Service internal audit Internal control is a crucial management tool that helps businesses independently and objectively assess their internal control systems, thereby improving operational efficiency. In the context of a volatile economy, establishing a robust monitoring mechanism is not only a self-requirement for businesses but also a mandatory legal responsibility for many types of organizations under current regulations.
In practice, errors in financial reporting or violations of tax regulations often stem from loopholes in the management system. Utilizing internal audit services from reputable firms helps management identify potential risks early, ensuring transparency and increasing confidence with investors and regulatory agencies. Let's explore the detailed roadmap and core values of this solution in the content below.
Legal framework governing internal audit services in Vietnam
Before implementation, businesses need to thoroughly understand the core legal basis. Currently, this activity is regulated by a strict system of legal documents, requiring internal audit service providers and businesses to strictly comply.
Decree 05/2019/ND-CP on internal auditing
This is the most important document establishing the framework for auditing activities in enterprises. According to this Decree, internal auditing is an independent and objective evaluation and advisory activity aimed at increasing value and improving the unit's operations.
Circular 66/2020/TT-BTC provides guidance on implementation.
This circular specifies regulations on model procedures, professional standards, and conditions for conducting audits. Internal audit professionals must base their annual audit plans on these guidelines, tailored to the specific characteristics of each business sector.
Types of businesses required to conduct internal audits
Below is a table listing the entities required by law to establish an internal audit department or outsource internal audit services:
| Business type | Legal basis | Mandatory deadline |
| Listed company | Decree 05/2019/ND-CP | Effective from April 1st, 2021 |
| State-owned enterprises (Parent-Subsidiary) | Decree 05/2019/ND-CP | Effective from April 1st, 2021 |
| Credit institutions | Law on Credit Institutions | According to the State Bank of Vietnam's own regulations. |
| Insurance companies | Insurance business law | According to regulations of the Ministry of Finance |
The internal audit services market in Ho Chi Minh City
Ho Chi Minh City (HCMC) is the most dynamic economic center in the country, home to thousands of large businesses, multinational corporations, and listed companies. Therefore, the demand for internal audit services here is always high and requires exceptional professionalism.
Internal audit firms in Ho Chi Minh City are currently divided into three main groups:
- The Big4 (PwC, Deloitte, EY, KPMG): Focus on multinational corporations and extremely large conglomerates with very high fees.
- Reputable local auditing firms (such as MAN – Master Accountant Network, AASC, Expertis): Offer in-depth, flexible services, local expertise, and more reasonable fees.
- Small consulting firms: These typically only support small businesses with limited scope.
In particular, MAN – Master Accountant Network has established itself as a leading strategic partner for medium and large-sized businesses in Ho Chi Minh City thanks to its combination of international standards and Vietnamese business practices.
MAN's position relative to the Big4 in internal audit services.
When choosing internal audit services, many businesses often consider options between MANs and the Big4 firms. Below is a comparison of their positions to provide businesses with an objective view:
| Comparison criteria | The Big 4 group (PwC, Deloitte, EY, KPMG) | MAN – Master Accountant Network |
| Trademark | Global, suitable for international listing. | Highly reputable in Vietnam, especially in the South. |
| Service fee | Very high (usually calculated in USD/hour). | Reasonable and cost-effective for domestic businesses. |
| Flexibility | The process is rigid and difficult to change to meet urgent demands. | Highly flexible and responsive to changing customer needs. |
| Personnel involved | Usually, it's an assistant with little experience who performs the work on set. | The work is carried out directly by experts and practicing auditors. |
| Understanding the practical aspects | Approaching the issue according to global theoretical standards. | Possesses a deep understanding of Vietnam's legal system, tax system, and business culture. |
Utilizing internal audit services at MAN allows businesses to receive the same level of expertise as the Big4 firms, but with a more accessible approach and significantly lower costs.
Why choose internal audit services from MAN – Master Accountant Network?
Choosing the right internal audit service partner is crucial to ensuring a smooth-running system. Here are the reasons why MAN is the preferred choice:
A team of versatile experts (Expertise)
At MAN, we have more than just auditors. Our team includes tax consultants, corporate lawyers, and risk management experts. This allows our internal audit reports to provide a multifaceted perspective, not only identifying errors but also advising on tax optimization and legal protection.
Modern approach
We apply a risk-based audit approach in accordance with global IIA standards. MAN's internal audit services focus on the actual risk areas of the business instead of conducting extensive, time-consuming audits.
Commitment to partnership and security.
MAN does not view auditing as a short-term contract. We work alongside businesses to improve their systems after the audit. All client data when using our internal audit services is kept strictly confidential with a standard-compliant storage system.
The process for using internal audit services at MAN.
