Studying the satisfaction of the beneficiaries for the process and results of an audit of NTP-NRD conducted by SAV, thereby proposing the completion of the process, improving the usefulness of the audit results by the SAV.
Trang 1MINISTRY OF
FINANCE
MINISTRY OF EDUCATION AND TRAINING
ACADEMY OF FINANCE
By LAI PHUONG THAO
COMPLETING THE PROCESS OF AUDITING NATIONAL TARGET PROGRAM FOR NEW RURAL
DEVELOPMENT CONDUCTED BY THE STATE AUDIT OFFICE
SUMMARY OF ECONOMICS PHILOSOPHY
DOCTORAL THESIS
1
Trang 2HANOI 2020
Trang 4AUTHOR RELATED TO THE THESIS
1. Lai Phuong Thao, Do Quang Giam (2019) Japanese efficiency audit: Lessons learned for auditing national target programs for new rural development of Vietnam. Journal of Audit Scientific Research, Volume 143 9/2019, pages 8390.
2. Nguy Thu Hien, Lai Phuong Thao, Vu Thi Hai (2019). Applying the heat map
to assess potential risks in the audit national target program for new rural development conducted by the State Audit Office Journal of Finance & Accounting Research, Volume 12 (197)/2019, pages 2127
3. Lai Phuong Thao, Nguy Thu Hien, Vu Thi Hai, Bui Thi Mai Linh (2019). Applying the heat map: Inherent risk assessment potential in auditing. Journal
of Finance & Accounting research. No. 01 (5)2019, pages 1927
4. Le Huy Trong, Lai Phuong Thao (2017). Identify potential risks in mobilizing financial resources for the national target programs for new rural development. Retrieved at: State Audit Office website: http://baokiemtoannhanuoc.vn/chuyende/nhandienruirotiemtangtronghuydongcacnguonluctaichinhcho
chuongtrinhxaydungnongtho137552
Trang 51. The rationale of the research
The audit process in general and the audit process conducted by the State Audit Office of Vietnam (SAV) in particular are always the top concern of many subjects. Over the years, many researchers have tried to analyze and evaluate different aspects of the audit process with different auditing subjects. However, so far, the process of auditing national target programs (NTPs) by the SAV has not been consistent and studies on this topic continue to be implemented. This is because the NTP audit procedure implemented
by the SAV is difficult to monitor and measure, depending on the management's willingness and judgment of each individual, so it is difficult to have a unified view
NTPs are public investment programs that are important to the country's socioeconomic development. The National Target Program for New Rural Development (NTPNRD) is one of two NTPs being implemented in Vietnam. The program is performed in several phases, with the point of "starting point only but no ending point", the specific goals of the Program in each phase will serve the country's development target. The program involves large amounts of capital investment from the state budget as well as people’s budget so it receives a large concern of the whole society and the political system. Despite the fact that the NTPNRD audit has initially provided useful information
to the National Assembly, the Government, Ministries, and localities in organizing, managing, administering, implementing the Program, and auditing the NTPNRD still faces many difficulties and challenges. This situation requires more research on the auditing process for NTPs in general and for the NTPNRD in particular in the direction of improving the quality of the information provided by the SAV
With the theoretical gap in the conducted researches, based on practical requirements of the SAV, the author conducted the research: “Completing the
Trang 6The NTPNRD has being implemented in 63 provinces and cities across the country, so there have been studies on management, organization and implementation experience in some localities such as Pham Ha (2011) showed how to organize the implementation of the program in Quang Ninh province from selecting the implementation criteria to realizing the mobilization of internal strength from the community so that the province will soon reach the set target. Vu Kiem (2011) pointed out the direction, management, and organization of the Steering Committee at all levels in implementing the program to help Thai Binh leverage the advantages and overcome limitations to achieve the goals of the Program in each phase. Ba Thang (2011) pointed out the difficulties and challenges of Dak Lak province in the organization and implementation of the program, the root cause of the challenges that make the province’s NRD progress slow in comparison with the general plan. Thanh Tan (2011) studied the case of Yen Bai and Vu Kiem (2011) studied in Thai Binh province. All of these studies focus on analyzing and assessing the characteristics, organization, and management of each locality, from which to draw lessons or to propose solutions for the problems.
