Responsibility for performing inspection, verification, review for activities of the credit institution in Vietnam

According to Article 18 of Circular No. 44/2011/TT-NHNN of the State Bank of Vietnam, duties of the Internal audit division are specified as follows:

- To set up operational processes of internal audit at the credit institution for submission to the Controllers’ Committee for review and approval after reporting to the Board of Directors, Board of Members.

- To make annual or unexpected plan on internal audit and perform internal audit activities in line with the plan or unexpected audit upon request by the Board of Directors, Board of Members, Controllers’ Committee; to perform the approved policies, processes and procedures of internal audit on the basis of ensuring the quality and efficiency.

- To perform independent, objective inspection, verification, review for all units, divisions, activities of the credit institution, foreign bank's branch (policies, procedures, processes or problems incurred in the operation) based on the risk level (high, low or medium) and the impact on the credit institution’s operation. In respect of any matter that may cause bad effects to the credit institution’s operation, the internal auditor should make timely reports on the nature and its impact on the credit institution’s operation and suggest practical recommendations to prevent and overcome these matters.

- To suggest measures for correcting and overcoming shortcomings; suggest the settlement of violations; recommend measures for completing, enhancing the effectiveness, efficiency of the internal control system.

- To evaluate the correspondence of activities in order to prevent, surmount 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.

etc.

View details at Circular No. 44/2011/TT-NHNN of the State Bank of Vietnam, effective from February 12, 2012.

Thuy Tram

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