Improvement of Internal Audit in Bank by New Regulations

Abstract

In order to operate safely an effectively, banks need effective measures. The most important measure
is that the banks have to establish an effective internal control system (ICS) because ICS is vital element in the
banking management model. Circular No. 44/2011/TT-NHNN was issued to help banks set up ICS and internal
audit. But banks met difficuties in establishing ICS according to Circular No. 44. In order to fill the holes in
ICS of banks, the state banks issued Circular No.13/2018/TT-NHNN to solve difficulties in establishing ICS for
banks. The provisions in Circular No.13 are very specific and clear, especially as they are close to international
practices on building ICS; especially regulations relating to Internal Audit.