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Circular 39/2011/tt-Nhnn: Independent Audit Regulation For Credit Institutions, Branches Of Foreign Banks

Original Language Title: Thông tư 39/2011/TT-NHNN: Quy định về kiểm toán độc lập đối với tổ chức tín dụng, chi nhánh ngân hàng nước ngoài

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CIRCULAR independent auditing regulations for credit institutions, branches of foreign banks _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law the State Bank of Vietnam the number 46/2010/QH12 16 June 2010;
Pursuant to the law on credit institutions the number 47/2010/QH12 16 June 2010;
Independent audit pursuant to the law No. 67/QH12-2011 October 2011;
Pursuant to Decree No. 96/2008/ND-CP on August 26, 2008 Government's functions, tasks, powers and structure of the State Bank of Vietnam;
The State Bank of Vietnam (hereinafter the Bank) independent auditing regulations for credit institutions, branches of foreign banks as follows: chapter I GENERAL PROVISIONS article 1. Scope this circular regulates independent audit for credit institutions, branches of foreign banks.
Article 2. Application object 1. Credit institutions include: a) of commercial banks, cooperative bank (hereafter referred to as the Bank);
b) non-bank credit organization;
c) microfinance institutions;
d) people's credit Funds have total assets of 50 billion or more on 30 September, the previous year's audit of adjacent.
Other people's credit funds performed independent audits according to the Bank's own rules state.
2. foreign bank branch.
3. independent audit organization, professional auditors, auditors and organizations and individuals concerning the independent audit credit institutions, branches of foreign banks.
4. The Central People's Credit Fund in time not yet converted under the provisions of the law on credit institutions perform audits in accordance to the Bank.
Article 3. Explanation of terms In this circular, the terms below are interpreted as follows: 1. the independent audit credit institutions, branches of foreign banks is the auditor of practice, organization of independent audit of the financial statements audit, the operation of the system of internal control of credit institutions foreign bank branches, and the work of other auditors to audit contract.
2. Audited financial statements is the practice auditor, independent audit organization check, give your opinion about the truthfulness and rationality on the key aspects of financial statements of credit institutions, branches of foreign banks in accordance with the auditing standards.
3. operational auditing internal control system is the professional auditors, independent audit organization check, give testimonials about compliance with the instructions of the State Bank in the formulation, implementation of internal control system and the performance of this system.
4. the financial statements of credit institutions include the financial statements of the credit organization law, consolidated financial statements of credit institutions for credit institutions are subject to consolidation according to the provisions of the law.
5. the internal control system is the set of mechanisms, policies, processes, internal regulations, the organizational structure of credit institutions, branches of foreign banks be built consistent with the guidelines of the State Bank and are organized to ensure the prevention, detection , timely handling of risk and achieve required.
6. independent audit organizations include enterprise auditing and audit business branch in Vietnam.
7. The list is not a list of audit independent audit organizations are not independent audit credit institutions, branches of foreign banks by State Bank announced.
Article 4. The audit scope 1. Recurring annually, credit institutions, branches of foreign banks to choose independent audit organization according to the provisions of this circular to auditor independence: a) financial reports;
b) operation of the system of internal control.
2. State Bank requires credit institutions to use one or several independent audit services as it deems necessary in the following cases: a) credit institutions risk being put into special control status.
b) credit institutions are considering to terminate the special control period.
c) credit institutions are organized according to the provisions of article 153 of the law of credit institutions.
d) other circumstances as stipulated by law.
3. The audited financial statements annual sales, report completed projects and the work of other auditors of the credit institutions, branches of foreign banks (if any) made under the provisions of the relevant laws.
Article 5. The audit recommended the State Bank encouraged credit institutions, branches of foreign banks to use the services of independent auditors to audit for these restrictions aim to ensure safety in the operation of credit institutions, branches of foreign banks.
Chapter II SPECIFIC PROVISIONS article 6. Choose time independent audit organization 1. Before the end of the financial year, credit institutions, branches of foreign banks to choose independent audit organization according to the provisions of this circular to audit the financial report, the operation of the internal control system in the next fiscal year.
