The potential role of audit in detecting corruption

Abstract

The majority of an auditor's time and effort is spent on gathering sufficient evidence to present their opinion on an audit. However, inconsistent assessment of the quality of audit evidence collected by Supreme Audit Institutions presents risks for auditors and affects the quality of the audit. This article examines the limitations in collecting audit reports by the State Audit Office of Vietnam, based on reports that analyze the implementation of audit conclusions and recommendations. The analysis shows that there are still some limitations in relation to the quality of audit evidence, which affects the overall audit quality. These limitations include the collection of unreliable evidence that leads to complaints and the failure to perform necessary audit procedures to confirm the existence and completeness of assets, which limits the prevention of fraud in financial statements. Therefore, regulations should allow for the use of external evidence and expert opinions on signs of fraud as practical solutions to enhance the quality of audit evidence.