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THE
STATE BANK OF VIETNAM
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.
37/2006/QD-NHNN
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Hanoi,
August 01, 2006
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DECISION
ON THE ISSUANCE OF THE REGULATION ON INTERNAL AUDIT OF
CREDIT INSTITUTIONS
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the
State Bank of Vietnam issued in 1997; the Law on the amendment, supplement of
several articles of the Law on the State Bank issued in 2003;
- Pursuant to the Law on Credit Institutions issued in 1997; the Law on the
amendment, supplement of several articles of the Law on Credit Institutions
issued in 2004;
- Pursuant to the Decree No.52/2003/ND-CP dated 19/5/2003 of the Government
providing for the function, assignment, authority and organizational structure
of the State Bank of Vietnam;
Upon the proposal of the Director of Banks and Non-bank Credit Institution
Department,
DECIDES:
Article 1.
To issue in conjunction with this Decision the
“Regulation on internal audit of credit institutions”.
Article 2.
This Decision shall be effective after 15 days since its
publication on the Official Gazette and replace the Decision
No.03/1998/QD-NHNN3 dated 03/01/1998 of the Governor of the State Bank on the
issuance of the “Regulation on internal inspection, audit of credit
institutions”.
Article 3.
The Director of Administrative Department, Director of
Banks and Non-bank Credit Institution Department, Heads of related units of the
State Bank of Vietnam, General Manager of the State Bank branches in provinces,
cities under the Central Government’s management and the Chairperson of the
Board of Directors, General Director (Director) of credit institutions shall be
responsible for the implementation of this Decision.
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FOR
THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR
Dang Thanh Binh
REGULATION
ON THE INTERNAL AUDIT OF CREDIT INSTITUTIONS
(Issued in conjunction with the Decision No. 37/2006/QD-NHNN dated 01 August
2006 of the Governor of the State Bank)
Chapter I
GENERAL PROVISIONS
Article 1.
Governing scope and subjects of application
This Regulation stipulates the
performance of internal audit at credit institutions which are established and operate
in accordance with the Law on Credit Institutions (including branches of
foreign banks operating in Vietnam).
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In this Regulation, following
terms shall be construed as follows:
1. “Internal audit” is an act of
independent, objective inspection, verification, assessment for the internal
inspection, control system; independent assessment of the appropriateness and
compliance with policies, procedures and process which are set up in the credit
institutions, whereby the unit performing internal audit shall provides
proposals, advices for the purpose of enhancing the operation effectiveness,
efficiency of systems, processes, provisions, making contribution to the
assurance of the prudential, efficient and lawful operation of credit
institutions.
2. “Internal audit department”
is a specialized and responsible unit which performs the internal audit of a
credit institution;
3. “Small-scaled credit
institutions” are credit institutions which have the total officers of less
than 30 people.
4. “Manager” shall be the
General Director (Director), Deputy General Director (Deputy Director), Head,
Deputy Head of units, managing, professional operation departments of credit
institutions.
Article 3.
Objectives of internal audit
Major objectives and functions
of internal audit include:
1. To independently valuate the
appropriateness and compliance with policies, procedures, processes which are
drawn up in the credit institution.
2. To inspect, verify, valuate
the sufficiency, effectiveness and efficiency of the internal inspection,
control system for the purpose of improving and completing the internal
inspection, control system. With a view to performing this objective, units
performing the internal audit are encouraged to perform consultant activity,
participate in the process of building, improving and completing the internal
inspection, control system, providing that principle of independence,
objectiveness as stipulated in this Regulation is not violated.
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1. Independence: the internal
audit department shall operate independently compared with units, managing,
professional operation departments of the credit institution; the internal
audit activity shall be independent of activities of management, professional
operation of the credit institution;
2. Objectiveness: the internal
audit department, internal auditors must assure the objectiveness,
truthfulness, fairness, non-prejudice when they perform the task of internal
audit.
3. Speciality: internal auditors
shall be those who have necessary knowledge, standard and skills of internal
audit and do not concurrently undertake other posts and specialized works of
the credit institution.
Article 5.
