Some suggestions for building gra o tron chomikuj internal audit in banking integration period | FINANCIAL LAW
With more than 100 banking system is currently available in Vietnam, including state-owned commercial banks, gra o tron chomikuj joint-stock commercial bank (Commercial), foreign banks, particularly the development of the commercial banks hot in recent times the problem is the challenge for bank management. The pressure to increase charter capital, strong growth in total assets, the rapid growth of credit, gra o tron chomikuj rising bad debts, expansion of branch gra o tron chomikuj / transaction ... is that the issue to be discussed in budget management goods. Further international integration gra o tron chomikuj requires banks to Managing international rules which form the internal audit function is a key issue. Internal audit is an effective management tool in the integration period. Within the scope of this article authors would like to clarify two concepts of internal control and internal audit, and pointed out the benefits of internal audit activities and propose gra o tron chomikuj some solutions to build strategic internal audit in the modern commercial bank.
In this section, the author would like to clarify the concept of internal control (KSNB), internal audit (IA) according to the current regulations of the State Bank of Vietnam (SBV) Vietnam Circular No. 44/2011 / TT-SB, dated 29/12/2011.
According to Article gra o tron chomikuj 3 TT 44/2011/TT - SB, the internal control gra o tron chomikuj system is a collection of mechanisms, policies, procedures, internal regulations, the organizational structure of the credit institution, bank branches Foreign construction conform to current legislation and implementation to ensure the prevention, detection, timely handling of risks and achieve the goals that the organization has set credit .
Internal control systems gra o tron chomikuj of credit gra o tron chomikuj institutions must be evaluated independently according to the provisions of Clause 3, Article 40 of the Law on credit. Every year, the internal audit of credit institutions to make assessments to review the appropriateness, effectiveness and efficiency of internal control systems. The inspection and independent assessments must be carried out by the internal audit department or independent auditing organization or another organization qualified and capable of performing the inspection, according to an independent evaluation State Bank regulations. (Article 7 TT44/2011/TT-NHNN). Thus we can see real internal audit assessment tasks testing system of internal control gra o tron chomikuj of credit institutions, internal gra o tron chomikuj auditor will not carry out a number of interventions to room KSNB as: review and evaluate the method, the test program KSNB room, audit sampling Work KSNB room. Internal audit should be separate from the internal control. Internal audit is the review and evaluation of independence, objectivity of the internal control system; independent assessment of the suitability and regulatory compliance, internal policies, procedures and processes is set in a credit institution, foreign bank branches; provide recommendations to improve the effectiveness of systems, processes, regulations, institutions and contribute to ensuring the safe operation of credit, performance results in accordance with law. Objectives and basic functions of internal audit include:
Internal Audit conducted gra o tron chomikuj all 03 types of audit: audit activities, audit compliance, and audit financial gra o tron chomikuj statements. Thus the scope of work of the internal audit function covers not only the compliance audit but also evaluate the system through audit and operational audit financial statements.
The investment in developing a professional gra o tron chomikuj Internal Audit department is in accordance with international trends in construction management model modern banking. With these functions, the scope of activities, plus the professionalism and independence, Internal Audit will evaluate the entire system KSNB Bank, to ensure enhanced performance of the whole system gra o tron chomikuj . Internal audit work is really useful tool to help BOD and executives ensure the implementation of Proportional 3 objectives: growth, efficiency and control. Recognizing the importance of this issue, the bank has been building for themselves a system of internal audit an optimum way.
To develop an appropriate strategic framework, gra o tron chomikuj the Internal Audit department must first determine gra o tron chomikuj expectations (requirements) of senior leaders, the Board of Directors (BOD) and the Internal gra o tron chomikuj Audit Directorate of the value that gives organizations function. On that basis, describe the duties gra o tron chomikuj of the Internal Audit Charter adopted, the regulation is final audit and strategy development official for the IA.