2. in case of independent audit organization selected in the list not be audited for next year announced by the State Bank, credit institutions, branches of foreign banks must choose an independent audit organization meet the conditions specified in article 11 and article 12 of this circular to replace. Time limit for choosing independent audit organization replacing must not exceed 30 days from the date the State Bank announced the list not be audited.
Article 7. Authority to choose independent audit organization 1. Council members decided to choose independent auditing organization audits credit organization limited liability company.
2. The General Assembly of shareholders decided to or authorize the Board to decide (for case of credit organizations have regulations) the choice of independent audit organizations to audit credit institutions is a joint stock company.
3. The Congress members decide or authorize the Board to decide (for case of credit organizations have regulations) the choice of independent audit organizations to audit credit institutions is cooperative.
4. the Director-General (Executive Director) decided to choose independent auditing organization audits of foreign bank branches.
Article 8. Independent audit contents 1. Independent audit of financial statements of credit institutions, branches of foreign banks including auditing: a) the balance Sheet;
b) reported results of operations;
c) cash flow statements;
d) presentation of financial statements.
2. Independent audit activity of the system of internal control of credit institutions, branches of foreign banks include: a auditing) comply with the provisions of the current legislation, regulation of the State Bank of the internal control system of the credit institutions, branches of foreign banks;
b) auditing activities for the internal control system to ensure the following requirements: – effective and safe in operation; protection, management, use, the efficiency of assets and resources;
-Financial information systems and information management honest, reasonable, adequate and timely.
Article 9. Independent audit opinion 1. Based on the results of the audit, the auditor of practice and independent audit organizations must make comments in accordance with paragraph 1 Article 48 independent audit Law.
2. in case of audit reports except comments, credit institutions, branches of foreign banks must perform an audit.
3. within 30 days from the date of the audit report comments except, credit institutions, branches of foreign banks must choose an independent audit organization meet the conditions specified in article 11 and article 12 of this circular to audit back for content related comments except in the audit report.
4. Within a period of 90 days from the date of the audit report comments except, credit institutions, branches of foreign banks must submit in person or sent by post audit results for the State Bank to report.
Article 10. Independent audit results 1. Independent audit results for credit institutions, branches of foreign banks include: a auditing reports);
b) Messages and materials management, related evidence.
2. the audit report for the financial statements of credit institutions, branches of foreign banks must comply with the provisions of the law on independent auditing, accounting standards, auditing standards Vietnam and the provisions of relevant laws.
The audit report with respect to the operation of the system of internal control of credit institutions, branches of foreign banks must assess the situation in compliance with the provisions of the current law and the direction of the State Bank in the formulation, implementation of internal control systems and performance evaluation of the system for preventing , detection and timely handling of risk and the other objectives of the credit institutions, branches of foreign banks.
3. The message must reflect management issues, specific events in the audit process, including: the current state of practice, risks, recommendations of the Auditors and the comments of the Manager of the credit institutions, branches of foreign banks in relation to that event. Minimal management message must have the following: a) general approach, the scope of the audit and the need for additional requirements;
b) evaluate changes in policies and practices that affect important financial reporting system, internal control of credit institutions, branches of foreign banks;
c) risks can affect vital to the financial reporting system, internal control of credit institutions, branches of foreign banks;
d) proposes to adjust the Organization's independent audit and Auditors practicing for the incident, the event has affected or could affect vital to financial statements, activity of the system of internal control of credit institutions, branches of foreign banks;

DD) comments are not consistent with the Manager, operating credit institutions, branches of foreign banks on issues that can influence the financial report, the operation of the internal control system of the credit institution, the foreign bank branch or to the opinions of professional auditors and audit organizations. Practicing Auditors and audit organizations must specify the condition to solve the inconsistency of that opinion and the extent of the influence of the problem;
e) other issues agreement in contract audit.