Requirements for assuring the independence and objectiveness
1. Internal auditors must have
fair, unprejudiced attitude and avoid any interest conflict. Each internal
auditor shall have the right and obligation to make report to the Chief of
internal auditor on all issues that may affect his independence and
objectiveness prior to and during the performance of assigned internal audit
work.
2. The Chief of internal auditor
must thoroughly understand, follow up and ensure the independence and
objectiveness of the internal auditors. In case where the independence or
objectiveness is affected or likely to be affected, the Chief of internal
auditor shall report to the Controllers Committee.
3. The credit institution must
thoroughly grasp the implementation of the internal audit activity under the
following principles, provisions in order to ensure the independence and
objectiveness, prevent the lack of fairness, prejudice and interest conflicts:
a. To restrain maximally the
participation by internal auditors in the audit of activities, departments that
those very auditors were responsible for performing activities or managing
those departments within 03 (three) years previously.
b. Internal auditor shall not be
entitled to perform the audit for a process that he takes the major
responsibility for the building up of the process thereof.
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d. To rotate internal auditors,
one internal auditor shall not be permitted to perform the audit for a specific
unit, department within many consecutive years.
dd. It is required to take
measures of inspection in order to ensure the independence and objectiveness of
the internal audit work right during the implementation of the internal audit
work at the units, departments to be audited and during the period of
preparation and submission of auditing report;
e. Auditing comments in the
report on internal audit shall be carefully analyzed basing on collected data,
information for ensuring the objectiveness;
f. Results of the duty
performance of the Chief of Internal Auditor must be regularly inspected,
verified and valuated by the Controllers Committee.
Article 6.
Performance method of the internal audit activity
1. Performance method of the
internal audit is “risk-oriented” auditing method, priority shall be given to
resources concentration for auditing units, departments, processes which are
considered as highly risky.
2. Internal auditor must define,
analyse, valuate risks and draw up a risk file for each activity of the credit
institution. The risk file includes the entire of the potential risks, possible
effects of those risks on the operation of the credit institution and
possibility of the occurrence of those risks. Basing on the valuation of the
effect, possibility of the risk occurrence; each risk shall be classified into
high, or medium or low risks. The valuation, classification of risks must be
performed at least once a year.
3. The result of risk valuation
shall be the basis so as the Chief of internal auditor can work with the
Controllers Committee, the General Director and the Board of Directors during
the process of preparing the annual internal audit plan. All the risks shall be
graded under descending order, activities which are considered as highly risky
shall be given the priority to concentrate more resources, more time on the
auditing, priority to perform the auditing first and more regular than those
with low risk exposures.
4. The internal audit plan must
be drawn up basing on the risk valuation results and must be updated, changed,
adjusted in line with the development, changes in the operation of the credit
institution and changes of accompanied risks.
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SPECIFIC PROVISIONS
Section 1.
ORGANIZATION, OPERATION OF INTERNAL AUDIT DEPARTMENT
Article 7.
Internal audit apparatus
1. The internal audit department
of the credit institution is organized in a uniform system under the vertical
industry, shall directly belong to and be subject to the direct instruction of
the Controllers Committee.
2. Basing on the scale, set
level and characteristics of the credit institution’s operation and upon the
proposal of the Controllers Committee, the Board of Directors shall make
decision on the organization of the internal audit apparatus, the regime on
salary, bonus, responsibility allowances applicable to persons engaging in the
internal audit work.
3. The credit institution shall
be entitled to outsource specialists, organizations which have full capability,
professional level to perform a part of the internal audit work for the
activities the internal audit department is not yet qualified for performing
the audit providing that the compliance with the principles, provisions in this
Regulation shall be ensured.
4. The internal audit activity
of local People’s Credit Funds, branches of foreign banks, small scaled credit
institutions may be undertaken by the internal audit department of the head
office or local office (in respect of foreign bank branches), or by external
organizations, independent auditing organizations providing that the compliance
with the principles, provisions in this Regulation must be ensured.
Article 8.
