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1 INTRODUCTION 1.The urgency of thesis topic Accounting and auditing play an especially important role in budgeting finance Although accounting and auditing have contributed significantly to the management of budgeting finance, the tasks of budgeting finance in Vietnam in general and the districts in particular have encountered many difficulties Those are: * The estimation and forecast of revenue (especially taxes) is not close to the real situation Budgeting and forecasting of state budget revenues is not a simple task In order to effectively implement this task, it is necessary to synthesize many sources of information However, the estimation work still does not comply with the principle based on the performance of the previous year and the forecasts of revenues for the next year, which is still mandatorily allocated from the higher level down the lower levels * That the budget has not been implemented according to the estimated budget is already allocated at the beginning of the year This makes the state of spending over the budget frequently occur The spending in some units greatly exceeds estimated budget, which affects the financial discipline, reflecting limitations in forecasting and budgeting * Situations in recent years have shown that many countries, including Vietnam, are facing certain fiscal risks, especially from medium and long term perspective That is the state of over-spending and the continuous increase of public debt The experience of many countries around the world has shown the delay in implementing fiscal consolidation, restructuring the state budget can cause many negative consequences for the economy * The efficiency of allocation and use of state budget in investment is not high, and the investment situation is spread out, leading to many problems in this expense Corruption, wastage of investment capital in our country has become such a chalenging problem that many levels, branches from central to local need special attention The reform and renovation of public finance, especially in the public service sector, has made a lot of progress, especially after the Decree 16/2015 / ND-CP, but there is no breakthrough In the past years, with the deep transformation of the national socialist-oriented financial system and international integration, the Vietnamese accounting and auditing system has ceaselessly improved and developed To manage, administer, inspect and supervise the activities of the state budget in general and district level in particular and to meet the requirements from 2017 to apply the State Budget Law 2015 with the spirit of " State budget management according to performance results "and implementation of the scheme on renovation of the management mechanism, financial mechanism and reorganization of the system of public-sector units (presented in the 6th convention, XIIth Central Committee, opened on October 4, 1977); accounting and auditing become one of the most effective tools to solve the above problems With the above mentioned issues and reasons, I choose the thesis“Using accounting and auditing tools in the financial management of district budgets in Hanoi”as my research topic for my doctoral dissertation Overview on related researches 2.1 Researches in Vietnam The author has mentioned doctoral theses, ministerial level scientific researches and some other researches related to the use of accounting and auditing in state budget management in Vietnam under many perspectives 2.2 Researches outside Vietnam The dissertation deals with relevant studies by major scientists in the world, such as Lüder (1992); Ouda (2004, 2008); Chan J.L (2005); Phetphrairin Upping and Judy Olive (2011); Harun Harun and Haryono Kamase (2012); Cristina Silvia Nistora, etc 2.3 Overview on related published researches Based on research projects related to the use of accounting and auditing in state budget management in Vietnam and abroad that the author have studied, the author draws on issues that scientists have solved and the issues that need to be further researched At the same time, the author confirm clearly that the chosen thesis not overlap with the research has done before about the title of the topic, objectives, tasks, objects and scope of research Purpose and tasks of the research Purpose:To propose orientations and measures to enhance the use of accounting and auditing tools in the financial management of district budgets in Hanoi Tasks:To achieve the purpose of research, the dissertation has the following research tasks: Firstly,systemizing and clarifying theories on the use of accounting and auditing in the financial management of district budget Secondly,based on the actual use of accounting and auditing tools in the financial management of district budgets in Hanoi, evaluating the achievement, limitations and causes Thirdly,introducing orientations and basic solutions to enhance the use of accounting and auditing tools to manage district budgets in Hanoi in the period up to 2025, vision to 2030 Object and scope of the study Firstly,the research subjects of the thesis are the theoretical and practical issues on the use of accounting and auditing tools in the financial management of NSQH The thesis“Using accounting and auditing tools in the financial management of district budgets in Hanoi”refer to the organization of accounting and auditing works to support authorities in making budget estimates, compling with estimates and settling the district budgets Secondly,the scope of the study: About content: * The dissertation focuses on theoretical and practical issues of using accounting and auditing in the financial management of district budget The main theme is the use of the State Budget Accounting tool - accounting for all state budget revenues and