Applying the risk-based and materiality assessment audit approach in performance audits by the State Audit Office

Abstract

In the context of the State Audit Office of Vietnam’s strong transition toward performance auditing, the application of a risk-based and materiality assessment audit approach is considered a core solution to enhance the quality and efficiency of public auditing. This article systematizes the theoretical and practical foundations of the risk-based and materiality approach in performance audits; analyzes the current state of its application at the SAV in recent years and proposes a set of solutions to refine this methodology. The goal is to move toward a more professional, modern and effective performance audit framework. The proposed solutions include: refining the legal framework, building a national risk database, enhancing auditor capacity, modernizing audit tools and procedures, increasing the application of information technology and integrating more deeply with international standards and best practices.