Standards for persons engaging in the internal audit work
1. Internal auditors must fully
satisfy the following standards:
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b. Having general knowledge,
understanding about the laws, business administration and banking operations;
c. Having bachelor degree in
appropriate speciality, having adequate knowledge and regularly being updated
with areas they are assigned to perform internal audit;
d. Being capable of collecting,
analyzing, assessing and synthesizing information;
dd. Having the knowledge, skills
of the internal audit
e. Other standards provided for
by the credit institution
2. Besides above mentioned
conditions and standards, the Chief of Internal auditor and the Deputy Chief of
Internal auditor must, at least, have bachelor degree in banking or economic or
financial major and have worked in banking area for at least 3 years.
Article 9.
Appointment, dismissal of titles of internal auditor
1. The head of the internal
audit apparatus of a credit institution (hereinafter referred to as the Chief
of Internal Auditor) shall be appointed, dismissed by the Board of Directors of
the credit institution upon the request of the Head of the Controllers
Committee; or by a competent person of the parent bank for foreign bank
branches.
2. The Deputy Chief of Internal
Auditor and other titles of the internal audit shall be appointed, dismissed,
upon the request of the Chief of Internal Auditor, by the Board of Directors;
or by the General Manager (Manager) of foreign bank branches.
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1. Scope of internal audit
activity includes:
a. Auditing all activities,
professional processes and units, departments of the credit institution;
b. Performing special audit and
providing advices upon the request of the Board of Directors, Controllers
Committee;
2. The internal auditors should
ensure the independence, objectiveness when performing the audit for
activities, processes, departments they provided advices before. In this case,
the leaders of the units, departments to be audited shall take full
responsibility for the activities, processes and departments the internal
auditors provided advices before. The internal auditors shall have the right
and obligation to analyze and assess fully the procedures, processes, system of
internal inspection, control which were set up by the leaders of audited units,
departments regardless of the fact that the internal auditors provided the
leaders of these units, departments with advices.
Article 11.
Operation contents of the internal audit activity
Main contents of the internal
audit activity shall be to inspect, assess the adequacy, effectiveness and
efficiency of the internal inspection, control system. Depending on the scale, level
of risks as well as specific requirements of each credit institution, the
internal auditors may check, assess the following contents:
1. The level of adequacy, the
effectiveness and efficiency of the internal inspection, control system
2. The application, the
effectiveness and efficiency of identification processes, measuring method and
method of risk management, capital valuation
3. Management information system
and financial information system including electronic information system and
electronic banking service
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5. The regime on the assurance
of the compliance with provisions of applicable laws, provisions on prudential
ratios in the credit institution’s activities, internal provisions,
professional operation processes, rules, professional virtue rules
6. Regime, provisions, processes
on management, administration, professional operation of the credit institution
7. Measures for ensuring the
assets’ security
8. Assessing the economicalness
and efficiency of the activities, the economicalness of the use of resources,
by which the appropriateness level between achieved operation results and
proposed operation objectives shall be determined.
9. Performing other contents
relating to the function, assignment of the internal auditors upon request of
the Controllers Committee, the Board of Directors.
Section 2.
ASSIGNMENT, AUTHORITY AND RESPONSIBILITY OF THE INTERNAL AUDIT DEPARTMENT
Article 12.
Assignments of the Internal Audit Department
1. To draw up the annual
internal audit plan and perform internal audit activities in accordance with
the plan, approved policies, process and procedures on internal audit, assuring
the quality and efficiency.
2. To perform independent,
objective inspection, verification, valuation for all units, departments,
activities of the credit institution (regime, policy, procedure, process or
matters in the operation) basing on the risk level (high, low or medium) and
the effect levels on the credit institution’s operation. In respect of any
matter that may cause bad effect to the credit institution’s operation, the
internal auditor should make timely report on the nature and its effect to the
credit institution’s operation and suggest practical recommendations to prevent
and overcome these matters.
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4. To valuate the correspondence
of activities in order to prevent, overcome already reported weak points;
activities for the purpose of completing the internal inspection, control
system and follow up them till these issues are satisfactorily settled
5. To draw auditing report;
inform and submit timely results of internal audit to concerned parties inside
and outside the credit institution in accordance with policies, processes,
provisions of the credit institution and applicable laws.