expenditures (currently carried out by the State Treasury) to manage district budgets Accounting by other agencies (tax, estimation unit, etc.) will only be covered by the thesis when necessary * Due to the time limit, the dissertation does not study the use of independent auditing and internal audit but only focuses on the use of the State Audit for financial management * The study of the use of state budget accounting and the State Audit in the dissertation is mainly to help the district authorities to manage the district budget * Based on theoretical and practical research, the dissertation focuses on proposing solutions to enhance the use of accounting tools and the State Audit in order to improve the financial management of district budgets in the upcoming time About research time: Survey on howaccounting and the State Audit are used in financially managing district budgets in Hanoi from 2011 to 2017, forecasting and proposing solutions for the period up to 2025 with a vision to 2030 About space: Analyzing and evaluating issues related to the use of accounting tools and the State Audit in the financial management of district budget in estimation, annual budget estimation and settlement by the authorities of districts in Hanoi Methodologies The thesis is based on the methodology of dialectical materialism and historical materialism of MarxismLeninism Specific methods: Methods of generalization, synthesis and analysis, compare, etc Dissertation structure Apart from the introduction, the conclusion, the dissertation is presented in three chapters, specific: Chapter 1: Theories on the use of accounting and auditing tools in financial management of district budgets Chapter 2: The actual use of accounting and auditing tools in financial management of district budgetsin Hanoi Chapter 3: Proposed solutions to enhance the use of accounting and auditing tools in financial management of district budgets in Hanoi Chapter THEORIES ON THE USE OF ACCOUNTING AND AUDITING TOOLS IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS 1.1 DISTRICT BUDGET 1.1.1 The formation and development of district budget According to Resolution 108 / CP dated 13/5/1978, the State budget includes central budget and local budget (no district budget and commune budget is outside the state budget system) By November 19, 1983, the Council of Ministers (now the Government) issued Resolution No 138 / HDBT, local budget comprises three levels: provincial, district and commune Later, State Budget Law 1996 (amended 1998), State Budget Law 2002 and State Budget Law 2015 also stipulate that the three levels 1.1.2 Characteristics and functions of district budget District budget has the characteristics and general role of the state budget, but limited to the functions, tasks and powers of the district authorities At the same time, the district budget is subject to the direction and management from higher levels 1.2 FINANCIAL MAMAGEMENT PROCEDURE TOWARDS DISTRICT BUDGET According to international practice, the state budget management process (including district budget) includes stages: (1) preparation and decision of state budget; (2) compliance with state budget; (3) Audit and evaluation of state budget In Vietnam, three phases of the state budget management process are called: (1) state budget estimation; (2) compliance with state budget; (3) Final settlement of state budget 1.2.1 District budget estimation The content of the district budget estimation includes parts: the budget revenue estimates and the budget expenditure estimates 1.2.2 Compliance the district budget District budgetcompliance is the process of synthesizing economic, financial and administrative measures to turn the revenue and expenditure targets in the district budget plan into reality 1.2.3 Final settlement of district budget At the end of the year, the district Committee shall make a final settlement report to the district Council for approval The contents of the final settlement report include the final settlement of revenue and settlement of expenditure 1.3 NATURE, FUNCTIONS AND ROLE OF ACCOUNTING AND AUDITING IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS 1.3.1 Nature, functions of accounting and auditing in financial management of district budgets Accounting for district budgets is a system of information and inspection on revenue and expenditure, with the system of scientific methods such as vouchers, price calculation, reciprocal account and general - balance; Its function is to provide information and check on revenue and expenditure Auditing is the process by independent and qualified auditors to collect and evaluate evidence of audited information in order to validate and report on the relevance of such information to the standards which have been established The State Audit of Vietnam assists law enforcement agencies (the Committees) in managing the budgets,assists theCouncils to supervise the district budgets 1.3.2.The roles of accounting and auditing in financial management of district budgets Accounting for district budgets plays an important role in providing information and data to State agencies at district level (the Council, the Committee) as well as the entire population on the use of public resources, the efficiency and effectiveness of using public finances to implement policies aimed at the benefit not of any individual but of the public interest The role of the State Audit in the management of the district budget: (1) To contribute to inspect the observance of current regulations on the State budget payment obligation in the local, to properly and fully pay according to the provisions of law (2) Strictly control the use of the district budgets, prevent against losses and waste, improve the efficiency of using state capital and assets (3) Provide a database to make