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As one of the latest founded departments of the DIV's system, the Internal Audit Panel has effectively made contribution together with regional branches and other departments in the headquarters of the DIV to improve the DIV's role in the national financial supervisory system through protecting legitimate rights and interests of depositors, contributing to the stability of the credit institutions system, ensuring the safety and sound development of the banking system.
In acknowledgment of the importance of the internal audit, the BoD has paid attention to the construction and promulgation of the basic but quite comprehensive legal framework for the Internal Audit Panel to promote its role and realize its functions and tasks with effectiveness and efficiency. The legal framework includes: the Decision No. 333/QD-BHTG-HDQT dated 06 June 2016 regulating the functions, tasks and activities of the Internal Audit Panel; the Decision No. 984/QD-BHTG dated 15December 2016 regulating the organization and operation of the Internal Audit Team; the Decision No. 1032/QD-BHTG dated 29December 2016 stipulating the internal audit process; the Instruction No. 1202/HD-BHTG dated 1December 2016 guiding the operation and use of the internal audit software.
The main task of the Internal Audit Panel is providing objective and independent consultancy to assist the BoD in administering the system upon the review, examination and assessment of the sufficiency and efficiency of the process of management and administration, risk management and internal control processes of the DIV, including the financial reporting process and other financial and accounting operations. Thereby the Internal Audit Panel makes an audit report including recommendations for the DIV to improve its efficiency and hit its targets of strategy, operations, compliance and finance.
- For the compliance audit, the Internal Audit Panel regularly audits all departments of the DIV according to an annual plan. By September 30, 2021, the Internal Audit Panel completed 11 compliance audits of 08 branches and 04 audits of core operatingdepartments at the DIV’s headquarters. In general, audited departments had tightly followed the direction of the DIV's approved plans and programs to realize their assigned tasks. In terms of financial management, audited departments complied with state laws and regulations of the DIV; Economic activities arose in the period were fully reported in books and accounting records. Accounting documents were filed to be scientific and sufficient, easy to look up then facilitate the management and examination. The audits also ensure all departments' expenses to be within limits as regulated by the DIV's statute of internal expenditure.
- For the appraisal of financial statements, the Internal Audit Panel regularly conducts appraisal of annual financial statements, then makes appraisal reports on the financial statements for submission to the BoD for approval of official DIV's financial statements sent to relevant state regulators.
- For the monitoring of the DIV's activities in the direction of the BoD and the implementation of major plans of the DIV, the Internal Audit Panel regularly makes 6-month and 9-month monitoring reports. On the basis of these reports, the BoD through the General Director assigns relevant individuals and units to realize the recommendations of the Internal Audit Panel in the monitoring reports. specifically, the reports look into and make recommendations on concerns arised in the process of implemetation of core operations, especially financial and accounting activities, etc. in order to ensure the progress and legitimacy of the system's activities.
Along with the development of the market economy, the internal audit operation has bigger importance in enterprises and gained greater attention of ministries, agencies and the Government. On January 22, 2019, the Government promulgated the Decree No. 05/2019/ND-CP on internal audit. On June 30, 2020, the SBV issued the Circular No. 06/2020/TT-NHNN regulating the internal audit and internal control of the SBV. On 10 July 2020, the Ministry of Finance ordained the Circular No. 66/2020/TT-BTC on the template statute of internal audit for enterprises.
In order to improve the legal framework for the internal audit of the DIV in accordance with state laws and practical situation, as well as to enhance the effectiveness and efficiency of the internal audit of the DIV, the BoD approved the “Statute on internal audit of the Deposit Insurance of Vietnam” within the plan of administration developing documents of DIV in 2021, expectedly enforced in the fourth quarter of the year. The draft statute mainly includes: (i) General provisions of internal audit; (ii) Specific regulations of internal audit; and (iii) Responsibilities of units and individuals of the DIV for the internal audit. The draft statute added some regulations to the template statute such as: professional standards and ethics, independence and objectiveness of internal auditors...
Besides, all staff of the Internal Audit Panel constantly study to improve their professional competence to meet updated requirements and deal with changes in internal audit. Therefore, the quality of audit reports would be upgraded and better consultancy would be delivered to the BoD so that the BoD could take it as a useful reference for making right and timely decisions to meet operational targets, short term, mid-term and long term strategies of the DIV.