6. To continuously develop,
correct, supplement, complete the method of internal audit and operation scope
of the internal audit activity in order to be able to update, catch up with the
development of banking activity
7. To comply with the process of
ensuring quality of the internal audit work
8. To set up a file of ability
level and requirements necessary for the internal auditor to make basis for
recruitment, promotion, transfer of officers and fostering professional
knowledge; To work out a plan and organize the training continuously in order
to improve and ensure the professional ability of the internal auditors.
9. To maintain the regular
consultancy, discussion with the independent auditing organization, the State
Bank Inspectorate in order to ensure the efficient cooperation; to be a unit
that regulates, coordinates with external agencies for works relating to the
function, assignment of the internal auditors.
10. To provide advice to the
Managers, the Board of Directors of the credit institution and operational
departments to carry out projects on setting up, new application or amendment
of important operational processes; managing, administration regime; process of
risk identification, measuring and assessment, risk management, method of capital
valuation; the accounting, information system; to perform new operations,
products providing that the independence of the internal audit activity is not
affected.
Article 13.
Authorities of the Internal Audit Department
1. To be fully equipped with necessary
resources (human resource, financial resource and other equipment)
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3. To be fully, timely supplied
with all information, documents, files which are necessary for the internal
audit activity.
4. To be entitled to approach,
study all operational processes, assets in the performance of audit activity.
5. To be entitled to approach,
interview all officers, staff of the credit institution for issues relating to
the audited contents.
6. To be entitled to attend and
receive all meeting minutes of the Management Board relating to the internal
audit activity.
7. To be entitled to supervise, evaluate
and follow up the correction, overcoming, completion by the leaders of units,
departments in respect of issues which are acknowledged and recommended by the
internal auditors
Article 14.
Responsibilities of the internal audit department
1. To keep secret of the
information, documents in accordance with provisions of current laws,
provisions of this Regulation, of the Charter and of the Internal Regulation on
internal audit of the credit institution.
2. To take responsibility to the
Controllers Committee, the Board of Directors for the result of the internal
audit activity; for the assessments, conclusions, petitions, proposals in the
internal auditing report.
3. To follow up the performance
results of petitions after the internal audit of units, departments of the
credit institution.
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Article 15.
Policy and process on the internal audit
1. Internal audit policy shall
be an official basis, foundation and guidance for the internal audit activity
and for each internal auditor. The internal audit policy shall include an
Internal Regulation on internal audit, a collection of professional virtue
rules, internal provisions on the organization and operation of internal audit,
internal audit process and related provisions.
2. The internal regulation on
internal audit should generalize the guideline, purpose, scope of operation,
position, authority, function, assignment of the internal auditors in a credit
institution and relationship with other units, departments; of which there are
requirements of the independence, objectiveness, fundamental principles,
requirements of the professional level and quality assurance of the internal
audit activity. The internal regulation on internal audit of the credit institution
shall be established on the basis of the conformity with provisions of this
Regulation and related provisions of current laws.
3. The process on internal audit
shall stipulate processes and provide detailed guidance on the method of risk
evaluation, preparation of an annual internal audit plan, plan for each audit
session, mode of the audit performance, preparation and submission of an
auditing report, archive of internal audit files, materials. The Regulation on
internal audit may be provided for in the Internal Regulation on internal
audit.
4. Basing on the provisions in
this Regulation, credit institutions shall draw up a specific policy and
process on internal audit in line with specific operation characteristics of
each credit institution. Credit institutions shall be encouraged to apply
international rules on internal audit providing that they are not in contrary
to provisions of this Regulation.
Article 16.
Rules on professional virtue
1. The credit institution must
prepare a set of rules on professional virtue and ensure the maintenance of
those rules in order to develop culture of professional virtue within the
entire credit institution in general, and in the implementation of the internal
audit work in particular. All internal auditors shall ensure the right
compliance with the rules on professional virtue during the implementation of
the internal audit and consultancy work.
2. The internal auditors must
implement and maintain at least the following rules on professional virtue:
a. Truthful: The internal
auditors shall carry out their work truthfully, carefully and responsibly;
comply with the laws and perform all work contents publicly in accordance with
provisions of applicable laws and of profession; shall not deliberately involve
in any illegal activity, or take part in activities that may result in the loss
of prestige for the internal audit profession or for the credit institution;
shall always respect and strive to make efficient contribution to proper and
lawful objectives of the credit institution.
