Circular No. 16/2011/TT-NHNN on internal control and internal audit of the State Bank of Vietnam

CIRCULAR

Regulations on internal control and internal audit of the State Bank of Vietnam

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

The State Bank of Vietnam stipulates regulations on internal control and internal audit of the State Bank of Vietnam as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates regulations on internal control and internal audit of the State Bank of Vietnam (hereinafter referred to as the State Bank).

Article 2. Applicability

1. Units under the State Bank system include: Departments, Bureaus, Trading Offices, Office of the State Bank, Banking Supervision Authority, Representative Office, other subordinate units, and branches of the State Bank in provinces and centrally governed cities (hereinafter referred to as units).

2. Internal auditors, internal auditors, and staff engaged in internal control and internal audit work at the State Bank.

3. Organizations and individuals related.

Article 3. Explanation of Terms

1. The State Bank's internal control system is the overall set of mechanisms, policies, procedures, internal regulations, organizational structure of units under the State Bank established in accordance with legal provisions and organized for implementation to ensure that resources are managed and utilized in compliance with laws, for their intended purposes, economically and efficiently; prevent risks, promptly detect and handle fraudulent acts and errors; provide truthful information to serve timely management decisions; ensure the achievement of set objectives.

2. Internal control of the State Bank (referred to as internal control) is the work carried out by individuals or specialized internal control organizations within the unit to check the performance of each individual and unit in implementing relevant rules, mechanisms, business processes, and internal regulations, ensuring asset safety and effectively achieving set objectives within the unit.

3. Internal audit of the State Bank (referred to as internal audit) is the independent and objective activity of reviewing and evaluating the adequacy, effectiveness of the internal control system at units, thereby making recommendations and providing advice to enhance the effectiveness of the internal control system, contributing to ensuring safe, efficient, and lawful operations of the unit.

4. Relatives of internal auditors in this Circular are understood to be the biological father (mother), father (mother)-in-law, foster father (mother), spouse, biological children, foster children, full siblings of such internal auditors, and spouses of these individuals.

Chapter II

INTERNAL CONTROL

Section 1. Internal Control Activities

Article 4. Objectives of Internal Control Activities

1. Ensuring that the activities of each unit are implemented in the right direction, with effective and efficient measures for task execution.

2. Detecting and preventing potential risks arising in unit operations. Managing and utilizing assets and resources safely and efficiently.

3. Ensuring compliance with laws and relevant operational procedures and internal regulations.

4. Advising the Governor of the State Bank (hereinafter referred to as the Governor) on amending, supplementing, or issuing new mechanisms and regulations to strengthen measures for asset safety and improve operational efficiency.

Article 5. Principles of Internal Control Activities

1. Internal control activities must be established and maintained for all unit activities, with enhanced control over high-risk activities.

2. Leaders at all levels of the unit must identify and assess risks in operations to implement appropriate risk control and management measures.

3. Internal control activities are closely linked to daily unit activities; the internal control mechanism is defined and implemented directly within the unit's business processes in various forms such as:

a) A reasonable delegation and authorization mechanism is established and implemented; tasks must be clearly and transparently assigned; ensuring separation of duties and powers among individuals and departments within the unit; avoiding conflicts of interest, ensuring that no officer holds conflicting positions or tasks simultaneously; ensuring that officers in the unit have no opportunity to manipulate operations or conceal information for personal purposes or conceal violations of laws and relevant rules, mechanisms, procedures, and internal regulations.

b) A mutual inspection and supervision mechanism between individuals and departments during the handling of business processes.

c) Adherence to dual control principles. Dual control principles require that at least two people perform and review a task to ensure asset safety and effective work. No single individual should be able to execute and decide on a business process or specific transaction, except for transactions permitted under the law.

4. Ensuring that all officers, civil servants, and officials of the unit fully understand the importance of internal control activities and the role of each individual in the internal control process; while actively participating in the implementation of relevant regulations and business procedures effectively.

Article 6. Contents of Internal Control Activities

1. Issuing and regularly reviewing documents to amend and supplement in a timely manner internal regulations, business procedures, specific powers and responsibilities of each staff member in management and handling tasks. Maintaining internal control activities within each department to comprehensively monitor the unit's operations.

2. Regularly and promptly disseminating all relevant state regime documents related to banking activities, mechanisms, internal regulations, and business procedures of the State Bank to all staff members within the unit.