decision and to manage the district budgets accurately and effectively (4) Throughout the audit, the State Audit can suggest solutions to improve the financial and environmental management mechanisms and policies at local agencies and units 1.3.3 The relationship between accounting and auditing in managing district budget At the end of the operation of the programs and cost estimates in a fiscal year, the accountants shall prepare, supply and issue accounting reports according to regulations In order to ensure the reliability of the data provided by the accountant (as a basis for assessing the performance of the year and budgeting for the following year), these information should be verified, confirmed and consulted This is the most basic work of the State Audit towards district budgets 1.4 OBJECTIVES AND PRINCIPLES FOR USING ACCOUNTING AND AUDITING TOOLS IN FINANCIAL MANAGEMENT OF DISTRICT BUDGET 1.4.1 Objectives and principles for using accounting tools in financial management of district budget There are basic objectives: Presentation and processing of data arising in accordance with the law, ensuring the transparency of budgets; provide information for decision making There are basic principles: Comply with the rules of accounting and accounting standards; in line with the regimes, policies and regulations of legal documents on revenue and expenditure accounting; suitable to the characteristics and geographical areas of the revenue and expenditure units; meet the requirements and professional qualifications of the managerial staff and accountants; ensure thrift and efficiency District authorities should improve the level of using accounting information to estimate, implement and settle budgets 1.4.2 Objectives and principles for using auditing tools in financial management of district budget The objectives are expressed in the use of the three types of state budget audits: (1) the Financial Accounting Audit for the purpose of auditing, evaluating, confirming the correctness, truthfulness of the financial statements or financial information of the entity (2) the Operational Auditto examine and evaluate the economy, efficiency and effectiveness in the management and use of finance and public assets (3) the Compliance Audit to check and assess the compliance with the current regulations are considered as the auditing criteria that the audited entity has to perform The principle of using auditing tools to improve the efficiency of state budget management is reflected in the following three issues: (1) Audit must establish a system of ethical and quality control (2) Ensure that the technician must be aware of the necessary precautions prior to commencement of the audit (3) fully adhere to the principles related to the audit process: audit planning; Conduct audits; Making audit reports; To examine the implementation of audit conclusions and proposals (4) The district authorities should work closely with the State Audit, create conditions for the State Audit to operate effectively and use audit results to effectively estimate, implement and settle the budgets 1.5 USING ACCOUNTING AND AUDITING TOOLS IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS 1.5.1 Using accounting in making district budget estimates Accountants provide essential qualitative and quantitative information on the future (on the basis of forecasts of socio-economic plans), use of forecasting tools, and other economic instruments to help identify the indicators of resources, levels of expenditure as reliably as possible 1.5.2 Using accounting in implement district budget The revenue and expenditure accounting is carried out at the district State Treasury and related agencies The accountant collects and provides information that has been done to serve the decision making of the district authorities and the implementation of the decisions In addition, the accountant also collected information to serve for the examination, evaluation later 1.5.3 Using accounting in settle district budget After making the estimate, it is needed to examine and evaluate the implementation of the estimate Public accountants provide information to help managers identify and evaluate performance, existing issues and the impact of management; At the same time, it is also used for further estimation 1.5.4 Using auditing in financial management of district budgets Auditing district budget is also used in all stages of estimating, implementing and finalizing the budget, basically including auditing at the following departments: Finance - Planning Division; State Treasury of districts; Tax department; State budget payers at district level; Agencies, units using district budget funds 1.5.5 Using accounting tools to analyze budget statements of districts Using the information provided by the accountant is to check and analyze: Whether State budget accounting has fully reflected the data on revenue and spending? Compliance in the collection and spending of the state budget? Effectiveness and efficiency of revenue and expenditures? Uniformity from local units to budget managerial organizations? 