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c. Confidential: The internal
auditors should respect the value and the ownership of received information,
shall not be permitted to disclose the information without the valid
authorization unless they are obliged to disclose the information in accordance
with provisions of applicable laws and internal provisions of the credit
institution.
d. Responsible: The internal
auditors must always take full responsibility, strive to learn, apply gained
knowledge, skills and experiences for performing the internal audit in the most
efficient manner.
3. The Chief of the Internal Auditor
shall take measures for following up, assessment, management in order to ensure
the compliance with the rules on professional virtue by internal auditors.
Article 17.
Annual internal audit plan
1. Basing on the scale, the
growth rate, risk level of activities and current resources (human, financial
resource, ect), the Chief of Internal Auditor shall draw up an annual internal
audit plan.
2. The annual internal audit
plan of a credit institution must satisfy following requirements:
a- Risk based orientation:
operations and units, managing and professional operation departments with high
risk level must be audited at least once a year;
b- Ensuring the all-sided
nature: all operational processes, units, managing, professional operation
departments of the credit institution shall be audited; processes, units,
departments that have been evaluated as having the lowest risk exposure shall
be audited on the basis of every five (05) years at the minimum.
c- Credit institution must set
up a provisional time fund which is enough for the performance of unexpected
audit sessions upon request of the Controllers Committee, or upon availability
of information about the signal of violation, signal of high risk of audited
subjects.
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3. The internal audit plan for
the following year must be submitted to the Board of Directors, Controllers
Committee, General Director (Director) of the credit institution before 31
December annually; Before 31 December, Controllers Committee of the credit
institution must send this audit plan to the State Bank (the State Bank
Inspectorate, Banks Departments).
Article 18.
Approving policy, process and annual plan on internal audit
1. Internal audit policy,
including the Internal Regulation on internal audit shall be discussed with the
General Director (Director), Controllers Committee, then shall be approved and
signed for issuance by the Chairperson of the Board of Directors of the credit
institution.
2. After being approved, the
internal audit policy shall be sent to the State Bank (Banks Department) for
its knowledge and following up. The State Bank shall have the right to make suggestions
or require the amendment of the contents of this policy if it has not satisfied
yet the provisions of this Regulation.
3. Process on internal audit (in
the event where it is issued separately, is not included in the Internal
Regulation on internal audit), the internal audit plan shall be discussed by
and between the Controllers Committee and the General Director (Director) and
approved by the Chief of Internal Auditors after reporting to the Chairperson
of the Board of Directors.
Article 19.
Implementing the annual internal audit plan
The Chief of Internal Auditor
shall organize the implementation of the annual internal audit plan and special
unexpected audit sessions upon the request of the Controllers Committee. Scope,
cycle and method of auditing, auditing process must assure that the auditing
result truly reflects the actual situation of the audited contents.
Section 4.
REGIME ON THE REPORTING AND ARCHIVE OF INTERNAL AUDIT FILES, DOCUMENTS
Article 20.
Auditing report
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2. The auditing report must
clearly state auditing contents, scope of auditing; assessments, conclusions of
the audited contents and foundation of the opinions thereof; shortcomings,
remains, error, violation, explanations of the subjects of auditing; proposing
methods of error correction, overcoming and violation settlement; proposing
methods of rationalizing, improving the operational process; completing the
risk management mechanism, organizational structure of the credit institution
(if any).
3. Auditing report should have
the opinion of the leadership of the audited unit, department. In the event
where the audited unit does not agree with the auditing result, the internal
auditing report, the unit should state clearly its disagreement and the reason
thereof.
Article 21.
Unexpected report
The Chief of Internal Auditor
shall make unexpected report in accordance with following provisions:
1. Making immediate report to
the Controllers Committee, Board of Directors, General Director (Director) if
any serious violation is detected or where any high risk exposure that may
cause bad effect to the operation of the credit institution is realized.
2. Timely informing the Manager
of the unit of which the activity is audited if the remains stated in the
auditing report are not timely corrected and overcome after an appropriate
period of time.
