“Proposed Regulations on Independent Auditing for Commercial Banks”

The draft circular provides regulations on independent auditing of financial statements and assurance services for the internal control system in the preparation and presentation of financial statements for commercial banks, non-bank credit institutions, microfinance institutions, and branches of foreign banks.

According to the draft, credit institutions and branches of foreign banks must annually select an independent audit organization as prescribed in this Circular to conduct independent audits of financial statements and assurance services for the internal control system in the preparation and presentation of financial statements.

The audit of semi-annual financial statements, final settlement reports of completed projects, and other audit tasks of credit institutions and branches of foreign banks (if any) shall be performed in accordance with relevant legal regulations.

The State Bank of Vietnam encourages credit institutions and branches of foreign banks to use independent audit services to audit restrictions to ensure safe operations.

Timing and Authority for Selecting an Independent Audit Organization

Before the end of the financial year, credit institutions and branches of foreign banks must select an independent audit organization as prescribed in this Circular to audit the financial statements and assess the internal control system for the preparation and presentation of financial statements for the next financial year.

The Members’ Council decides on the selection of an independent audit organization for a limited liability company credit institution.

The General Meeting of Shareholders decides on the selection of an independent audit organization for a joint-stock credit institution.

The General Director (Director) decides on the selection of an independent audit organization for a branch of a foreign bank.

Scope of Independent Audit

The independent audit of financial statements of credit institutions and branches of foreign banks includes:

– Balance Sheet

– Income Statement

– Cash Flow Statement

– Notes to the Financial Statements

Assurance services for the internal control system in the preparation and presentation of financial statements of credit institutions and branches of foreign banks.