Article 11. Conditions for independent audit organization performs audits of banks, non-bank credit institutions, branches of foreign banks 1. Established and had time to audit activities in Vietnam a minimum of 3 years;
2. Have the equity, capital from 10 billion;
3. the number of Auditors of practice from 10 persons or more;
4. Have at least 5 participants practice Auditors to audit a Bank, non-bank credit institutions, branches of foreign banks. In it, must have at least 3 auditors had practice from 10 years of experience in the field of financial accounting, banking or over.
5. The practice of Auditors and audit organizations representatives participating independent auditing banks, non-bank credit institutions, branches of foreign banks must meet the criteria specified in article 13 of this circular;
6. No relation to buy bonds, bought the property, which is a joint venture, buy shares to banks, non-bank credit institutions, branches of foreign banks be audited;
7. the customer is Not being granted credit and provided other services with preferential conditions of banks, non-bank credit institutions, branches of foreign banks be audited;
8. no major independent auditing banks, non-bank credit institutions, branches of foreign banks that during 5 consecutive years adjacent before audit;
9. Do not perform property valuation, management consulting, financial advisory, risk management consulting for banks, non-bank credit institutions, branches of foreign banks in previous years and in the audit;
10. Not being handled violated the law on audit independence in 2 adjacent years ago in auditing;
11. Do not belong in the list not be audited by the State Bank announced;
12. Not in these cases not be audited according to the provisions of article 30 of the law of independent audit;
13. Meet other regulations on auditor independence provisions in the text of the guidance law of independent audits.
Article 12. Conditions for independent audit organization performs audits microfinance organizations, the people's credit funds 1. The practice of Auditors and audit organizations representative of independent auditing organizations involved in microfinance, the people's credit funds must have the standards referred to in article 13 of this circular;
2. Do not belong in the list not be audited by the State Bank announced;
3. Not in these cases not be audited according to the provisions of article 30 of the law of independent audit;
4. Meet other regulations on auditor independence provisions in the text of the guidance law of independent audits.
Article 13. Standards for practicing Auditors and representatives of independent audit organization involved auditing credit institutions, branches of foreign banks 1. Have a certificate of registration issued by the Ministry of finance Auditors;
2. The auditor is the practice of Vietnam must have at least 2 years experience in audit after being issued a certificate of practice auditor;
3. Auditor of practice is the alien must have at least 2 years experience in auditing in Vietnam;
4. the customer is Not being granted credit, provided the other service with preferential terms of credit institutions, branches of foreign banks be audited;
5. Not being handled violated the law on audit independence in 2 adjacent years ago in auditing;
6. in No circumstances be audited according to the provisions of article 19 of law independent audit;
7. Meet other regulations on auditor independence provisions in the text of the guidance law of independent audits.
Article 14. The responsibility of audit independence organization, auditors audit engagement practice credit institutions, branches of foreign banks 1. The full implementation of the provisions of article 18, article 29 independent audit Law and the other provisions of the current legislation on the independent audit.
2. Responsibility for the adequacy, accuracy and timeliness of the information provided to credit institutions, branches of foreign banks in the process of selection of independent audit organizations.
3. understand, comply with the provisions of the law relating to financial reporting, the activities of credit institutions, branches of foreign banks.
4. Explain or provide information, data related to the audit activity as required by the State Bank.
5. In the course of the audit, if the credit institutions, branches of foreign banks be audited do not comply with the provisions of the law concerning the scope of the audit report and recommended credit institutions, branches of foreign banks be audited take measures to prevent , repair and handling of violations; write comments on audit reports or management letter as requested in paragraph 2 and paragraph 3 article 10 of this circular.
6. After the release of the audit report, if there is doubt or discover credit institutions, branches of foreign banks to be audited has critical violations do not comply with the laws and regulations related to the scope of the audit the audit organization must perform the procedures for notifying the unit audited and third persons under of audit standards and inform the Vietnam State Bank.
Article 15. The responsibility of the credit institutions, branches of foreign banks 1. The choice of independent audit organization in accordance with the provisions of this circular.