1.6 FACTORS EFFECTING ON USING ACCOUNTING AND AUDITING IN FINANCIAL MANAGEMENT OF DISTRICT BUDGET 1.6.1 Factors effecting on using accounting in financial management of district budget Key factors include: Accounting basis used; Financial management mechanism; Political system; Law system; Economic system 10 1.6.2.Factors effecting on using auditing in financial management of district budget Includes: independence; Viewpoint of the leader on audit quality control; The organizational structure, mechanism of assignment, decentralization of tasks of the State Audit; Staff policy includes recruiting, training and retraining, professional development, promotion and treatment of staff and technicians; Regulations on standards, procedures and methods of auditing; Regulations, procedures of audit quality control; Professional ethics and qualifications of auditors 1.7 EXPERIENCE IN USING ACCOUNTING AND AUDITING IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS IN HO CHI MINH CITY AND LESSONS MAY APPLY TO DISTRICTS IN HANOI 1.7.1.Experience in using accounting in financial management of district budgets in Ho Chi Minh city and lessons may apply to districts in Hanoi 1.7.2 Experience in using auditing in financial management of district budgets in Ho Chi Minh city and lessons may apply to districts in Hanoi 12 management system, State budget expenditure at all levels; The situation of state budget revenues and expenditures at all levels; Loans and repayment of state budget loans; Assets managed by the State Treasury and professional activities of the State Treasury (2) To control the observance of the financial management regime, the payment regime and other regimes and regulations of the State relating to state budget revenues and expenditures, borrowing and repayment of State budget loans and professional operations State Treasury within the scope of tasks and powers of the State Treasury (3) To abide by the financial reporting and management reports as prescribed; To provide sufficient, timely and accurate data, accounting information required, as required for the exploitation of information and accounting database on TABMIS according to the decentralization and regulation of data mining, exchanging and supplying information among units in the finance branch with relevant units according to regulations; To ensure the timely supply of accounting information for the State budget management, administration and settlement, debt management and operation of financial agencies and the state treasury system 2.3.3 Actual state of budget revenues and expenditures The state budget accounting and professional operations of a State Treasury in a State Treasury unit include the following components: Accounting for state budget expenditure; Accounting for the state budget expenditure commitment; State budget revenue accounting; State budget expenditure accounting; Accounting for loans, aid; Accounting for payment; Accounting for operations on ledgers; Off-balance sheet accounting; Accounting for other professional operations according to the functions and tasks of the State Treasury The State budget accounting and professional operations of a State Treasury in a financial agency (including Finance and Planning Section of a district or town) include: Importing and approving estimates approved by competent authorities into the TABMIS system; Control expenditures and update state spending vouchers by spending order; 13 Exploit the database in accordance with the regulations of competent authorities 2.3.4 Actual state of accounting bases in budget revenue and expenditure accounting Until the first of June 2013, Vietnam has only piloted management on expenditure commitemnt Failure to comply with the commitment results in a number of limitations: (1) The new accountant only reflects the amount actually paid (including the payment and in-advance amount) for the goods and service suppliers , which are not tracked, reflect the amount of debt payable to suppliers; At the same time, there are no grounds and data that can be transferred from accounting to cash on the basis of cash adjustment and proceed to adjust (2) The linkages of the management process are not high: Most of the districts have exceeded the initial estimate in large scale (3) The state of arrears in payment still occurs in some districts of Hanoi, especially in the past years in the field of capital construction After the implementation of the TABMIS system nationwide, on 01/06/2013 the commitment through the state treasury system was officially implemented That has led to huge changes Current state budget revenues and expenditures are recorded on the basis of the "cash adjustments" accounting (with advance monitoring, receivables, payables and some additional accruals expenditure) 2.3.5 The Actual state of vouchers, accounts, books and accounting reports on budget revenue and expenditures Curent State and State Treasury budget accounting documents include 92 types, including: State budget receipts with types; 27 state budget expenditure documents; types of Payment vouchers for investment capital; etc The current accounting system of the state budget and professional operations of the State Treasury consists of six types of balance (Type "Short-term Assets", type "Longterm Assets", type "Payable and Paid" type "Funds, Funds", Type "Income Tax", Type "Expenses"); and one out of balance (Type "Estimates - Accounts not included in balance") Each account is divided into groups of 14 accounts Within each accounting group, each account shall be set up from level to level For detailed accounting of economic operations arising under the State budget management and control requirements, "accountancy combination" Twelve code snippets were used The book consists of 12 books and a list In particular, account ledger and detailed book monitoring the use of budget estimates are prepared monthly or yearly; All other accounting books are created daily Financial statements in state budget accounting and professional activities of the State Treasury include types: periodical financial statement (month, year) and annual balance sheet report Management reports are made daily, month, year The General Director of the State Treasury may request management reports at other times and at other times according to specific management requirements 2.3.6 The state of control of information provided by district budget accountants Through controling information provided by revenue and expenditure accountants one can see