What is the Internal Audit of the State Bank of Vietnam? What are regulations on the internal audit plans of the State Bank of Vietnam?

What is the Internal Audit of the State Bank of Vietnam (SBV)?

Pursuant to Article 62 of the Law on the State Bank of Vietnam in 2010 stipulating Internal Audit:

Internal Audit

1. Internal Audit is a unit belonging to the organizational structure of the State Bank which shall conduct internal audit and control within the State Bank.

2. The regulation on internal audit and control shall be promulgated by the Governor of the State Bank.

As regulated above, Internal Audit is a unit belonging to the organizational structure of the State Bank which shall conduct internal audit and control within the State Bank.

What are regulations on the internal audit plans of the SBV?

Pursuant to Article 22 of the Circular 06/2020/TT-NHNN, internal audit plans include annual audit plan and detail audit plan:

[1] Annual audit plan:

- Based on objectives, annual policy management plan, result of risk assessment and available resources, the Director of the Internal Audit Department shall develop an annual plan for internal audit of SBV and submit it to the Governor for approval before December 21 and notify the audit plan to units affiliated to SBV.

- The plan shall contain contents, scope and subjects of the audit, and comply with the following requirements:

+ Regarding risk-based internal audit: priority should be given to audit of activities, operations and operations/management units at high level of risk.

+ Comprehensiveness must be ensured: all activities, business processes and units are audited.

+ Adequate time must be set to be able to conduct unscheduled audits at the request of the Governor or upon receipt of information about signs of offences or high risks.

+ The plan may be adjusted if there is any basic change to contents and scope of audit, risk variations and current resources or at the request of the Governor.

[2] Detailed audit plan:

- Based on the annual audit plan approved by the Governor, the Director of the Internal Audit Department shall develop and promulgate a detailed audit plan suitable for resources and requirements of each audit, including expected date of audit, members of audit delegations, focus of the audit and other relevant requirements.

- The detailed audit plan shall be formulated in accordance with the regulations set out in the process for internal audit of SBV.

What is the Internal Audit of the State Bank of Vietnam? What are regulations on the internal audit plans of the State Bank of Vietnam? - image from internet

What are the tasks of the Internal Audit Department in Vietnam?

Pursuant to Clause 1 Article 26 of the Circular 06/2020/TT-NHNN stipulating the tasks of the Internal Audit Department in Vietnam:

- Formulate annual or unscheduled internal audit plans and submit them to the Governor for approval.

- Assess the reasonableness, efficiency and effectiveness of the internal control system and compliance and operational efficiency of audited units; propose measures to correct errors and take actions against violations; provide advice on measures to perfect and improve efficiency and effectiveness of the internal control system; supervise and inspect the implementation of propositions and recommendations given by internal auditors.

- Develop, add and perfect methods for internal audit of SBV with the aim of increasing quality and audit effectiveness and satisfy management and administration requirements laid down by the SBV’s management board.

- Advise heads of units affiliated to SBV on completing the internal control system and risk assessment and management process in a manner which is suitable for their functions and tasks.

- cooperate with relevant units affiliated to SBV in establishing a competency framework for bank controllers to form the basis for recruitment, employment and training of internal controllers and auditors.

- Establish and maintain a mechanism for professional exchange with the State Audit Office of Vietnam, Banking Supervision Agency and relevant audit authorities and units in order to provide professional advice and establish effective cooperation; act as a unit in charge and cooperate with relevant authorities and units in handling issues related to functions and tasks of internal auditors.

Best regards!