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THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
486/2003/QD-NHNN
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Hanoi, May 19, 2003
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DECISION
PROMULGATING THE REGULATION ON INTERNAL
CONTROL AND INTERNAL AUDIT OF THE STATE BANK
THE STATE BANK GOVERNOR
Pursuant to Vietnam State Bank Law No.
01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No. 86/2002/ND-CP of November 5, 2002
defining the functions, tasks, powers and organizational structures of the
ministries and ministerial-level agencies;
At the proposal of the director of the General Control Department,
DECIDES:
Article 1.- To promulgate together with this Decision the
Regulation on internal control and internal audit of the State Bank.
Article 2.- This Decision takes effect 15 days after its
publication in the Official Gazette and replaces Decision No. 93/1999/QD-NHNN4
of March 20, 1999 promulgating the Regulation on internal control and audit of
the State Bank.
Article 3.- The director of the Office, the director of the
General Control Department, the heads of the units of the State Bank and the
directors of the State Bank’s branches in the provinces and centrally-run
cities shall have to implement this Decision.
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GOVERNOR OF THE STATE BANK
Le Duc Thuy
REGULATION
ON INTERNAL CONTROL AND INTERNAL AUDIT OF THE
STATE BANK
(Promulgated together with Decision No. 486/2003/QD-NHNN of May 19,
2003 of the State Bank Governor)
Chapter I
GENERAL PROVISIONS
Article 1.- Scope and subjects of application
This Regulation prescribes the organization of
the work of internal control and internal audit in the State Bank’s system.
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1. Units mean departments, transaction offices,
branches, non-business units and representative offices of the State Bank.
2. Internal control of the State Bank (called
the internal control for short) means the inspection of work performance by
each individual or unit, conducted by specialized control individuals or sections
in units, in order to ensure the asset safety and efficient realization of the
objectives set by each unit.
3. Internal audit of the State Bank (called the
internal audit for short) means the independent study and assessment of the
adequacy and efficiency of the internal control system; the truthfulness,
accuracy and adequacy of information in financial statements or professional
reports of the State Bank as well as the quality of assigned-task performance
by units.
4. Double-control principle means a requirement
in the task assignment at units that a work should be performed and inspected
by at least two persons, thus ensuring the asset safety and work efficiency.
Article 3.- Objectives of the internal control and internal
audit
1. To ensure the units’ compliance with the
undertakings, policies and laws of the State, professional regulations and
procedures of the State Bank, prevent violations of, or non-compliance with,
laws and professional processes, which may lead to operation risks.
2. To ensure that each unit operate in line with
the set orientations and its measures for organizing the task performance be
effective and efficient.
3. To identify and assess the accuracy, adequacy
and rationality of information in the units’ financial statements and
professional reports.
4. To protect the asset safety and prestige of
the State Bank.
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Chapter
II
INTERNAL CONTROL
Article 4.- Internal control must be regularly and
constantly organized and conducted in each work of individuals, sections,
divisions and leading officials at each unit.
Article 5.- Heads of units shall base themselves on the
assigned functions and tasks to organize fully and efficiently internal
control, and be answerable to the Governor for the quality of internal control
activities at their respective units.
Article 6.- Contents of internal control activities
1. Promulgating working regulations applicable
to unit leaders, specifying the powers and responsibilities of each leading
official in the administration and handling of works. Unit heads shall
authorize and assign responsibilities for maintaining the internal control work
to each section or division in their units, with a view to comprehensively
controlling their units’ operations.
2. Regularly, promptly and adequately
disseminating the State’s regime documents on banking activities, the State
Bank’s mechanisms, professional regulations and processes to all officials and
employees in units.
3. Assigning tasks and responsibilities to
sections, divisions and individuals in units on the double-control principle,
thus ensuring that all works are performed and double-checked. Each individual
or section shall have to exert self-control and take self-responsibility for
the assigned works, ensuring work efficiency and compliance with law,
professional regulations and processes.
4. Unit leaders of each level must assess the
risk degree of each professional operation in order to put forward appropriate
control measures: supervision, pre-control, post-control, extraordinary
control.
