Citation:

Ha Thi Phuong Thanh. "Role of External Audit for Cooperative Management in Vietnam" International Research Journal of Economics and Management Studies, Vol. 3, No. 1, pp. 355-361, 2024.

Abstract:

The goal of cooperative auditing is to ensure compliance with the law, as well as the cooperative's internal regulations, other public financial results, increased efficiency of activities, and, most of all, ensuring the benefits of members. A special characteristic of cooperatives is a large number of members, as a large membership cannot directly participate in the management of a cooperative, but it is realised through delegates. In such cases, in order to preserve the democratic nature of the cooperative, there is a need for the decision-making system, which is controlled by a cooperative audit, to be transparent. Besides financial audits, cooperative audits are expected to verify compliance with cooperative values and principles, as well as with relevant legislation. That is why the cooperative audit is considered an efficient control mechanism that enables cooperative members to exercise their voting rights. A number of studies have been carried out so far to study the impact of both external and internal factors on the performance of cooperatives in Vietnam. However, the research has not yet focused on the role of audits in these economic entities. From all of the above facts, this research will be carried out to answer three questions: What is the current status of cooperative auditing activities in Vietnam? Does cooperative auditing bring real benefits? And what are the benefits of cooperative auditing for management as well as for members? Clarifying these contents will be the basis for affirming the role of external audits in cooperative governance in Vietnam.

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Keywords:

Audit, Cooperative, Vietnam.