ENVIRONMENTAL AUDITING

I. National Environmental policy on Biodiversity and the actions adopted:

1. Law on Environmental protection adopted by National Assembly on December 27, 1993.

2. Decree No 175-CP detailed implementation of the Law on Environmental protection adopted by the Gorvernment on October 18, 1994.

II. Introduction on the case of envirnmental auditing on Biodiversity carried out by my SAI.

a. Name of audit projects: Audit project of growing 5 million ha of forest in Vietnam.

b. Audit scope:

- Financial statements, reports, documents, … provided by auditees.

- Audit on the expenditures of the National budget.

Space scope: 33 provinces and 3 ministries.

c. Type of audit: Financial audit and compliance audit.

d. Objectives of audit:

- To express an opinion on whether the financial statements are prepared in all material respects, in accordance with an identified financial reporting framework.

- To comment and evaluate the implementation of the project.

- To review transactions to see if the auditees complied with all laws and regulations that govern its operations. This involves checking the spending authority contained in the annual budget and relevant legislation. To regard to environmental issues may relate to providing assurance that governmental activities are conducted in accordance with relevant environmental laws, standards and policies both at national and (where relevant) international levels.

e. Audit standards

- Vietnamese audit standards

- Audit Procedure on investment and projects.

f. Auditees:

- 3 ministries: Finance Ministry, Ministry of Defence, Ministry of Agriculture and rural development.

- 33 provinces

g. Audit methodologies:

- Attestation of financial accountability of accountable entities, involving examination and evaluation of financial reports and expression of opinions on financial statements.

- Attestation of financial accountability of the Government administration.

- Audit of financial systems and transactions including an evaluation of compliance with applicable statutes and regulations.

- Audit of internal control and internal audit funtions.

- The auditor review transactions to see if the auditees complied to all laws and regulations that govern its operations.

h. Audit findings

- The implementation of project: the area of grown forest is less than planed area, especially the the area of economic forest is 17% of planed area.

- Some province project management units  have not complied with laws and regulations in conducting, managing the projects so that the national budget has been lost.

- The Government has not enough capital for the project so that the project has been delayed.

i. Audit recommendation and opinions:

- The Ministry of Defence, the Ministry of Agriculture and Rural development, the provincial people committees should guide the project management units to correct their shortcomings.

- All project management units have to use the capital in accordence to the project’s targets.