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Article 7.- Internal control sections (in units having
organized their own internal control sections or divisions) shall be subject to
the direct management by unit heads, assist unit heads in organizing and
conducting the internal control in all operating domains of the units, and
submit to the direct instruction by the General Control Department in terms of
control processes and methods.
Article 8.- Units heads shall have to create conditions for
controllers in their units to play a relatively independent role in performing
their control tasks.
Chapter
III
INTERNAL AUDIT
Article 9.- The General Control Department shall conduct the
internal audit of the units attached to the State Bank, and be answerable to
the Governor for its conclusions and proposals stated in internal audit
reports.
Article 10.- Internal audit principles
1. Complying with laws, professional regulations
and processes as well as audit contents and programs already approved by the
State Bank Governor.
2. Ensuring the independence, truthfulness,
objectivity and confidentiality of State secrets and secrets of audited units.
3. Not obstructing the operations and
interferring in the administration activities of audited units.
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1. Auditing of financial statements of the State
Bank.
2. Auditing of units’ compliance.
3. Auditing of operations, assessment of
performance of tasks by units, with a view to attaining the general objectives
of the State Bank.
Article 12.- Financial statement audit
Financial statement audit means that the State
Bank’s controllers independently examine and assess the State Bank’s financial
statements and information relevant thereto in order to certify their accuracy,
truthfulness, adequacy, rationality and conformity with the current accounting
and cost-accounting, financial management and capital construction principles
and regimes of the State and the State Bank.
Article 13.- Compliance audit
Compliance audit means that the State Bank’s
controllers base themselves on the current regulations of the State and the
State Bank as well as the units’ implementation situation to examine and assess
the audited units’ compliance with laws, regulations, mechanisms and professional
processes in order to detect violations of regulations, wrongdoings in the
administration and management, and preclude risks in banking activities.
Article 14.- Operation audit
Operation audit means that the State Bank’s
controllers base themselves on dossiers and documents to independently examine
and assess the task performance by an unit in the organization, management,
administration and use of resources and administrative as well as
techno-professional measures to attain the objectives, and on that basis to
assess the effectiveness and efficiency of such units’ operations.
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1. Audit delegations’ heads shall have to direct
and administer common works of their delegations, thus ensuring the fulfillment
of audit plans.
2. To request the audited units and concerned
units to supply dossiers, documents and information within the scope of the
audit drive.
3. To promptly settle problems in relation with
the audited units in the auditing course within the ambit of their competence,
and to immediately report serious matters to the leadership of the General
Control Department.
4. To sum up and make audit reports and adopt
them at the audited units; to be answerable to the Governor and the director of
the General Control Department for audit conclusions of their delegations; to
gather and keep audit dossiers.
Article 16.- Responsibilities and powers of units subject to
internal audit
1. To abide by internal audit decisions.
2. To supply adequate information, dossiers,
documents and means in service of internal audit.
3. To bear responsibility for the truthfulness,
completeness and accuracy of all documents supplied to internal audit
delegations.
4. To be entitled to explain and report to the
audit delegations on the latter’s conclusions or reserve and submit their
opinions to the competent authorities in cases where they disagree with the
audit delegations.
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Article 17.- Responsibilities and powers of the director of
the General Control Department of the State Bank
1. To promulgate or submit to the Governor for
promulgation processes of internal audit of the State Bank.
2. To work out and submit internal audit
programs and plans to the State Bank Governor for approval.
3. To be authorized by the State Bank Governor
to sign decisions on setting up internal audit delegations under the plans
already approved by the Governor, except for audit delegations at the
departments of the Central Bank.
4. To perform other tasks prescribed in the
Regulation on organization and operation of the General Control Department.
Chapter
IV
IMPLEMENTATION PROVISIONS
Article 18.- The director of the General Control Department
of the State Bank shall guide in detail the implementation of this Regulation.
Article 19.- The amendments and/or supplements to this
Regulation shall be decided by the State Bank Governor.
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STATE BANK GOVERNOR
Le Duc Thuy