aspects of the accounting voucher; accounts, accounting books; The data comparison between the State Treasury and concerned agencies, Internal control throughout the entire accounting process from the preparation of accounting documents to the preparation and presentation of financial statements, statements of accounts In addition, control is also reflected in the organization of the accounting apparatus in public units 2.4.THE ACTUAL USE OF THE STATE AUDIT IN THE FINANCIAL MANAGEMENT OF DISTRICT BUDGET IN HANOI FOR 2011 - 2016 AND YEAR 2017 2.4.1 Auditing for estimates and implementation of district budget Historically, the State Audit has not yet conducted an audit for estimates and implementation of district budget 2.4.2 Auditing for reports on budget settlement of districts The actual on audit procedure on district budget 15 The district budget auditing process in Hanoi is carried out by the State Audit region 1, comprising four stages: preparation of audits; conduct the audit; prepare and send audit reports; monitor and inspect the implementation of audit conclusions and proposals The actual on audit content on district budget Actual content of audit and management at: The Finance - Planning Division; State Treasuries of districts; Tax Offices The audit work at units directly managing and using district budget funds: At level I and II estimation units (if any); At units directly managing and using district budget funds The audit contents in the project management units: Management of the project management units; The management and implementation of regular revenues and expenditures of the construction investment project management boards; Report on final settlement of construction investment projects Results from district budget audit Results of district budget audits have contributed to increasing revenue, saving budget expenditure, prompting governments, organizations and agencies to overcome weaknesses and improve management process Based on the audited data for 2011-2015, the number of proposals to increase state budget revenue is about 1.8% of total realized revenue It is proposed to reduce regular expenditures by 1.4%, reduce investment spending by 2.1% 2.4.4.The assessment of the actual use of audit tools in the financial management of district budgets in Hanoi Achievement:(1) The main objective of district budget auditing is to audit the budget balance sheet, but it still refers to the lawfulness, the efficiency and effectiveness in financial management and in using public assets (2) Comprehensive audit content, including auditing the management and use of state budget revenues and expenditures, state funds and assets; to audit the management and use of capital construction investment capital; Auditing the observance of laws, policies, regimes 16 of financial and accounting management of the State, (3) The process of auditing the local budgets is comprehensive, detailed and applied in a practical way (4) The establishment of the State Audit Offices has been rational and strict This is the basis for the unified management and direction of all levels for the audit delegation to ensure the quality of audits, including district budget audits (5) Quality control audits have initially contributed positively to minimizing audit risk and assuring auditing quality, maintaining discipline in auditing (6) The coordination between the State Audit and the audit delegation for the district administration is focused on creating the basis for meeting the requirements of the district budget audit Limits: Firstly:Although district bedget audit in Hanoi is always compliant with the State Audit procedures issued by the State Audit, there are some limitations as follows: For the preparation phase of the audit: (1) Time spent on surveying is limited, only some basic information on income, expenditure, list, financial situation of enterprises, non-business units, projects; Therefore, there are limitations for identifying potential risks at auditing parties; (2) The assessment of the internal control system at the audited units has not yet been focused; The audit risk is not closely related to the specific situation of the audit subject; (3) Sampling of audited entities is mainly based on quantitative criteria of scale; (4) Some audit plans are not scientific yet For auditing stage: (1) The study and assessment of the internal controlsystem of the audited entity has not been properly considered; Documents on research and assessment of internal controlsystem are not recorded and archived; (2) Sampling and auditing on selected samples have not been carried out or carried out subjectively; (3) The audits at the general management agencies in the State Audit have not covered the management and 17 administration of one level of budget and the comprehensive evaluation of the implementation of the district budget; (4) The recording of audit evidence on the journal is incomplete and scientific For the preparation and submission of audit reports: (1) The widespread disclosure of state budget audit reports has not been fully implemented Public disclosure of the results of district budgetmainly stops at the level of disclosure of the results of the overall district budgetaudit every year Individual district budgetaudits or audit results at units using district budget, enterprises and investment projects have not yet been widely publicized so that the public can access the audited results To inspect and supervise the management and use of budgetby the audited units For the stage of examination of the implementation of audit conclusions and recommendations: (1) The planning of the implementation of the conclusions and audit proposals of some units is still slow; The monitoring of the implementation of audit conclusions and recommendations of non-regular