAL ON STATE AUDIT IN VIETNAM

3.1.1 Generalizing the process of formation and development of the State Auditor in Vietnam

State Audit Office of Vietnam was established by Decree No.70-CP of July

11, 1994 of the Government and from 01/01/2006 operating under the provisions of the State Audit Law After nearly 20 years of operation, the SAV has gradually affirmed its position, its role in the structure of the state apparatus; affirmed the necessity and indispensable for the operation of the agency as one

of the effective tools of the State in the inspection and control operations budget management, money and state assets in the economy socialist-oriented market

3.1.2 The process of formation and development of the law on state audit in Vietnam

3.1.2.1 Period from inception until the National Assembly passed the State Audit Law

In the first phase, SAV organized and operated under two legal documents

is 07.11.1994 Decree No.70-CP dated 11 July, 1994 of the Government on the establishment of state audit office and Decision 61 dated 24 January, 1995 of the Prime Minister promulgating the Charter on organization and operation of the SAV

To ensure the legal basis for state audit activity in conditions no State Audit Law, in the process of finalizing the legal system, the Socialist Republic

of Vietnam has added a number of legal in the law governing the operation other areas of the relationship arising audits to ensure full legislative audit activity in those areas, namely: the State Budget Law, the Law on State Owned Enterprises, Law on the State Bank of Vietnam However, it is easy to see the system prescribed in the early stages of a new state audit established several regulations scattered in different documents, are generally lacking and inconsistent Adjustment directly on the organization and operation of the SAV

is only available Decree of the Government and the decision of the Prime

Minister should review the written forms, the legal value is not high, not inclusive of problems of organization and operation of the SAV

Content of legal on state audit in this stage is also very limited: The legal position of the State Audit of Government agencies, state audit activities under the leadership of Prime Minister; SAV only performed the function assigned tasks auditing financial statements; objects are audited accounting data and accounting statements are only object of its financial statement audit, not covering all subjects of the State Audit activities related to management use of budget, public money and property To overcome the above limitations; simultaneously, a complete step legal basis for the organization and operation of the SAV in accordance with the requirements of the public administration reform state government dated 13 August, 2003 issued Decree No 93/2003 /

ND - CP regulating functions, tasks, powers and organizational structure of the SAV Decree No 93/2003/ND-CP of the Government amending and supplementing a number of functions, tasks, powers and organizational structure of the state audit, namely: Audit is an agency of the Government; defined relatively complete and comprehensive state audit function of the audit

of financial statements; audits assess compliance with the laws, economic management, budget and use of public property; additional task of state management sectors; continue to assert centralized organizational model, unified SAV, defined organizational structure of SAV has 19 units, including 16 units to help implement the General Audit functions, tasks and 3 public utilities; have a separate articles on the General- Auditor

However, through practical activities, Decree 93/2003/ND-CP and legal documents on the organization and operation of SAV in this period has revealed the inadequacies and limitations:

First, there is no legal documents stipulating the organization and fully operation of SAV Directly regulating activities of the SAV is the by laws

Second, the legal status of the SAV is low, is not commensurate with the functions and duties assigned

Third, more specific issues related to the activities of the SAV has not been fully defined, uniform or not fully meet international integration requirements for building a sound financial background, public and transparency as principles for audit activities; auditing activities; validity of reports of audit results; The auditees’s responsibilities and audit rules on disclosure of audit results

Fourth, many issues related to the State Budget Law and the State Audit Office in legal documents related only at the general rules, has not been concretized lead to difficulties in the process implementation as prescribed submission deadlines State budget settlement reports; audit budget settlement after the National Assembly approved; SAV’s responsibilities for audit reports

3.1.2.2 State Audit Law has come into effect today

State Audit Law was approved by National Assembl on 7th Session, adopted on 14/6/2005 and have effect from 01/01/2006 This is an important law in the legal system of the State, as a legal instrument to strengthen inspection and control of state financial resources, and the legal basis highest