3. After having informed the
Manager of the unit of which the activity is audited in accordance with
Paragraph 2 in this Article, if the remains thereof have not been corrected and
overcome, they must be timely reported in writing to the Controllers Committee,
the Board of Directors and General Director (Director) of the credit
institution.
Article 22.
Annual auditing report
1. After 30 days at the latest
since the ending of the fiscal year, the Chief of the internal auditor shall
send a general report on the performance result of the internal audit plan in
the previous year to the Controllers Committee, the Board of Directors, the
General Director (Director). The general report on the performance result of
the internal audit plan of the previous year must state clearly: the proposed
audit plan; the already performed audit activities; serious shortcomings,
violations that have been detected; methods proposed by the internal auditors
for the correction and overcoming of the shortcomings, violations; assessment
of the internal inspection, control system relating to audited activities and
proposals for the perfection of the internal inspection, control system; the
performance of methods, petition, proposals of the internal auditors.
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Article 23.
Archiving internal audit files, documents
1. Auditing reports and auditing
files, documents must be archived at the internal audit department in
accordance with provisions of applicable laws.
2. Files, documents in each
auditing session must be recorded as written documents, archived by order so
that individuals, organizations that are competent to exploit (who have
professional standard and knowledge of banking activity) can understand the
auditing work, the performance result of the auditing session
Section 5.
ASSURING THE QUALITY OF THE INTERNAL AUDIT ACTIVITY
Article 24.
Process on assuring the quality of the internal audit activity
A credit institution must have a
process on following up and evaluating the quality of the internal audit
activity. This process shall include the internal assessment and independent
assessment, specifically as follows:
1. Internal assessment means the
self-reassessment of the internal audit activities at the end of an audit
event, and the self-reassessment on annual basis of the entire internal audit
activity performed by the internal audit department for the purpose of assuring
the quality of the internal auditing activity. Result of the annual internal
assessment must be reported to the Controllers Committee and acknowledged in
the Annual Internal Auditing Report.
2. Independent assessment means
the annual assessment of the quality of the internal audit activity performed
by an independent auditing organization. Result of the independent assessment
of the internal auditing quality shall be acknowledged by the independent
auditing organization in the Annual report of the credit institution.
Section 6.
RESPONSIBILITY OF THE CREDIT INSTITUTION
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1. To check, approve the policy,
method of internal audit; to ratify process, plan on internal audit. Pursuant
to provisions of applicable laws and this Regulation to issue an internal
Regulation on internal audit of their unit, which must provide for target,
duty, position, authority, responsibility, reporting regime, relationship with
other departments of the credit institution, responsibility and authority of
the Chief of Internal auditor; basic principles, requirements of internal audit
activity and of the report on internal audit.
2. To make decision on the
apparatus organization of the internal audit department; to appoint, dismiss
the Chief of Internal Auditors upon the proposal of the Controllers Committee.
3. To equip sufficient resources
(human resource, financial resource and other facilities) and facilitate the Internal
audit department to complete assignments as provided for in this Regulation.
3. To make decision on the
implementation of the petitions of internal auditors. To speed up, follow up
professional units in the implementation of petitions of internal auditors, to
timely take treatment measures upon the receipt of reports provided for in
Article 20, Article 22 of this Regulation or upon proposal, suggestion of the
Chief of Controllers Committee, Chief of internal auditor.
4. To make decision on financial
regime, mechanism on salary, bonus, allowances for the internal audit
department and officers of this department in accordance with the competence.
Article 26.
Responsibility of the Controllers Committee
1. Controllers Committee of the
credit institution shall be responsible for the direct guidance, management,
supervision over activities of the Internal audit department;
2. To check, inspect, evaluate
to ensure the efficiency of the internal audit activity; take major
responsibility for ensuring the quality of the internal audit activity;
3. To ensure that the internal
audit activity has an appropriate position in the credit institution and there
are not any unreasonable obstacles for the internal audit activity.
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5. To approve the internal audit
process; to approve, adjust the annual internal audit plan upon the proposal of
the Chief of Internal auditor, ensure that the internal audit plan is oriented
according to the risk.
6. To ensure an efficient
coordination with independent auditors and the State Bank Inspectorate
7. To consider, propose the
Board of Directors on the appointment, dismissal of the Chief of internal auditor.