3. Ensuring compliance with accounting systems and maintaining internal financial information and compliance status in a timely manner to serve effective management and operation.

4. The information and computer systems of the unit must be monitored and protected reasonably and safely, and must have an independent backup management mechanism to handle unexpected situations such as natural disasters, fires... to ensure continuous and uninterrupted unit operations.

5. All individuals and units' departments must continuously and consistently check and self-check the implementation of business procedures and internal regulations related to their work and must be responsible for the results of their business activities before the unit leadership and the law.

Section 2. Organizational Structure of Internal Control

Article 7. Establishment of Specialized Internal Control Units at the Unit

1. Depending on the scale, level, scope, and special characteristics of the unit's operations, the Governor decides to establish an Internal Control Department/Unit or an Internal Control Officer, specialized staff for internal control activities at the unit. The Internal Control Department/Unit or Internal Control Officer, specialized staff for internal control activities are directly managed by the unit's head.

In all cases, whether there is an Internal Control Department/Unit or Internal Control Officer, the unit must establish, maintain, and organize the implementation of internal control activities according to the provisions of this Circular.

2. The Internal Control Department/Unit or Internal Control Officer, specialized staff for internal control activities have the responsibility to assist the unit's head in checking and supervising compliance with laws and internal regulations, business procedures, and internal rules of the unit; conducting self-inspection, review, and evaluation of the effectiveness and efficiency of the internal control system to detect, prevent, and promptly report to the unit's head for handling any deficiencies or violations in all business activities, improving the internal control system as prescribed, ensuring safe, efficient, and lawful unit operations.

3. The specialized Internal Control Department/Unit or Internal Control Officer, specialized staff for internal control activities at the unit have relatively independent roles when performing their duties, specifically:

a) Being provided with full and timely access to all information related to the unit's operations and having the right to utilize such information.

b) During the performance of their duties, Internal Control Officers and specialized staff for internal control activities at the unit only comply with laws and professional mechanisms, regulations, and business procedures of the industry, not being influenced by other personal relationships.

c) In case of discovering serious violation signs that may cause high risks or legal violations within the unit, the specialized Internal Control Department/Unit reports to the unit's head for handling within their authority; if the unit's head does not handle it, they have the right to report to the Governor (through the Director of the Internal Audit Department).

Article 8. Appointment, removal, and dismissal of internal auditors at units

The Department of Organization and Cadres shall coordinate with the Department of Internal Audit to submit to the Governor for the appointment, removal, and dismissal of internal auditors of the State Bank of Vietnam at units under the State Bank system based on the proposals of the unit heads and other relevant regulations.

Section 3. Responsibilities of Unit Heads and Heads of the Department of Internal Audit of the State Bank of Vietnam

Article 9. Responsibilities of Unit Heads

1. Shall be responsible before the Governor for implementing the objectives, policies of the State, the banking sector, and the quality of internal control activities at the unit.

2. Provide information related to internal control activities at the unit. Closely cooperate with the Department of Internal Audit in implementing supervisory measures and exploiting warning risk information.

3. Establish, maintain, and develop a reasonable and effective internal control system. Develop and issue specific internal regulations and business procedures. Ensure compliance with laws and regulations, business procedures, and internal provisions of the State Bank.

4. Implement delegation and authorization clearly and effectively.

5. Ensure financial and management information is truthful, reasonable, complete, and timely.

6. Regularly inspect and supervise the implementation of laws and regulations, business procedures, and internal provisions. Directly inspect and supervise business activities at the unit; review and assess the effectiveness and efficiency of the internal control system and organize annual self-inspection and assessment of the internal control system and each business activity. Self-inspection includes: Reviewing and assessing the completeness, effectiveness, and efficiency of the internal control system, identifying existing issues in the internal control system, and specifying necessary changes to the internal control system to address and resolve these issues.

7. Report to the Governor (through the Department of Internal Audit)‎ periodically or urgently on the results of self-inspection and assessment of the internal control system of the unit; propose measures to handle existing problems (if any) as required by the Governor. The self-inspection report on internal control activities sent to the Governor (through the Department of Internal Audit) must be submitted no later than December 15th each year.

8. Create conditions for the internal control department/unit at the unit to have relative independence when performing tasks.

Article 10. Responsibilities of the Head of the Department of Internal Audit

1. Guide the internal control process for specialized internal control departments/units at the unit.

2. Independently inspect and evaluate the internal control system of the unit. Report on the evaluation of the internal control system related to areas audited according to the approved audit plan by the Governor or as requested by the Governor, which is part of the internal audit report and shall be submitted to the Governor as prescribed.