(2) Studies on the appropriateness of the criteria used for NTPNRD evaluation
Recent domestic studies on the NTPNRD have shown the importance and significance of the Program to the overall development of the country. According to the authors, although the NTPNRD has achieved significant results, there are still many issues which needed to considered, evaluated and adjusted so that Program outcomes can meet the expected goals of National Assembly, the Government and the expectation from people (Do Kim Chung and Kim Thi Dung, 2012, Budget Transparency Alliance, 2018). Although these studies do not directly involve the audit procedure of NTPNRD conducted by the SAV, they are great references when the SAV identifies potential risks in the procedure of auditing the Program
2.1.2. Studies on the audit process conducted by the SAV
The domestic research results show that the research on the content, procedures, and methods of NTP audits has received increasing attention from researchers. Aside from studies on the state budget auditing process by the SAV (Vuong Dinh Hue, 2004); procedure of auditing construction projects funded by the state budget conducted by the SAV (Tran Thi Ngoc Han, 2012) or developing scenarios for the
Trang 7et al. (2003), Nguyen Thi Kim Dung (2016) pointed out the necessity of auditing NTPNRD, the program quality criteria, and factors affecting the quality of program auditing in which auditing procedure is one key factor. But the authors have not clarified the specific limitation of each task in each step of the NTPNRD auditing procedure. Vu Thi Thanh Hai (2011) argued that auditing NTPs are operational audit which aimed to assess the Program's economics, efficiency, and effectiveness. Nguyen Tuan Trung (2015) developed the research of Nguyen Van Ky et al. (2003) and made the opinion that the auditing NTP is a combination of financial audits, performance audits, and compliance audits. In previous studies, most of the studies focus on auditing NTPs in general, specific studies in auditing NTPNRD are not numerous. However, some of these research results provide a new direction for the followup suggestions for further steps in the implementation of the NTPNRD audit procedure concerning the Program's specificity
2.2. Review of foreign research
2.2.1 Studies on NTPNRD
Some countries around the world also have movements to build new rural areas, such as the movement to build "new villages" (Saemaul Undong) in Korea in the 1960s (Tuan Anh, 2012); China, with many agricultural and rural development programs, such as the "fire show", aims to equip millions of farmers with advanced scientific ideas, fostering talents and improving their quality, the "Bumper Crop Program" helps the majority of farmers apply advanced science and modern management methods to develop agriculture and rural areas, the "Pooraid program", etc (Cu Ngoc Huong, 2006); in addition, US, Japan, Thailand, and some other countries also have programs geared towards agriculture, rural areas and farmers. Most of the studies on NTPNRD are focusing on the Program's implications for the country's development
2.2.2 Studies on the audit process conducted by the State Audit Office
In the early 1960s, under the pressure of that program auditing need to help improve the performance in subsequent stages of the program, the State Audit Office
of Japan conducted effective audits when auditing programs and projects to assess the implementation, utilization and direct results of programs and projects through
Trang 8benefitcost analysis, and impact assessment on beneficiaries, correctness, and appropriateness of the program and project for socioeconomic change, thereby proposing solutions for improvement (Kazuki H. & Shigeru Y., 2006). In the same study, the authors pointed out the steps to perform the audit, the audit process of project programs conducted by the State Audit Office of Japan which is an effective audit, so the criteria used to evaluate are criteria related to outputs and results of programs and projects.
Recently, global State Audit Offices face more and more challenges related to the quality of the information provided by the State Audit Offices. In addition to completing the system of international state audit standards, the audit process has also been focused on developing IDI (2009)
IDI (2012) in the manual for the implementation of the International Audit Standard for audit activities has cited the audits of social security programs and projects that applied operational audits with four steps in the auditing process to assess the economics, efficiency, and effectiveness of programs and projects It emphasized, from the findings made through the audit, the State Audit Office must assess the impact of those findings, and propose solutions to improve the following phases of the program and projects This document also initially addresses the problem of determining audit risk in the operational audit, as a basis for applying risk maps to assess risks of audits
Research on the audit process of national programs, projects, centers of health and human services of the US has conducted research and built an audit process of six steps: (1) Preliminary planning set for audits; (2) Preparing the investigation of the audit object; (3) Designing data collection surveys; (4) Collecting and analyzing information; (5) Preparing audit report; (6) Evaluating the results after the audit. Research has also shown that the above six audit steps are not only closely intertwined, but also help to create useful audit evidence for drawing conclusions when auditing national programs and projects with audit content including financial and operational audits However, the audit process has not yet indicated the suitability of the process with the characteristics of the object being audited. (Department of Health & Human Services, 1994)
Steve G. Sutton and James C. Lampe (2012) gave an overview of the audit process quality assessment framework. The study has reviewed previous studies on
Trang 9Le Anh Minh (2014) outlined the audit standards for the Australian public sector audit process, the direction of technology affecting the audit process, and the performance evaluation activities of the audit process performed by the Australian Government, which made strategic suggestions to change the audit process of the State Audit Office of Vietnam However, the research results are based on the opinions of the State Auditors without the feedback on the audit process results from the audited subjects
In general, in recent years, researchers have made great efforts in approaching the audit process, the audit of programs and projects implemented by the State Audit Offices to provide solutions to complete the process, the audit activities of programs and projects under a different point of view and has achieved certain results. Thereby,
it not only contributes to clarifying the role and responsibility of the State Audit Offices to the performance of programs and projects in practice but also is a valuable source of theoretical material, as a premise for further studies
2.3 General conclusions from published studies and new points in the research of the thesis
2.3.1. Conclusions drawn from published studies
Firstly, there is no consensus on the content of the work in the process of auditing the NTPs in general, the process of auditing the NTPNRD in particular. The content of work performed in each work step of the audit process is also subjective, dependant on different perspectives
Secondly, up to now, there have been no domestic and foreign studies on the appropriateness of the contents of the work in the process of auditing the NTPs in general, the NTPNRD in particular based on assessing the satisfaction of objects using the information provided by auditors
In summary, in the past years, many authors have focused on the NTPs in general, the NTPNRD in particular and the audit process conducted by the SAV to show the achieved results and the shortcomings in the organizing, managing and implementing the Program as well as the advantages and limitations of the audit process and they have achieved certain results. However, there is a lack of research
Trang 10studies on the auditing process on NTPNRD conducted by SAV in specific conditions of Vietnam.