The processes at MAN are standardized to ensure the highest level of transparency and efficiency for our clients:
- Onboarding and Preliminary Survey: MAN meets with management to understand expectations and the current state of the business.
- Planning and Quotation: Based on the level of complexity, MAN provides a detailed audit plan and quotation for internal audit services.
- On-site audit implementation: MAN experts directly review documents, interview personnel, and inspect systems.
- Draft Report and Dialogue: Discuss findings with each department to ensure objectivity before finalizing the data.
- Release the official report: Submit the complete report to the Board of Directors/Management Board with specific recommendations.
- Follow-up: MAN assists in monitoring the implementation of recommendations to ensure that errors do not recur.
Price list for internal audit services at MAN – Master Accountant Network
MAN's internal audit service fees are based on the value delivered and the actual workload. Below is a sample fee schedule (Note: Actual fees will depend on a detailed survey):
| Service package | Appropriate business size | Estimated fee (VNĐ/Year) |
| Basic Compliance Package | Medium-sized enterprises need to comply with Decree 05. | From 50,000,000 to 100,000,000 |
| Comprehensive Control Package | The company has many branches and complex processes. | From 120,000,000 to 300,000,000 |
| Full Outsourcing Package | A listed company or conglomerate needs absolute independence. | Agreement based on scope (from 300,000,000) |
| Internal Audit Setup Consulting Package | The company wants to build its own internal department. | According to the project (4-8 weeks) |
The above fee includes the cost of expert personnel and audit tools, but excludes VAT and travel expenses (if any).
Detailed content of the in-depth internal audit service.
A standard internal audit process goes beyond simply examining accounting documents. It encompasses all aspects, from management and finance to the actual operations of each department.
Evaluating the internal control system (ICS)
Auditors will review approval processes, authorization, and monitoring mechanisms. If the internal control system is weak, the risk of asset loss and fraud will be significant. Internal audit services will help identify these "gaps" and propose immediate corrective solutions.
Compliance Audit
This involves reviewing the implementation of legal regulations regarding taxes, labor, and internal policies. In a constantly changing legal market, internal audit services act as a "shield" protecting businesses from administrative penalties or the risk of suspension of operations.
Operational audit and risk management
The goal is to assess the efficiency and economy of operations. For example, is the purchasing process causing waste? Are production standards appropriate? Internal audit services will provide in-depth data analysis to enable management to restructure the organization more effectively.
List of typical audit procedures:
- Control the procurement and payment process.
- Control the sales and cash collection cycle.
- Auditing of inventory and fixed asset management.
- Evaluating information technology systems and data security.
The risks of not implementing internal audit services in a timely manner.
The absence of internal audit services is like a ship sailing in the fog without radar. The following risks can completely destroy your business achievements.
Risk of insider fraud
Data from the Association of Fraud Investigators (ACFE) shows that, on average, a business loses approximately 51 TP3T of revenue annually due to fraud. Without regular internal audits, misappropriation of assets can go undetected for years.
Risk of inaccurate financial reporting.
When financial indicators do not accurately reflect reality, management will make erroneous investment decisions. Internal audit services help verify the reliability of accounting data, thereby protecting shareholders' capital.
Systemic and technological risks
In the digital age, a vulnerability in software access control can lead to customer information leaks or unauthorized data alterations. In-depth internal audits of IT systems can help prevent both internal and external attack risks.
Conclude
Internal audit services are not simply about checking for errors; they are a strategic solution that helps businesses improve their governance and achieve sustainable development. Compliance with Decree 05/2019/ND-CP and Circular 66/2020/TT-BTC is the first step, but the real value lies in the ability to optimize resources and prevent risks early on.
If your business is looking for a professional solution in Ho Chi Minh City to strengthen its control system, connect with MAN – Master Accountant Network today. We are proud to offer... auditing services With high-quality internal expertise, directly competing with the Big4 firms but offering greater flexibility and a deeper understanding of Vietnamese businesses, MAN is committed to partnering with businesses in building a transparent, compliant, and efficient financial platform. Contact us today to receive the most in-depth advice from our leading experts.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
FAQ – Frequently Asked Questions about Internal Audit Services
Do small businesses in Ho Chi Minh City need to use internal audit services?
Although the law only mandates internal auditing for certain entities, every business should voluntarily implement it. For smaller businesses, you can choose to audit only the riskiest areas to save costs while still ensuring safety.
What is the difference between independent auditing and internal audit services?
Independent auditing focuses on the integrity of financial statements for external audiences (shareholders, banks). Internal auditing, on the other hand, focuses on control systems, risk management, and process improvement for internal governance purposes.
Is the cost of hiring internal audit services at MAN fixed?
Fees are not fixed. The fee will be personalized based on the complexity of the business process. MAN is committed to providing the highest quality internal audit service reports within the client's optimal budget.