Chapter III

INTERNAL AUDIT

Section 1. Internal Audit Activities

Article 11. Objectives of Internal Audit Activities

1. Independent assessment of the appropriateness and compliance with laws and industry mechanisms and policies for the audited unit.

2. Assessment of the completeness, effectiveness, and efficiency of the internal control system of the audited unit, aiming to improve the internal control system, corrective measures, enhance effectiveness and efficiency in managing and utilizing state funds and assets in the operations of the audited unit.

Article 12. Principles of Internal Audit Operations

1. Compliance with laws, regulations, and operational procedures of the State Bank. Implementation of audit programs and plans approved by the Governor.

2. Ensuring independence, objectivity, and professionalism; maintaining state secrets and the confidentiality of the audited entity. The independence and objectivity of internal audit are demonstrated as follows:

a) Auditors must have an impartial attitude, free from bias, and avoid any conflicts of interest. Each auditor has the right and obligation to report any issues that may affect their independence and objectivity before, during the internal audit process, to the Head of the Internal Audit Department.

b) Minimizing the involvement of auditors in auditing activities and units (departments) for which they were responsible for implementing operations or managing those units (departments) within the last five years.

c) Ensuring that auditors do not have conflicts of interest with the audited unit (department); auditors shall not conduct audits on units (departments) where the unit's (department's) management is a relative of the auditor.

d) Implementing rotation of auditors, not assigning an auditor to conduct audits at a specific unit (department) continuously for three times.

e) Measures should be taken to ensure the independence and objectivity of the internal audit work during the audit process at the audited unit and during the preparation and submission of the audit report.

3. Not hindering the normal operation of the audited unit; not interfering with the management work of the audited unit.

Article 13. Scope of Internal Audit

1. Auditing all activities and operational procedures at units under the State Bank system in accordance with the approved audit plan.

2. Special audits and advisory services upon request of the Governor.

Article 14. Contents of Internal Audit

Depending on the risk level of each unit, internal audit may assess the following main contents:

1. The completeness, effectiveness, and efficiency of the internal control system.

2. The completeness, timeliness, truthfulness, and accuracy of the accounting system and financial reports.

3. Ensuring compliance with laws, industry regulations, operational procedures, and internal rules of the unit.

4. Evaluating the economy and effectiveness of activities and resource utilization, thereby determining the appropriateness between achieved results and set objectives.

5. Conducting other contents as required by the Governor.

Article 15. Forms of Internal Audit

1. Pre-audit: This form of audit is conducted before the implementation of projects, programs, and activity plans of the audited unit, aiming to evaluate the reliability of information and documents, the economic feasibility, and the practicality and effectiveness of projects, programs, and activity plans; helping management levels obtain reliable information to make decisions.

2. Concurrent audit: This form of audit is conducted while the implementation of projects, programs, and activity plans of the audited unit is ongoing, aiming to evaluate the progress and quality of the implementation process; promptly identifying and recommending corrective measures for discrepancies, deficiencies, and weaknesses in the implementation of projects, programs, and activity plans, ensuring the best achievement of project and unit activity plan goals.

3. Post-audit: This form of audit is conducted after the completion of project, program, and activity plan implementation of the audited unit, aiming to fulfill the audit reporting, compliance audit, and operational audit contents and objectives for the audited unit's activities.

4. Other forms of audit appropriate to the tasks and authority of the State Bank's internal audit.

5. The Head of the Internal Audit Department decides on the appropriate audit form based on the audit plan approved by the Governor.

Article 16. Internal Audit Process

The internal audit process shall be established as a general audit process for audits prescribed by the Governor; detailed guidance documents on methods of conducting audits, preparing and submitting audit reports shall be issued by the Head of the Internal Audit Department.

Article 17. Internal Audit Plan

The internal audit plan includes the annual audit plan and the detailed audit plan for each audit:

1. Annual audit plan: Based on objectives, annual policies, risk levels of activities, and available human resources, the Head of the Internal Audit Department shall develop the annual internal audit plan to be submitted to the Governor for approval and decision.