2.3.2. Research gaps and new points in the research of the dissertation
Studying the specific characteristics of the NTPNRD and SAV, which clearly indicates the effects of these characteristics to the process of NTPNRD audit conducted by the SAV;
Studying the appropriateness of the auditing process of NTPNRD through the feedback of the auditors participating in the audit, auditors of the advisory units for the General State Auditor for each step of the work in the audit process. Thereby, the dissertation focuses on studying the causes of inappropriate points in the process, creating a basis for proposing complete solutions;
Studying the satisfaction of the beneficiaries for the process and results of an audit of NTPNRD conducted by SAV, thereby proposing the completion of the process, improving the usefulness of the audit results by the SAV
3. The research objectives of the dissertation
To systematize, interpret, and clarify the theoretical basis of the procedure of auditing NTP NRD conducted by the SAV
To analyze and assess the status of the procedure of auditing NTP NRD conducted by the SAV
To propose orientation and solutions to complete the procedure of auditing NTP NRD conducted by the SAVcontributing to improve the audit quality
4. Research subject and scope of the dissertation
Research subjects
The objects of the dissertation are the theoretical and practical issues related to the procedure of auditing NTPNRD conducted by the SAV. To carry out this study, the subjects surveyed to collect information for the topic consist of auditors and representatives of the SAV advisory agencies; experts and representatives of audited entities from ministries, central functional agencies as well as provincial, district, and communal authorities in Vietnam
Scope of the research:
The study was carried out for auditing NTPNRD conducted by the SAV recently in Vietnam. The study focuses on analyzing and evaluating the procedure of auditing NTPNRD conducted by the SAV in localities, the study does not go into
Trang 11 Research limits
The dissertation only focuses on researching, analyzing, and evaluating detailed audit procedures implemented at localities without researching the comparative audit procedure in ministries and functional agencies conducted by the SAV for NTPNRD
Information summarizing and analyzing method: Secondary and primary information collected for research is classified, processed, and synthesized according to the system of research indicators serving the evaluation of the procedure of auditing NTPNRD conducted by SAV. After obtaining information
on the current status of the procedure of auditing NTPNRD conducted by SAV, the author applied data analysis methods such as descriptive statistical method, comparison method, scoring method, and priority ranking method
6. The scientific and practical significance of the thesis
The completion of the dissertation has scientific and practical significance as follows:
Theoretically: The dissertation is a scientific research document for theoretical
issues on NTPs, management mechanisms, auditing activities for NTPs of state audit agencies. This theory can be the premise and basis for forming the theory for the types of thematic audits performed by the SAV
Practically: The dissertation studies the current situation of the NTPNRD
auditing procedure conducted by the SAV, thereby proposing several solutions and recommendations to contribute to the completion of the auditing NTPNRD conducted by the SAV. The findings of the dissertation are the manual to the SAVs in
Trang 127. Dissertation structure
In addition to the introduction, conclusion, list of tables, diagrams, references, and appendices, the thesis consists of 3 chapters:
Chapter 1: Basic theories of process of auditing the national target program conducted by the State Audit office.
Chapter 2: Current status of process of auditing the national target program for new rural development conducted by the State Audit Office of Vietnam.
Chapter 3: Solutions to complete the process of auditing the national target program for new rural development implemented by the State Audit Office of Vietnam.
