The internal audit process in 2026 will no longer be limited to compliance checks but will become a strategic assistant, supporting businesses in adapting to the green economy and AI. Decree 05/2019/ND-CP In line with IIA 2025–2026 standards, establishing robust control processes is fundamental to maintaining investor and regulatory confidence. In practice, companies applying continuous auditing technology can detect systemic risks up to 85% early, helping to prevent financial losses before they occur.
Internal audit practices in 2026 require businesses to conduct in-depth assessments of non-financial risks such as ESG and cybersecurity. While Article 10 of Decree 05 remains the legal framework, the implementation method has shifted strongly towards real-time risk-based auditing. Fully implementing the five steps from planning to monitoring not only helps protect assets but also optimizes resources and enhances adaptability in a volatile business environment.
What is the internal audit process and why is it necessary to follow it?
By 2026, the concept of internal audit processes will have expanded significantly. It will be an independent advisory and assurance activity designed to add value by examining the effectiveness of risk management. Its role will be similar to an “Early Warning System” for businesses.
Adhering to this process helps businesses:
- Ensuring transparency of financial information under the strict scrutiny of the General Department of Taxation and the Securities Commission.
- Meeting environmental, social, and governance (ESG) standards is becoming increasingly mandatory.
- Early detection of data security vulnerabilities and risks from the use of artificial intelligence (AI) in accounting.
- Strengthening credibility to raise capital in international markets.
Legal framework governing internal audit procedures in 2026
Auditors need to stay updated on the latest legal regulations to ensure the legality of the audit:
| Legal documents | Key focus areas for 2026 | Update notes |
| Decree 05/2019/ND-CP | Mandatory regulations on internal auditing | Core legal framework |
| Circular 8/2021/TT-BTC | Vietnamese Internal Auditing Standards | Equivalent to International Standard IIA |
| Decision on ESG 2025 | Roadmap for disclosing sustainable development information. | Impact on audit scope |
| Accounting Law (Amended) | New regulations on electronic documents and digital signatures. | Basis for compliance check |
Step 1: Internal Audit Planning
In the 2026 internal audit process, the planning phase is the "digital risk mapping" stage.
Define the objectives and scope of the audit.
The audit objectives for 2026 are not limited to financial figures but also include:
- Checking compliance with personal data security regulations (according to Decree 13/2023/ND-CP).
- Evaluate the effectiveness of AI tools currently being applied in businesses.
- The scope can be expanded to include partners in the supply chain to ensure sustainability.
Risk analysis based on big data.
Auditors use analytical algorithms to identify risk "hot spots." For example, an unusual increase in related-party transactions will be automatically flagged by the system so that auditors can focus their investigation during the internal audit process.
Multidisciplinary personnel allocation
A modern audit team requires the participation of:
- Accounting and tax expert.
- IT Auditor.
- Environmental Impact Assessment Specialist (ESG Specialist).
Step 2: Conduct the audit (Fieldwork)
This is when the internal audit process shifts from examining paper records to examining systems and digital data.
Gathering evidence using technology
In the context of rapid digitalization, audit evidence gathering is clearly shifting towards technology platforms. Instead of relying on paper documents and manual methods, internal audits in 2026 will leverage remote interviews, direct integration with ERP systems, and automated testing tools. This approach not only enhances the reliability of evidence but also expands the scope of audits, enabling faster and more comprehensive risk detection.
- Remote interview: Use online meeting platforms that offer recording and facial expression analysis to assess reliability.
- Extract data directly: Connect to ERP systems (SAP, Oracle, Bravo) to retrieve data instead of waiting for the supplier to provide printed copies.
- Automated testing: Use test scripts (Bots) to check 100% transactions instead of just selecting random samples as before.
Focus on controlling technological risks.
The technician will check:
- Are system access rights properly tiered according to function?
- Do automated cost calculation algorithms have errors?
- Does the data backup process guarantee recovery in the event of a failure?
Step 3: Prepare the audit report (Audit Reporting)
The 2026 internal audit process report requires a high degree of visual clarity and predictability.
Aggregate and classify risks using the dashboard.
Instead of lengthy documents spanning dozens of pages, the report is summarized through dashboards, allowing the Board of Directors to quickly identify high-risk areas (Red Zones).
Proposing technological solutions
The recommendation is not just "document correction is needed," but "the automatic reconciliation feature in the software needs upgrading" to prevent recurring errors. This will help the internal audit process truly deliver operational efficiency.
Modern report structure
- Executive Summary: A one-page summary for the CEO/Board of Directors.
- Risk Map: The unit's risk map.
- Action Plan: A detailed breakdown of responsibilities and deadlines for corrective action.
Step 4: Follow-up after the audit
In 2026, monitoring will be automated through the Audit Management System. Audited entities will update the corrective action progress on the system. The internal audit process will automatically send reminder notifications if recommendations are overdue.
Step 5: Documentation
Audit records are stored in a highly secure cloud computing environment. This storage complies with regulations on digital document storage, allowing for quick retrieval upon request from authorities or for cross-referencing historical data in subsequent internal audit processes.
Leading internal audit trends for 2026
To stay ahead, businesses need to pay attention to the following three trends:
| Trend | Main features | Benefits |
| AI-Powered Audit | Using AI for automated fraud detection. | Increase accuracy to 99% |
| ESG Auditing | Auditing sustainable development indicators | Attracting green investors |
| Agile Auditing | Flexible auditing in short phases. | Respond quickly to market fluctuations. |
Common mistakes when implementing internal audit procedures.
Despite technological advancements, management errors still occur frequently:
- Underestimating non-financial risks: Focusing solely on money while overlooking the risks to reputation and data.
- The karaoke host lacks critical thinking skills. Over-reliance on machine results without professional evaluation.
- Resistance from the parts: The failure to establish a control culture makes it difficult for internal audits to gather information.
Conclude
The 2026 internal audit process demands a new mindset: Proactive, Technological, and Sustainable. Adhering to the correct procedures not only ensures businesses are "safe" from audits but also creates a significant competitive advantage. For every auditor and manager, mastering this process is a commitment to the long-term development of the organization.
If your business needs a partner to upgrade its control system to the 2026 standard, MAN – Master Accountant Network Ready to partner with you. We provide financial statement auditing services, develop technology-integrated internal audit processes, and offer risk management consulting. With our understanding of the Vietnamese market and international standards, MAN helps transform internal auditing into a driver of business value creation. Contact us today to build a robust control system for the future.
Other services
- Financial statement audit services
- Internal audit services
- Internal Control System Assessment Service
- Auditing services on request
- Professional tax audit services
- Construction auditing services
- Completed project settlement audit service
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.
Frequently Asked Questions about the Internal Audit Process 2026
How much does it cost to establish an internal audit process?
The initial costs may be significant due to the investment in technology, but the benefits gained from preventing losses and optimizing processes will help businesses recoup their investment quickly within 1-2 years.
Do small businesses need to implement this process?
Although not legally mandated, SMEs should still implement a simplified internal audit process to effectively manage cash flow and inventory, creating a solid foundation for expansion.
How can technicians keep up-to-date with their knowledge of AI and ESG?
Continuous training plans are needed, and collaboration with professional accounting networks is possible to access the latest methodologies.