The annual internal audit plan must meet the following requirements:

a) Risk-oriented approach: Activities, operations, and units with high risks must be audited at least once a year; processes and units assessed as having the lowest risk must be audited every three years;

b) Comprehensive coverage: All activities, operational processes, and units must be audited;

c) Adequate reserve time must be provided to conduct surprise audits upon the Governor's request or when there are indications of misconduct or high-risk situations in units;

d) The plan may be adjusted in case of significant changes in the scale of operations, risk trends, or available resources.

By December 31 each year, the Internal Audit Department must submit the next year's audit plan to the Governor for approval and notify the audit plan to units under the State Bank.

2. Detailed audit plan: Based on the annual audit plan approved by the Governor, the Head of the Internal Audit Department decides to establish and approve the detailed audit plan for each audit as appropriate. The content of establishing the detailed audit plan for each audit is stipulated in the Audit Procedure.

Article 18. Audit Decision

1. The Governor authorizes the Head of the Internal Audit Department to sign the Decision to establish audit teams according to the plans approved by the Governor and urgent audit requests from the Governor.

2. The audit decision must clearly record the following contents:

b) Audited unit;

c) Objectives, content, scope of the audit;

d) Time and location of the audit;

d) Location and time of audit;

đ) Team leader and members of the Audit Team.

3. The audit decision must be sent to the audited unit no later than three working days before the audit begins, except in cases of urgent audits requested by the Governor.

4. During the audit process, if it is necessary to change the content, scope, location, time of audit, and team members, the Audit Team Leader must report to the Head of the Internal Audit Department. The Head of the Internal Audit Department must issue a written decision and send it to the audited unit.

Article 19. Annual Audit Report

By January 30 each year, the Head of the Internal Audit Department is responsible for submitting the consolidated report on the results of the previous year's audits to the Governor. The consolidated report on the results of the previous year's internal audits must clearly state: the planned audit, completed audit work; major issues and violations identified; corrective measures recommended by internal audit; assessment of the internal control system related to audited activities and proposals to improve the internal control system; implementation status of audit recommendations and proposals.

Article 20. Prohibited Conduct in Internal Audit Activities

1. The following acts are strictly prohibited against the Internal Audit Department, the Head of the Audit Team, and members of the Audit Team:

a) Harassing, causing difficulties, and inconveniencing the audited unit;

b) Misusing position and authority for personal gain;

c) Illegally interfering with the normal operations of the audited unit;

d) Colluding with the audited unit to distort the content of audit information;

đ) Accepting bribes;

e) Disclosing state secrets, secrets of the audited unit; disclosing audit information about the situation and results that have not been officially announced;

g) Reporting false, incomplete audit results;

h) Committing other acts contrary to laws and regulations of agencies and organizations;

2. Strictly prohibit the following actions against audited units and related organizations and individuals:

a) Refusing to provide information and documents required for internal audit activities at the request of the Internal Audit Department, the Head of the Audit Team, and members of the Audit Team;

b) Obstructing and causing difficulties for internal audit activities;

c) Reporting false, untruthful, incomplete, and biased information related to internal audit activities;

d) Bribery of the Audit Team;

đ) Concealing violations of financial and budgetary laws;

e) Other prohibited acts as stipulated by law;

3. Strictly prohibit organizations and individuals from interfering illegally in internal audit activities.

Article 21. Directives and Supervision of Internal Audit Activities

The Governor directly directs and supervises the internal audit activities of the State Bank, specifically as follows:

1. Approving the annual audit plan;

2. Issuing or authorizing the issuance of documents on internal control and internal audit of the State Bank;

3. Issuing decisions on appointing, dismissing, or removing internal auditors of the State Bank;

4. Issuing decisions or authorizing the issuance of decisions regarding the implementation of audit conclusions and recommendations of the State Bank's internal audit;

5. Implementing necessary measures to supervise the internal audit activities of the State Bank; promptly proposing measures to handle cases of law violations and internal audit regulations. Organizing supervision of internal audit activities to ensure the objectives and effectiveness of internal audit activities;

6. Recommending competent authorities to handle law violations of organizations and individuals identified through internal audit results;

7. Ensuring adequate resources for internal audit activities of the State Bank;

8. Handling complaints, accusations, and recommendations from audited units related to internal audit activities of the State Bank within their authority;

Section 2. Organization and Structure of Internal Audit

Article 22. Organization and Structure of Internal Audit

The Internal Audit Department is a unit under the organizational structure of the State Bank, responsible for conducting internal audits of all activities at units within the State Bank system, accountable to the Governor for conclusions and recommendations in audit reports;

