If group internal audit and the Vietnamese independent audit cannot replace each other (see FDI-LC-2034), the next practical question is: how do they avoid trampling over each other — testing the same item twice and making the company answer two nearly identical question sets? Vietnamese Auditing Standard No. 610 (VSA 610 — using the work of internal auditors) is precisely the framework for that coordination.
VSA 610: when the independent auditor may use internal audit’s work
VSA 610 allows the independent auditor to use the work of the internal audit function in two forms: using the results of work internal audit has already performed (for example controls testing at branches, thematic inventory counts) and — within tighter limits — using direct assistance from internal auditors under the independent auditor’s direction, supervision and review. Before using it, the independent auditor must evaluate three attributes of the internal audit function: objectivity (position in the organisation and reporting line — internal audit reporting to the board/audit committee is more objective than reporting to the finance director); competence (qualifications, certifications and experience of the staff); and a systematic and disciplined approach (audit programmes, working papers and quality control). One hard principle never changes: the independent auditor bears sole and full responsibility for the audit opinion — work involving significant judgement (material risk assessment, key estimates, unusual transactions) may not be delegated to internal audit, and the more the auditor uses internal audit’s work, the more of their own procedures they must perform. For the company this means: the better and better-documented the group’s internal audit function is, the stronger the basis for the Vietnamese auditor to reduce duplicate testing — and the more ground there is to negotiate the audit fee (see FDI-LC-2027).
Practical coordination: timing, documents, confidentiality — and common mistakes
Four coordination moves deliver real value. One, synchronise timing: the group internal audit visit should sit before the independent audit season (ideally the third or fourth quarter), so its findings are remediated before the Vietnamese auditors arrive — an open finding at the statutory audit is a problem; a remediated finding with evidence is a controls plus-point. Two, one shared document repository: a single PBC list (see FDI-LC-2023) serving both teams; the company maintains one document tree instead of two drifting copies. Three, one Q&A channel: a single internal coordinator for both teams, avoiding two teams asking the same question and receiving two different answers from two departments. Four, confidentiality and access: internal audit working papers belong to the group; opening them to the independent auditor should be recorded in a coordination minute — stating what may be viewed, the VSA 610 purpose of use, and the auditor’s statutory duty of confidentiality under the Law on Independent Audit; conversely, the company cannot demand the independent auditor’s working papers to hand to the internal team. The most common coordination failure: group internal audit arriving after the independent audit report is issued and demanding adjustments to audited figures — every such adjustment must then travel the subsequent-events route (VSA 560) and easily becomes an unnecessary crisis. The second failure: Vietnamese management promising the group that the statutory audit “will definitely be cheaper because it uses internal audit’s results” — the use decision belongs to the independent auditor on their own VSA 610 evaluation; no one can promise it on their behalf.
Frequently asked questions
How should a company coordinate group internal audit with the independent audit?
Schedule internal audit before the statutory audit season (third/fourth quarter) so findings can be remediated in time; use one shared PBC repository; run one internal coordinator for both teams; and minute the coordination on working-paper access, purpose of use and confidentiality.
Can the independent auditor use internal audit’s results?
Yes, under VSA 610 — after evaluating the internal audit function’s objectivity, competence and systematic approach. The independent auditor remains solely responsible for the opinion and may not delegate significant-judgement work to internal audit.
Should group internal audit come before or after the independent audit?
Before. Internal audit findings remediated before the statutory audit become evidence of good control; arriving after the report date forces any adjustment through the subsequent-events mechanism (VSA 560) — far more complex and risky.
Who decides how much internal audit work is used?
The independent auditor, on their own VSA 610 evaluation of the group’s internal audit function. The company cannot commit on their behalf, and heavier use does not dilute the auditor’s responsibility for their opinion.
This article has been quality-reviewed by the FLAW AI Legal Council