and continuous units has not yet established an incentive mechanism for each audit subject; (2) The State has no sanctioning measures and has not yet been handed over to competent authorities for cases where the State Audit Office's decisions and recommendations are not implemented The State Audit Law contains mandatory provisions on the implementation of conclusions and recommendations of the State Audit, but no specific guidance on this issue has affected the effectiveness of the State Audit activities in general and of the State Audit in particular Secondly:On organization and management of the State Audit (1) Due to objective requirements, the structure of state auditors in the audit team is sometimes reserved by auditors and other members are quite large This will directly affect the quality of the district budgetaudit; 18 (2) There is currently a lack of qualified auditors Therefore, it is difficult to implement, even if the approval of the plan has not always been carried out Thirdly:On the quality control of the audit delegation (1) The internal audit and control of the audit delegation has the following limitations: (a) Awareness and implementation of self-control by some State employees is not sufficient; (b) The control of the Head of State for some tasks of state employees has not been paid attention and properly implemented; (c) The head of the audit delegation has not yet thoroughly checked and scrutinized the operation of the audit delegation (According to the regulations of the State Audit, the head of the audit team shall be responsible to the Chief Auditor and the General State Audit for the operation of the audit delegation The audit team, the head of the audit team to manage the audit team, etc.) (2) Regarding the examination and review by the audit management levels, the following limitations exist: (a) The inspection and revision of the Chief Auditor of the State Audit Area only focuses on examination and review Planning documents and audit reports Other auditing activities of the Auditor General are not regular and comprehensive (b) The inspection and appraisal work of the State Audit only focuses on the appraisal for the approval of the audit plan and report, but is not regularly concerned with the bases Data of audit plan and report (c) The number of inspections is small (3) Audit quality control by the Department of Audit Quality and Control is still limited: (a) The number of annual quality audits remains low (b) The form of audit quality control is primarily post-control (4) The relationship between the State Audit and local authorities has been paid attention However, the coordination of the audit is very limited Therefore, the implementation of the inspection and implementation of audit conclusions and proposals is not effective Causes of limitation 19 Firstly:The status of the new State Audit is mandated by the Constitution 2013 and takes effect from 2014, so the legal framework on organization and operation of the State Audit has not been completed; The role, organization and function of the State Audit is not clear and comprehensive at all levels, sectors, the public and the society Secondly:Although the State Audit has so far issued quite a number of auditing standards, auditing procedures and other regulations governing auditing, in line with the standards and principles of auditing of INTOSAI, Which satisfies the requirements of auditing and quality control audit However, the system of these regulations still has some limitations such as: (a) The latest system of state auditing standards promulgated on 15/6/2017 has not yet been included in the guideline on money Checking and auditing the State budget estimate in a form of pre-check; (b) The State Audit has just developed the process of auditing the state budget settlement report without the process of auditing the state budget; (c) The current local budget auditing process does not provide detailed guidance on auditing methods for each audit content, so the implementation of the auditing methods of each auditor does not have a uniform orientation, as well as checking and reviewing the work of the management level of the delegation, the audit team; (d) The effectiveness of the audit is not high, many units fail to fully and seriously implement the conclusions and recommendations of the State Audit; (e) Although the State Audit has signed the Regulation on Coordination between the State Audit and the Provincial Council and the Committee, the relationship between the State Audit Office and the Councils at all levels in the whole process of the State Auditing is still limited 20 Chapter PROPOSED SOLUTIONS TO ENHANCE THE USE OF ACCOUNTING AND AUDITING TOOLS IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS IN HANOI 3.1.ORIENTATION FOR USING ACCOUNTING AND AUDITING IN THE FINANCIAL MANAGEMENT OF DISTRICT BUDGET IN HANOI DURING THE PERIOD TO 2025 AND VISION TO 2030 3.2.PROPOSED SOLUTIONS TO ENHANCE THE USE OF ACCOUNTING AND AUDITING TOOLS IN FINANCIAL MANAGEMENT OF DISTRICT BUDGETS IN HANOI 3.2.1 Solutions for the use of accounting tools in financial management of district budgets in Hanoi 3.2.1.1 Continuing to implement the Project on the State General Accountant approved by Decision No 1188 / QD-BTC dated 30 May 2014, in order to perform the function of State General Accountant of the State Treasury on the whole scope in general, in the district of Hanoi in particular Apart from the achieved results, the implementation of the State General Accountant Project also has some problems that need to be resolved: (1) Different accounting levels, organizational size and accounting staff capacity are not uniform, so the application of new accounting system is also challenging, requiring solutions for preparation, training carefully For example, the