Article 23. Tasks and Authorities of the Internal Audit Department in Internal Control and Audit Activities

1. Duties:

a) Preparing and implementing the annual internal audit plan approved by the Governor, ensuring quality and efficiency;

b) Independently and objectively auditing and evaluating all units within the State Bank system according to the approved audit plan or upon the Governor's request based on risk assessment and impact on State Bank operations;

c) Evaluating the adequacy, appropriateness, effectiveness, and efficiency of the internal control systems of audited units;

d) Recommending corrective measures and handling violations; proposing improvements to enhance the effectiveness and efficiency of internal control systems. Monitoring and supervising the implementation of internal audit recommendations and external audit teams' recommendations for all units within the State Bank system;

đ) Developing, revising, and supplementing internal audit methods and scope of activities to keep up with banking developments and international practices;

e) Establishing files on qualifications and requirements for internal auditors as a basis for recruitment, promotion, rotation, and professional training. Planning and organizing training to improve and ensure the professional capabilities of internal auditors;

g) Maintaining regular consultations and exchanges with national audit organizations, independent auditors, and banking oversight agencies to ensure effective coordination; coordinating with relevant agencies for tasks related to internal audit functions;

h) Advising heads of units within the State Bank system on applying or modifying important business processes; risk identification, evaluation, and management processes; information, accounting, and bookkeeping systems without affecting the independence of internal audit;

2. Authorities:

a) Being equipped with full resources (human, financial, and other necessary means);

b) Actively carrying out assigned tasks according to the approved audit plan;

c) Receiving timely and complete information, documents, and records necessary for internal audit activities. Requesting audited units to report and explain (if necessary);

d) Accessing documents, records, and other materials of audited units to achieve audit objectives;

đ) Interviewing all staff of audited units regarding issues related to audit content;

e) Attending and reviewing meeting minutes of the State Bank's leadership related to internal audit work;

g) Supervising, evaluating, and monitoring the corrective actions taken by unit leaders regarding issues recommended by internal audit.

h) Participate in domestic and international training courses and surveys to enhance the capacity of internal auditing.

Article 24. Responsibilities and authorities of the Head of the Internal Auditing Department regarding internal control activities and internal auditing

1. Responsibilities:

a) Manage and direct the Internal Auditing Department to perform tasks as prescribed by the Governor and relevant laws related to internal control and internal auditing activities;

b) Organize the management and utilization of resources of the Internal Auditing Department to ensure economy and efficiency;

c) Sign decisions to establish audit teams, audit reports, and administrative documents of the Internal Auditing Department related to internal control and internal auditing activities, and bear responsibility before the Governor and the law for the content of such documents;

d) Examine and resolve complaints and suggestions about internal audit reports of audited units; examine and resolve reservations about audit conclusions made by audit team members;

đ) Coordinate with relevant units to organize training and instruction for staff involved in internal control and internal auditing to continuously improve their competence and capacity, thereby enhancing the level and capability of the internal control and internal auditing system;

e) Decide and implement specific measures to strengthen discipline and order in internal auditing activities; combat negative behaviors of auditing staff;

g) Implement measures to ensure independence in internal auditing activities;

h) Perform other tasks as required by the Governor related to internal auditing activities;

2. Authorities:

a) Propose to the Governor to issue regulations, procedures, and provisions on methods of internal auditing operations;

b) Suggest to the Governor to resolve difficulties and obstacles encountered in internal auditing work;

c) Suggest to the Governor to consider the responsibility and handle organizations and individuals who violate laws and regulations of agencies and organizations;

d) Exercise other authorities as prescribed by law;

Section 3. Controllers, Auditors, and Internal Audit Teams

Article 25. Standards for Controllers and Auditors of the State Bank

The Governor shall stipulate standards for controllers and auditors of the State Bank in accordance with the civil service ranks of the State.

Article 26. Appointment, Removal, and Dismissal of Controllers and Auditors at the Internal Auditing Department

The Department of Organization and Cadres shall submit to the Governor for the appointment, removal, and dismissal of internal controllers and auditors of the State Bank at the Internal Auditing Department based on the proposal of the Head of the Internal Auditing Department and other relevant regulations.

Article 27. Composition of the Audit Team

1. The Audit Team consists of the Team Leader, Deputy Team Leader (if any), and other members.

2. The Head of the Internal Auditing Department decides on the members of the Audit Team and appoints the Team Leader according to the requirements and content of the audit.