8. To carry out the direct
reporting to all agencies, all levels inside and outside the credit institution
in accordance with provisions of applicable laws and provisions of the credit
institution; To send reports to the State Bank in accordance with provisions of
this Regulation.
Article 27.
Responsibility of the Chief of Internal Auditor
1. To draw up the annual
internal audit plan to submit to the Controllers Committee for approval.
2. To organize the
implementation of the internal audit plan approved by the Controllers Committee
and unexpected audit events assigned by the Controllers Committee.
3. To draw up, amend, supplement
and perfect on a regular basis the method, policy, process on internal audit
for the submission to the Controllers Committee.
4. To ensure that officers of
the Internal audit Department are trained regularly, have sufficient standard,
professional capacity to perform the duty of internal audit.
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6. To request to gather
personnel from other departments of the credit institution to participate in
internal audit event when necessary, providing that the independence of the
internal audit activity is ensured.
7. To attend meetings of the
Management Board in accordance with internal provisions of the credit
institution and provisions of this Regulation.
8. To report the Controllers
Committee, the Board of Directors, the General Director (Director) when
weakness, shortcomings, violations of the inspection, control system and of the
Manager are detected.
9. To follow up the
implementation of petitions after auditing; to draw up and send reports n
accordance with provisions in this Regulation;
Article 28.
Responsibility of the General Director (Director)
1. To facilitate the Internal
Audit Department to perform the assigned duty and conduct units, managing,
professional operating departments to coordinate with the Internal audit
Department in accordance with provisions of the Internal Regulation on internal
audit or upon the direction of the Board of Directors.
2. To speed up units, managing,
professional operating departments to perform the proposals agreed with the
Internal audit Department or upon the direction of the Board of Directors.
3. To timely give a notice to
the Internal audit Department of any case of considerable losses or fraud, or
cases which are likely to occur risk, losses, fraud.
4. To ensure that the Internal
audit Department is fully informed of changes, newly arisen issues in the
activity of the credit institution, new initiative, products for early
definition of all related risks.
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1. To supply any necessary
information, documents, files for the work of internal auditors upon request of
the Internal audit Division;
2. To report immediately the
Internal audit Department when detecting weakness, shortcomings, violations,
risks or major losses of assets (or risk of asset losses), or where there is any
change in the internal inspection, control system at their units;
3. To implement proposals
already agreed with the Internal audit Department and/or in accordance with the
direction of the Board of Directors.
Section 7.
RESPONSIBILITIES OF UNITS OF THE STATE BANK
Article 30.
Responsibility of the State Bank Inspectorate
1. To perform the inspection,
supervision over the compliance with provisions on internal audit by credit
institutions in accordance with provisions of this Regulation.
2. Annually, to evaluate the
efficiency of the internal audit activity of credit institutions, to intensify
the advice, coordination with the Internal audit Department of credit
institutions for the purpose of improving the efficiency of the internal audit
activity, and inspection, supervision activity of credit institutions.
3. To deal with within the
competence or propose to the Governor of the State Bank to deal with cases
violating the provisions of this Regulation and related provisions of current
laws.
Article 31.
Responsibility of the Banks and Non-bank Credit Institutions Department
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2. To provide guidance to credit
institutions, branches of the State Bank in provinces, cities under the central
Government’s management in the implementation of this Regulation.
Chapter III
IMPLEMENTING PROVISIONS
Article 32.
Within the period of six (06) days since the
effectiveness of this Regulation, credit institutions must establish an
Internal audit Department; draw up, issue and send the Internal Regulation on
internal audit to the State Bank of Vietnam (the State Bank’s Inspectorate,
Banks Department, State Bank branches where joint stock credit institutions
locate their head offices (except for local People’s credit funds, they shall
only send to the State Bank branches in province, cities) for registration and
serving the inspection, supervision activity.
Article 33.
Any organization, which, individual, who violates
provisions in this Regulation, depending on the nature and seriousness of the
violation, shall be subject to administrative punishment in monetary area and
banking activity or prosecuted for criminal liability, and subject to the
compensation for any damage caused by them in accordance with provisions of
applicable laws.