Local budget auditing under the two-tier local government model: challenges and solutions

Abstract

The implementation of a two-tier local government model is currently being deployed in Vietnam. This model aims to streamline the administrative apparatus, enhance decentralization and the delegation of power and improve the efficiency of local governance. However, structural changes in local government organization will inevitably lead to significant shifts in local budget management and impose new requirements on the local budget auditing of the State Audit Office. This article analyzes the theoretical foundations of local budget auditing within the context of a two-tier local government structure. Furthermore, it evaluates the challenges facing budget auditing activities during this organizational transition, thereby proposing solutions to refine auditing methodologies, audit implementation and the legal framework to enhance the effectiveness of local budget audits in the new context.