The Audit Team operates under the operational regulations decided by the Governor.

Article 28. Standards for the Team Leader of the Audit Team

1. The Team Leader of the Audit Team must meet the standards of the Controller and Auditor rank of the State Bank as prescribed and the following standards:

a) Possess sufficient professional qualifications, leadership capabilities, and work experience appropriate to the assigned tasks;

b) Be a Chief Controller or hold positions from Deputy Department Head and equivalent or higher;

c) In special cases, as decided by the Governor upon the recommendation of the Head of the Internal Auditing Department.

Article 29. Duties, powers, and responsibilities of the Audit Team Leader

1. Duties:

a) Develop detailed audit plans and audit outlines according to the contents approved by the competent authority;

b) Assign tasks to members of the Audit Team; direct and manage the Audit Team to conduct audits according to the approved audit plan;

c) Manage members of the Audit Team during the performance of audit tasks, promptly identify and take measures to correct any violations committed by members of the Audit Team;

d) Direct and monitor the performance of tasks by the Audit Team, promptly address any issues arising with the audited entity within the scope of the audit; report immediately to the Head of the Internal Audit Department any issues beyond the authority to handle;

đ) Direct and check the collection of audit evidence; record during the audit process and other relevant documents related to the audit content;

e) Summarize the audit results, organize discussions within the Audit Team to reach consensus on the evaluation, confirmation, conclusion, and recommendations in the draft audit report; report to the Head of the Internal Audit Department on the progress of implementing the audit plan and the results of audit activities. In case of serious violations discovered, report to the Head of the Internal Audit Department for the Governor's prompt handling;

g) Organize meetings to review the draft audit result report with the audited entity. The meeting must be recorded in minutes. The content of the minutes of the meeting to review the draft audit result report must fully, truthfully, and accurately record the opinions expressed by participants, especially those opinions not yet agreed upon between the Audit Team and the audited entity and the suggestions and recommendations of the audited entity;

h) Within three working days after reviewing the draft report at the audited entity, have the responsibility to submit the draft audit report along with the minutes of the meeting to review the draft audit report, audit evidence, individual audit results of each member of the team, and other relevant documents to the Head of the Internal Audit Department for audit report review (the draft audit report sent through official correspondence to the Internal Audit Department under the "Confidential" document submission system). In cases where software is used during the audit process, follow the computer audit procedures;

i) Finalize the audit report after reaching agreement with the audit report review department. In case of disagreement, report to the leadership of the Internal Audit Department for consideration and decision;

k) Sign the audit report and bear responsibility for the figures, evidence, evaluations, comments, and conclusions of the Audit Team stated in the audit report. The official audit report must be signed by the Head of the Internal Audit Department and the Audit Team Leader;

2. Authorities:

a) Require the audited entity and related entities to provide files, documents, information, and explanations regarding matters related to the audit content. Request asset inventory and account reconciliation of the audited entity related to the audit content. Propose the competent authority to conduct professional appraisals or consultations when necessary;

b) Require members of the Audit Team to report on audit results according to the assigned content. When there are differing opinions among members of the Audit Team regarding audit results, the Audit Team Leader has the right to decide and report in writing to the Head of the Internal Audit Department and the Governor about these differing opinions; bear responsibility before the Head of the Internal Audit Department and the Governor for these decisions;

c) Report and propose to the Head of the Internal Audit Department to reward or discipline, or request the Governor to reward or discipline members of the Audit Team who have outstanding achievements or committed violations during the performance of audit tasks;

d) Reserve audit conclusion opinions and bear responsibility for such reserved opinions;

3. Responsibilities:

a) Direct and manage the work of the Audit Team to ensure completion of the audit plan;

b) Organize checks and reviews of the quality of audits conducted by members of the Audit Team;

c) Bear legal responsibility and responsibility to the Governor for the accuracy, honesty, and objectivity of the figures, comments, conclusions, and recommendations in the audit report;

d) Bear joint liability for the actions of members of the Audit Team that violate laws during the performance of audit tasks;

đ) Ensure working conditions for all members of the Audit Team during the performance of audit tasks;

e) Clarify issues related to the audit report as required by the Governor and the Head of the Internal Audit Department;

g) Evaluate and comment on the results, sense of responsibility, and work attitude of members at the end of the audit, send to specialized departments and the Head of the Internal Audit Department as a basis for annual staff evaluation.