2. within 30 days from the date of the decision to choose independent audit organizations, must file in person or sent by post written notice about the independent audit organization selected for State Bank under the provisions of the following: a) credit institutions (except the people's credit funds) foreign bank branch, submit 1 a for the State Bank (banking supervision, inspection) and 1 a for the State Bank branch, central cities (hereafter referred to as the State Bank of province, City) where credit institutions are located.
b) people's credit Funds posted 01 a State Bank branch for the province, the city where people's credit fund is headquartered.
3. Implement fully the obligation specified in article 39 Audit Law and the other provisions of the current legislation on the independent audit.
4. Within a period of 90 days from the end of the fiscal year, to be paid directly or sent by post audit results to the State Bank as defined in point a and point b of paragraph 2 of this Article.
5. implementation of audit again for reported comments except. Filed directly or sent by post audit results back to the State Bank as defined in point a and point b of paragraph 2 of this Article.
6. Timely reports, proposals and comments submitted State Bank review, resolve the legal regulations for the following cases: a) does not ensure timely submit audit results;
b) arises disputes, disagreements about audit results.
7. Make the public disclosure of financial information in accordance with current regulations.
Article 16. The responsibility of the State Bank, the city where the organization is headquartered on credit 1. Within 30 days from the date of the audit results, the results of independent audits of the credit institution, the foreign bank branch is headquartered in the State Bank, the branch, the city must have written the report of Governor State Bank (through inspection agencies bank supervision) about: a) analyze, review and processing of results of independent audits, the results of audits of the credit institution (excluding the people's credit funds), foreign bank branch;
b) Put independent audit institutions on the list not be auditing credit institutions, branches of foreign banks;
c) requires credit institutions to use one or several independent audit services as defined in clause 2 4 of this circular.
2. Analysis, reviews and process the results of independent audits, audit results of the people's credit funds.
3. Reporting and timely recommendations to the Governor of the State Bank (through inspection agencies, bank supervision) handle the case prescribed in clause 6 article 15 of this circular.
4. Inspection, checking the implementation of the provisions of this circular and processed under the authority or petitions to State Bank Governor (through inspection agencies, bank supervision) handle for credit institutions, branches of foreign banks in violation of the provisions of this circular and the other provisions of the law on the independent audit.
Article 17. The Agency's responsibility to inspect, monitor Bank 1. Compilation, evaluation and processing of the report of the State Bank branch in the city, the provisions of paragraph 1 and paragraph 3 article 16 of this circular.
2. The analysis, assessment and recommendations the processing results of independent auditing credit institutions, branches of foreign banks.
3. The report, recommending the Governor State Bank review, resolve with respect to the case specified in clause 6 of this circular and article 15 requires credit institutions to use one or several independent audit services as defined in clause 2 4 of this circular.
4. Inspection, checking the implementation of the provisions of this circular and processed under the authority or petitions to State Bank Governor dealt with credit institutions, branches of foreign banks in violation of the provisions of this circular and the other provisions of the law on the independent audit.

5. Before 30 June each year, reports the Governor State Bank review, announced the list not be auditing credit institutions, branches of foreign banks.
6. The opinion of professional in the fields of banking, currency in the audit reports and management letters of credit institutions, foreign bank branch when required by legal authority.
Article 18. Resolving disputes in independent auditing the settlement of disputes on the independent audit of credit institutions, branches of foreign banks follow regulations of the auditing Law and the text of the relevant law.
Chapter III the TERMS of the IMPLEMENTATION of article 19. Effect 1. This circular effect since January 1st, 2012.
2. Decision No 121/2005/QĐ-NHNN dated Jan. 2, 2005 by the Governor of the State Bank issued the Statute of independent audit for credit institutions expired from the date of this circular effect.
3. With regard to the audit contract was signed prior to the date of this circular in force laws are continuing to follow the agreements already signed.
Article 20. Organizing Chief, Chief Inspector of banking supervision; The heads of the units belonging to State Bank; Director of State Bank branch, city; Chairman of the Board, the President of the Council members, the Director-General (Executive Director) credit institutions, branches of foreign banks; independent auditing organization; professional auditors, the auditor and the Organization, the individual concerned is responsible for the implementation of this circular.