In the first phase, gra o tron chomikuj the internal audit of the Bank should focus on traditional areas including compliance audits in the field of finance and operations, improve gra o tron chomikuj internal control processes. In the next phase of internal audit focused gra o tron chomikuj on the following areas: business process improvement, risk management, corporate governance, technology, fraud and advisory services. Internal gra o tron chomikuj audit is always to ensure building
With more than 100 banking system is currently available in Vietnam, including state-owned commercial banks, gra o tron chomikuj joint-stock commercial bank (Commercial), foreign banks, particularly the development of the commercial banks hot in recent times the problem is the challenge for bank management. The pressure to increase charter capital, strong growth in total assets, the rapid growth of credit, gra o tron chomikuj rising bad debts, expansion of branch gra o tron chomikuj / transaction ... is that the issue to be discussed in budget management goods. Further international integration gra o tron chomikuj requires banks to Managing international rules which form the internal audit function is a key issue. Internal audit is an effective management tool in the integration period. Within the scope of this article authors would like to clarify two concepts of internal control and internal audit, and pointed out the benefits of internal audit activities and propose gra o tron chomikuj some solutions to build strategic internal audit in the modern commercial bank.
In this section, the author would like to clarify the concept of internal control (KSNB), internal audit (IA) according to the current regulations of the State Bank of Vietnam (SBV) Vietnam Circular No. 44/2011 / TT-SB, dated 29/12/2011.
According to Article gra o tron chomikuj 3 TT 44/2011/TT - SB, the internal control gra o tron chomikuj system is a collection of mechanisms, policies, procedures, internal regulations, the organizational structure of the credit institution, bank branches Foreign construction conform to current legislation and implementation to ensure the prevention, detection, timely handling of risks and achieve the goals that the organization has set credit .
Internal control systems gra o tron chomikuj of credit gra o tron chomikuj institutions must be evaluated independently according to the provisions of Clause 3, Article 40 of the Law on credit. Every year, the internal audit of credit institutions to make assessments to review the appropriateness, effectiveness and efficiency of internal control systems. The inspection and independent assessments must be carried out by the internal audit department or independent auditing organization or another organization qualified and capable of performing the inspection, according to an independent evaluation State Bank regulations. (Article 7 TT44/2011/TT-NHNN). Thus we can see real internal audit assessment tasks testing system of internal control gra o tron chomikuj of credit institutions, internal gra o tron chomikuj auditor will not carry out a number of interventions to room KSNB as: review and evaluate the method, the test program KSNB room, audit sampling Work KSNB room. Internal audit should be separate from the internal control. Internal audit is the review and evaluation of independence, objectivity of the internal control system; independent assessment of the suitability and regulatory compliance, internal policies, procedures and processes is set in a credit institution, foreign bank branches; provide recommendations to improve the effectiveness of systems, processes, regulations, institutions and contribute to ensuring the safe operation of credit, performance results in accordance with law. Objectives and basic functions of internal audit include:
Internal Audit conducted gra o tron chomikuj all 03 types of audit: audit activities, audit compliance, and audit financial gra o tron chomikuj statements. Thus the scope of work of the internal audit function covers not only the compliance audit but also evaluate the system through audit and operational audit financial statements.
The investment in developing a professional gra o tron chomikuj Internal Audit department is in accordance with international trends in construction management model modern banking. With these functions, the scope of activities, plus the professionalism and independence, Internal Audit will evaluate the entire system KSNB Bank, to ensure enhanced performance of the whole system gra o tron chomikuj . Internal audit work is really useful tool to help BOD and executives ensure the implementation of Proportional 3 objectives: growth, efficiency and control. Recognizing the importance of this issue, the bank has been building for themselves a system of internal audit an optimum way.
To develop an appropriate strategic framework, gra o tron chomikuj the Internal Audit department must first determine gra o tron chomikuj expectations (requirements) of senior leaders, the Board of Directors (BOD) and the Internal gra o tron chomikuj Audit Directorate of the value that gives organizations function. On that basis, describe the duties gra o tron chomikuj of the Internal Audit Charter adopted, the regulation is final audit and strategy development official for the IA.
In the first phase, gra o tron chomikuj the internal audit of the Bank should focus on traditional areas including compliance audits in the field of finance and operations, improve gra o tron chomikuj internal control processes. In the next phase of internal audit focused gra o tron chomikuj on the following areas: business process improvement, risk management, corporate governance, technology, fraud and advisory services. Internal gra o tron chomikuj audit is always to ensure building
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