Article 30. Duties, powers, and responsibilities of members of the Audit Team

1. Duties:

a) Complete the assigned audit tasks and submit a written report on the audit results to the Head of the Audit Team;

b) Collect and evaluate audit evidence, keep audit logs and other relevant documents related to the audit content; retain and preserve audit files and submit them to the Head of the Audit Team upon completion of the audit; if there are discrepancies in figures or differing opinions between members of the audit team and the audited entity during the audit process, require confirmation from the audited entity;

c) Adhere to the task assignments of the Head of the Audit Team; comply with the regulations of the Audit Team;

d) Follow the directives and conclusions of the Head of the Audit Team.

2. Authorities:

a) When conducting audits, members of the Audit Team have the right to independently comment, assess, conclude, and recommend regarding the audited contents;

b) Request the audited entity and related organizations and individuals to provide complete and timely information and documents related to the audit content;

c) Reserve opinions in writing within the scope of their assignment; report to the Head of the Audit Team and the Director of the Internal Audit Department for review;

d) Propose that the Head of the Audit Team request the audited entity to explain issues related to the audit content; propose inviting auditing experts and collaborators when necessary;

đ) Be guaranteed by the State Bank and the audited entity the necessary conditions and means to conduct effective audits.

3. Responsibilities:

a) Fulfill audit tasks and be responsible before the Head of the Audit Team for the execution of assigned audit tasks; provide assessments, confirmations, conclusions, and recommendations on audited contents based on collecting and evaluating appropriate audit evidence;

b) Comply with laws, operational principles, standards, audit procedures, professional methods, and other relevant regulations of the state and the industry;

c) Be accountable under the law and to the Governor for the evidence, evaluations, confirmations, conclusions, and recommendations made;

d) Maintain confidentiality of information and documents collected during the audit process;

đ) Continuously study and train to enhance professional knowledge, skills, and ethical standards, ensuring sufficient competence and expertise suitable for assigned tasks;

e) Upon completion of the audit period, members of the audit team shall submit written opinions to the Director of the Internal Audit Department, providing feedback on the management, sense of responsibility, and work attitude of the Head of the Audit Team;

Section 4. Responsibilities of the Audited Entity

Article 31. Responsibilities and Powers of the Audited Entity

1. Responsibilities:

a) Comply with internal audit decisions;

b) Prepare and submit in full and in a timely manner all documents, files, and reports as required by the Internal Audit Department;

c) Provide complete files and documents related to the audit content and be responsible before the Governor for the accuracy, truthfulness, and objectivity of the provided information and documents; respond and explain fully and promptly any issues raised by the audit team; arrange working locations and conditions for the audit team;

d) Create favorable conditions for the audit team during the performance of their duties;

đ) Implement audit conclusions and recommendations fully and promptly, and report in writing to the Internal Audit Department on the implementation of audit conclusions and recommendations;

2. Authorities:

a) Refuse to provide unrelated information and documents.

b) Explain in writing about issues mentioned in the draft audit report if deemed inappropriate;

c) Appeal to the Director of the Internal Audit Department or the Governor regarding audit assessments, conclusions, and recommendations if there is sufficient basis to assert that the audit opinions are unreasonable or contrary to the law;

d) Appeal to the Director of the Internal Audit Department or the Governor regarding illegal actions of the Head of the Audit Team and members of the Audit Team; propose replacing members of the Audit Team if there is sufficient evidence of legal violations or breaches of audit principles affecting the truthfulness and objectivity of the audit results;

đ) Upon completion of the audit period, heads of units shall evaluate and comment on the sense of responsibility and work attitude of the Head of the Audit Team and members of the Audit Team, submitting these to the Director of the Internal Audit Department as a basis for annual assessment and evaluation of staff;

e) Exercise other powers as prescribed by law and the State Bank.

Chapter IV

IMPLEMENTING PROVISIONS

Article 32. Effectiveness

This Circular takes effect from October 1, 2011. Decision No. 486/2003/QĐ-NHNN dated May 19, 2003 of the Governor of the State Bank promulgating the Internal Control and Internal Audit Regulations of the State Bank ceases to be effective from the date this Circular takes effect.

Article 33. Implementation Organization

Heads of Departments, Bureaus, Trading Offices, the Office of the State Bank, Banking Supervision and Inspection Authority, Representative Offices, other subordinate units, and State Bank branches in centrally governed cities and provinces are responsible for implementing this Circular./.