 VSA1000 issued on 2015 stipulates about

audit of statements of investment projects

by auditing firms:
 The complexity of audit of investment projects
 The increase in investment projects for
development purposes
 Statements of investment project are
statements prepared by investors following
regulations about investment finalization.
Statements provide financial and other
information about conducting the projects
 Auditee: the investor of investment projects
being audited
 Files for finalisation of investment projects
include all documents of investing + finalising
the investment projects prepared by the
investor
 Objectives
of auditing statements of
investment projects are to:
 Assure reasonably about compliance of
investment process and true and fair
presentation of statements of investment
projects 
 Prepare + issue audit reports and communicate
audit findings
 Auditmembers have to master the objectives +
requirements of the audit of investment
projects, conduct the right process of the audit
+ give opinion on the compliance of investment
process + on the true + fair presentation of
investment statements
 Auditors should comply with professional standards +
code of ethics related to investment projects
 Auditors should be assigned with suitable jobs,
should be guided + monitored in each stage
 In conducting the audit plan, if competence is not
adequate for some work, auditors have to inform
audit leader to consult experts.
 Planningthe audit
 Implementing the audit plan
 Completing the audit
 Follow-up (if audits conducted by the
Supreme Audit Institutions)
 Auditors collect information about audited
investment projects + investors
 Auditors assess risks (inherent risks + control
risks – VSA 315) + materiality (VSA 320)
 Specify appropriate audit procedures
 Design audit plans (audit contents, time,
staff, location, cooperation from auditee)
 Implementing the audit plan:
 Auditing the legitimacy of investment project
documents
 Auditing investment funds
 Auditing costs of investment projects
 Auditing wastages not counted in the value of
assets from investment projects
 Auditing the value of assets from investment
projects
 Auditingthe legitimacy of investment project
documents: auditors have to base on
regulations that are:
 Effective in the investment time
 Suitable to investment types (eg. investment in
civil construction, in electricity, in
telecommunication)
 Suitable to funds (from state, from ODA …)
 Auditing investment funds:
 Used funds are verified for each source, each
year
 Used funds are compared with confirmation
values by donors, creditors,
 For loans, auditors verified the borrowed +
repayment amounts. If loans are in foreign
currency, auditors revalue the remaining value of
loans at the date of finalisation.
 Auditingcosts of investment projects:
auditors check
 competence of investors
 if investment costs are within the approved
investment, comply with standards of State
 cost of investment projects in compliance with
contracts
 Audit ing wastages:
 If wastages due to natural disasters, + other
reasons that are not insured: auditors verify the
reasons, value of damages,
 If wastages are from disposed works approved by
authority: auditors check the legitimacy of
approval + the value of disposed works
 Auditingthe value of assets from investment
projects:
 Auditors verify the summary of actual costs for
each asset; and
 Auditors verify the allocation of overheads for
each asset: direct costs are assigned directly to
the asset, indirect costs are assigned based on
direct costs or based on regulations of State
 Auditing liabilities, remaining materials
 Analyse the audit results:
 (i) comparing the investment costs finalised and
the value approved; and
 (ii) comparing the finalising value of each
component with the approved value
 Prepare + issue the audit report. In the audit
report, auditors have to list “the finalised value” +
“the audited value”. If there is a difference, there
should be an appendix for the differences +
reasons. The significant weakness of internal
controls should be reported to the investor. The
Management Letter can be issued if:
 (i) the limited scope of audit results in
qualified/disclaimer opinion, or
 (ii) the auditee refused to adjust following suggestions of
auditors, or
 (iii) non-compliance acts that may result in material
misstatements in the statement of investment project
 March 13, 2017, General Auditor of SAI issued
Decision 02/2017/QD-KTNN on Process of
Audit of Investment Projects:
 The Process includes 4 stages:
 Planning the audit
 Implementing the audit
 Completing the audit
 Follow up
 To verify reliability of accounting information and
annual and final Statements of investment projects
 To assess the compliance of legal regulations on
construction, finance + accounting
 To identify problems in policies, + recommend
amendments
 To assess effectiveness, efficiency + economy of
investment projects
 To provide reliable information to National Assembly
and state bodies for monitoring investment projects
 To detect corruptions, wastes and responsible
persons/organisations + recommend remedies +
amendments to policies
 Auditing sources of funds
 Auditing costs of investment projects
 Auditing the compliance
 Auditing the effectiveness, economy and
efficiency of managing and conducting the
investment project
 Stage 1: Planning the audit:
 Collecting information about the audited project
(objectives, types, sources of funds,
controls/inspection…), related legal regulations
 Assessing internal controls and collected
information
 Assessing audit risk
 Identifying materiality
 Designing the audit program: audit objectives,
audit contents, assessment standards, audit
objects, audit scope, location, audit methods +
procedures)
 Stage2: Implementing the audit plan: auditors
conducts audit procedures in the plan to collect
audit evidences
 Auditing the compliance with regulations about
investment
 Auditing the compliance with financial + accounting
regulations
 Auditing the final statement of investment projects
 Auditing investment costs not counted in the value
of created assets
 Auditing the value of created assets
 Auditing liabilities, remaining materials
 Auditing effectiveness, efficiency + economy of the
investment projects
 Stage 3: completing the audit:
 Prepare the draft of audit report
 Discuss with the auditee
 Issue the audit report
 Stage 4: Follow up the audit