Role of internal audit policies at credit institutions in Vietnam

According to Article 21 of Circular No. 44/2011/TT-NHNN of the State Bank of Vietnam, policies on internal audit are specified as follows:

- Internal audit policy shall be an official basis and guidance for the internal audit activity and for each internal auditor. Policy on internal audit shall include an internal regulation on internal audit, a set of professional virtue rules, internal regulations on the organization and operation of internal audit, a process on internal audit and related provisions.

- The internal regulation on internal audit should have an overview of the guideline, purpose, scope of operation, position, authority, function, assignment of the internal auditors in the credit institution, foreign bank's branch and relationship with other units, divisions; in which there are requirements of the independence, objectiveness, fundamental principles, requirements of the professional level and the assurance of quality of the internal audit activity. The internal regulation on internal audit of the credit institution, foreign bank's branch shall be established on the basis of the conformity with provisions of this Circular and current provisions of applicable laws.

- The process of 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 process on internal audit may be provided for in the Internal Regulation on internal audit.

- Based on provisions of this Circular, the credit institutions, foreign bank's branches shall draw up their policies and processes on internal audit in line with their specific operation characteristics. The credit institutions, foreign bank's branches are encouraged to apply international rules on internal audit providing that they are not in contravention to provisions of this Circular.

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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