Ministry of Finance organizes foreign delegations, seminars to invite international experts to share experiences, organize consultations for relevant agencies, etc In order to ensure the feasibility and orientation for the development of the legal framework for the State General Accountant, the solutions should focus on important, essential and gradual improvements over time to improve the quality of information State Financial Statements This is the use of practical experience of many advanced countries in the 21 world (3) Since the model of State General Accounting is a new content, it is related to all ministries, branches and state accounting units nationwide (at the Government level) for more effective coordination between the ministries and units with the Ministry of Finance and the State Treasury in the stage of implementation and implementation 3.2.1.2 Transfering accounting bases in recording and presenting budget revenue and expenditure accounting information from "adjusted cash" to "accrual” To synchronously convert the state budget accounting basis, administrative and non-business accounting and the accounting of special state financial funds in steps (detailed in the thesis) 3.2.1.3 Developing Vietnam's public system accounting standards in line with international public system accounting standards (IPSAS) Development of Vietnam's public IPM system, based on IPSAS and specific characteristics of Vietnam in seven steps (detailed in the dissertation) 3.2.1.4 Human resources development in the accounting sector should be in both quantity and quality; enhancing the capacity of the State management agency regardings accounting; at the same time, strengthening the activities of professional organizations The above solution is of the macroeconomic nature of the country, but it should be applied to suit the districts and towns of Hanoi 3.2.1.5.Promoting the research and application of industrial revolution 4.0 to improve the quality of financial management budget (including state budget accounting) to the level of developed countries in the area The 4.0 industrial revolution will fundamentally change many of the jobs, including the use of accounting and auditing in state management In the coming time, the Ministry of Finance should continue to create a legal corridor to allow units under the Ministry of Finance to apply information technology more strongly in the financial management activities of NS, meet urgent requirements At present, creating convenience for people, businesses, 22 enhancing information security in electronic transactions in Finance Under such conditions, the quality of accounting and auditing in state budget management will be raised to a new height, not inferior to developed countries in the region 3.2.2 Solutions to improve the effectiveness and efficiency of the operation of the district authorities in Hanoi as a solid basis for the use of accounting tools for budget management 3.2.3 General solutions for using auditing tools in budget management, including district budgets in Hanoi 3.2.3.1 Solutions to complete the operational organization in district budget audit Include: (1) Clearly identify auditors, auditors and other parties involved in auditing district budgets (2) Apply creatively the process of local budget auditing to the audit of district budget (3) Improve quality control organization of district budget audits (4) Strengthen the relationship between the State Audit and district authorities 3.2.3.2 Solutions to complete the organizational apparatus related to the district budgetaudit Include: (1) Improve the organization of the state audit apparatus (2) Finalizing the budget audit team of the district 3.2.3.3 Implement audit budget estimates of districts The necessity of auditing the state budget is reflected in the following key aspects: (1) The state budget is a highly technical document, the procedure is very complicated so that the state budget The quality required to audit state budget estimates (2) Basing on the auditing report, the National Assembly (the Council) has more grounds for discussing and considering the budget estimation The information provided by the State Audit is reliable because it is the opinion of an independent body made by a team of experienced professionals and professional reputation (3) The involvement of the State Audit in the process of 23 estimating the state budget is in line with international practice and the instructions of INTOSAI 3.2.3.4 Implement type of audit activities in the audit of district budget State Budget Audits, including district budgets in Hanoi, includes financial reports audit, compliance audit and operational audit However, the operational audit has not yet been applied in state budget audits; In particular, there are no operational auditprograms for district budget in Hanoi In the coming time, the State Audit should pay more attention to the operational audit Possible solutions are: (1) Defining the characteristics and methods of the Operational audit (2) Inviting foreign consultants who are knowledgeable about operational audit, and enthusiasm to pass their experience and training to Vietnamese auditors 3.2.3.5 Improving legal bases related to budget auditing activities of districts The Law on State Audit, which takes effect from 01/01/2016, has contributed positively to improving the quality and effectiveness of the State Audit However, this Law has shown some limitations: (1) Lack of specific regulations on sanctions to deal with the responsibility of violating organizations and individuals detected by the State Audit (2) Historically, state budget auditors have been identified as "agencies and organizations that manage and use public finances and public assets." Such a provision omitted "the agencies involved in the management