CHAPTER IBASIC THEORIES OF PROCEDURE OF AUDITING THE NATIONAL TARGET PROGRAM CONDUCTED BY STATE AUDIT OFFICE
1.1. GENERAL THEORY OF STATE AUDIT OFFICE
1.1.1. The concept of State audit office
1.1.2. State audit concept
The State audit office is a professional organization of the state administrative apparatus. State audit activity is the process of collecting audit evidence objectively, independently, systematically to determine compliance with the law in management and use of finance and public properties. Thereby implementing accountability to the legislature, law enforcement, people about the economics, efficiency, and effectiveness of programs and projects funded by the State budget
Trang 13(2) The organizational model of the SA office under the executive (Government): China, Japan, Thailand, Sweden, Laos, and some other countries
(3) The organizational model of the SA office under the legislature (parliament): USA, Russia, UK, Denmark, Australia, Netherlands, and many other countries
(4) The organizational model of the SA office belongs to the head of State (President): South Korea, India, Bangladesh, Paraguay, and some other countries apply
1.2. BASIC THEORY OF NATIONAL TARGET PROGRAM
1.2.1. The concept of the target program and national target program
Target program: It is understood that a public investment program includes projects aimed at realizing one or several government objectives in a certain industry or sector that are facing urgent issues to be addressed
National target program: A public investment program aimed at realizing the socioeconomic objectives of specific periods nationwide
1.2.2. Characteristics of target program, national target program
Characteristics of Target program: The target program usually has a narrow scope in a certain industry or territory, the influence of the program is therefore also limited in a certain scope, indepth content according to the problem needs to be solved in each region or field, the program implementation time can be many years.Characteristics of National target program:
Regarding the content: The NTP includes sustainable development programs associated with the country's comprehensive development strategy in a specific period, deeply affecting people's lives
Trang 14 Regarding the structure of capital sources: The capital for implementation of NTPs is usually from many sources such as Central budget sources; Local budget sources; Legally mobilized resources from organizations, businesses, and the community; Credit funds; and integrated resources from other programs and projects,
so the management will be very complex, requiring scientific management and administration
Regarding the regulations on management and administration: The management and administration of NTPs from the central to local levels with specific powers and obligations of each unit
1.3 PROCESS OF AUDITING NATIONAL TARGET PROGRAMS CONDUCTED BY STATE AUDIT OFFICE
Firstly, preparing for the audit
(1) Prepare, approve and send the survey outline; (2) Collect information of NTPs; Review of collected information and internal control system of the audited entity; Identify audit risks and critical contents of the audit; (5) Plan the audit
Secondly, implementing the audit
Auditors deploy the contents established in the general audit plan in general and the detailed audit plan in particular, through audit methods and techniques to collect audit evidence in a sufficient way, and reliable basis for making conclusions
Thirdly, preparing and approving the audit reports
The auditors must collect all audit evidence in order to make comments and assessments on the contents of the audited NTP, from which to prepare audit records and audit reports
Fourth, monitoring and inspecting the implementation of audit conclusions, recommendations
Monitoring and inspecting the implementation of audit conclusions and recommendations is a separate step of the State audit. This activity demonstrates the competence and responsibility of the State audit in evaluating the implementation of the audit conclusions and recommendations made by the State audit office to the audited entity and the settlement of issues raised in the audit reports
Trang 151.4. EXPERIENCE OF SOME COUNTRIES IN THE WORLD ON THE NATIONAL TARGET PROGRAM AND LESSONS LEARNED FOR VIETNAM
Firstly, determine the scope and content of the audit in accordance with the ability to perform, focusing on major issues that are decisive to the effectiveness of the program, avoiding spreading, dispersing resources, reducing quality. amount and efficiency of auditing;
Secondly, it is necessary to arrange a reasonable time and personnel so that the auditor can deeply assess the implementation situation, evaluate the use of program and project outputs, evaluate results, and evaluate them the adaptability of the program in the socioeconomic development;
Thirdly, the State audit office needs to apply expert methods, with consulting of experts from specialties related to projects in the NTPs into expert contracts for hightech work sections such as formulating evaluation criteria;
Fourthly, to make the audit process more transparent, and at the same time help the auditors have more reference information, the SAV should apply information technology in updating electronic diaries, in reporting progress of audit inspection teams, in requesting audit inspection teams to review the work of the team, to assign responsibilities to each auditor when the audit content is missed;
Fifthly, it is necessary to attaching importance to organizing the evaluation and drawing experience after each audit phase to review and to carefully evaluate the limitations in order to draw experience before conducting the audit for the next batch.Sixthly, it is essential to surveying to collect feedback on the satisfaction of the subjects using information from the NTP audit results to evaluate the effectiveness of the audits