The State Bank has issued Circular No. 24/2021/TT-NHNN providing for an independent audit of credit institutions and foreign bank branches (“Circular 24”), whereby Circular 24 will come into effect on April 15, 2022.

The main contents of Circular 24 related to independent audit contents are as follows:

Firstly: Regarding the independent audit of financial statements of credit institutions and foreign bank branches, the following audit contents must be included:
a) Balance sheet;
b) Report on business results;
c) Cash flow statement;
d) Notes to the financial statements.

Secondly: Regarding the independent audit of the operation of the internal control system of the credit institution or foreign bank’s branch, it must include at least the following contents:
a) Auditing the internal control system of the credit institution, and foreign bank branch (including internal mechanisms, policies, processes, and regulations) in compliance with current laws. and regulations of the State Bank on the internal control system of credit institutions and foreign bank branches. For the contents of the internal control system that have been audited for compliance without any change, such content is not required to be re-audited;
b) Auditing the operation of the internal control system for the preparation and presentation of financial statements;
c) In addition to the audit contents specified at Points a and b of this Clause, the commercial bank or foreign bank branch must audit the operation of the internal control system for the content of the internal assessment on the sufficient capital level of commercial banks and foreign bank branches in accordance with the State Bank’s regulations on the internal control system.

Circular 24 takes effect from April 15, 2022.

* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.

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