and use of public finance and public assets of the audited entity." (3) In the provisions of the State Budget Law 2015, State Budget Law 2015, Law on Inspection 2010, … also not ensure the combination, clear assignment to agencies that comply with the authority of the agency there There are overlapping and duplication leading to difficulties for the inspecting and inspecting agencies as well as auditing and inspecting subjects (4) The State Audit is expected as an independent constitution in the responsibility of asset management public, public finance, but so far this purpose has not reached as expected 24 Therefore, it is necessary to amend and supplement the Law on State Audit 2015 The State Audit should be more active in reviewing and evaluating comprehensive and submitting to the National Assembly for consideration and amendment of the Law 3.2.3.6 Human resources development in the field of auditing should be in both quantity and quality; enhancing the capacity of the State management agency regardings audit; at the same time, strengthening the activities of professional organizations 3.2.3.7 Promoting the research and application of the industrial revolution 4.0 to improve the quality of budgetary management (including state budget auditing) to the level of developed countries in the region 3.2.4 Solutions to improve the effectiveness and efficiency of the operation of the district authorities in Hanoi as a solid basis for the use of audit tools in the budget management 3.3 Proposals 3.3.1 For the Central Entering the new era, the use of accounting and auditing in the management of district budget in Hanoi has many changes The direction, guidance, supervision and inspection of the central government is extremely important As regards Accounting: Firstly:To formulate the Government's efforts to create, act and perform well the task of "unifying the State management over accounting" in the whole country, paying special attention to Hanoi Secondly:To set up the Ministry of Finance apparatus in a streamlined, effective and efficient manner and take responsibility before the Government for performing the State management over accounting in the whole country, paying special attention to Hanoi Thirdly:The ministries and ministerial-level agencies shall, within the ambit of their respective tasks and powers, closely coordinate with the Finance Ministry in performing the State management over accounting in the branches and 25 domains assigned to them in charge of the whole countrywith special attention to Hanoi As regards auditting (of the State audit): Firstly:the government shall closely supervise the State Audit of Region I in their audit on the management and use of budget Secondly:State Audit of Region I with a high sense of responsibility and full implementation of the tasks stipulated in the Law on State Audit in 2015 for Hanoi Thirdly:The investigating bodies and the Procuracies shall have to receive and settle according to their competence cases showing signs of crimes in Hanoi 3.3.2 For the authorities of districts in Hanoi As regards Accounting: The Hanoi Committee shall, within the ambit of its tasks and powers, raise the responsibility for the State management over accounting in the city according to the provisions of the Accounting Law As regards auditting (of the State audit): Firstly:the Councils in Hanoi and the Councils of districts have closely monitored the implementation of audit conclusions and recommendations of the State Audit in the locality Secondly:the Committee of Hanoi and the Committees of districts shall implement and direct local agencies: (1) To provide sufficient and timely information and documents in service of auditing activities of the State Audit (2) To fully and promptly make conclusions and recommendations on audit of the State Audit 26 CONCLUSION Based on the research objectives and the integrated use of research methods, the thesis has new contributions: About theoretical effects To systematize and clarify the use of accounting and auditing tools in financial management About practical effects Studying and analyzing the actual situation of the use of accounting and auditing tools in financial management of district budgets in Hanoi, including the following contents: (1) Functions and tasks of the managerial apparatus Financial management of district budgets in Hanoi (2) Characteristics of environmental management in Hanoi (3) Actual use of accounting and auditing tools in district budgetestimates, implementation and settlement in Hanoi period 2011-2016 and 2017; evaluate the results, limitations and causes About proposed solutions and recommendations Suggest solutions using accounting tools, auditing in financial management of district budgetsin Hanoi Comprehensive solutions, from the completion of the legal basis, the professional operation, the organizational structure to the improvement of accounting human resources, the audit, the promotion of research and application of the industrial revolution 4.0 to improve the quality of accounting and auditing state budget, including district budgetsin Hanoi Analyze and propose some proposals to the government, municipalities and districts of Hanoi so that solutions proposed by authors can be applied in practice in Hanoi in particular and the whole country in general Despite the effort, due to time and accounting conditions, district budgetaudit is a broad issue, so the research results of the author are inevitably limited The author wishes to receive the comments of scientists and colleagues to complete the thesis The author would like to thank you ... legal corridor to allow units under the Ministry of Finance to apply information technology more strongly in the financial management activities of NS, meet urgent requirements At present, creating