To ensure that the audit work achieves its objectives and is carried out according to the set plan and program, the audit process must aim to fulfill the following requirements:
- The audit must comply with legal regulations, be objective and honest in assessing, confirming and preparing audit reports;
- Must consider and collect all necessary relevant evidence.
to the audits;
- Synthesize, record and report audit results; promptly adjust audit plans, content and progress to achieve good results;
- Through minutes, audit reports.
Bao Viet Commercial Joint Stock Bank has not mentioned the auditing methods and techniques that the internal auditors can apply, how to record audit logs, manage paper documents, organize audit meetings, etc. In particular, Bao Viet Commercial Joint Stock Bank has not yet provided specific auditing techniques to collect evidence for each subject and audit unit to guide auditors. In addition, a very important task in the step of implementing the audit plan is to conduct a field survey and reassess risks to determine the appropriate scope of the audit, which is also not regulated by Bao Viet Commercial Joint Stock Bank.
On actual implementation:
- Bao Viet Commercial Joint Stock Bank has developed a plan and organized audits by topic groups and comprehensive unit audits;
- In each audit, the Audit Team consists of the Head of the Team, Deputy Head of the Team (if any) and members. The number of members of the Audit Team is specified in the audit decision, based on the requirements and content of the audit.
- Currently, Bao Viet Commercial Joint Stock Bank has not issued the Auditing Procedure, Auditing Handbook, and Code of Ethics for internal auditing;
in accordance with the spirit of Circular 44/2011/TT-NHNN and Circular 13/2018/TT-NHNN as well as the requirements of International Standards for the Professional Practice of Internal Auditing No. 1000 and the principles recommended by the Basel II Committee.
- Currently, the bank does not have specialized software to manage work cycles or analyze data specifically for internal audit. All information to be collected will be extracted from the bank's MIS and T24 software.
Table 3.5: Evaluation of internal audit implementation at Bao Viet Bank
Conduct audits
Answer options (%) | ||||
Completely wrong | Mostly wrong | Most of correct | Completely correct | |
The Internal Audit Department has a detailed audit plan for each audit. | 0.0% | 0.0% | 0.0% | 100.0% |
The Internal Audit Department has an audit program for each business process. service | 100.0% | 0.0% | 0.0% | 0.0% |
The KTNB department often applies "risk-oriented" audit approach | 12.5% | 87.5% | 0.0% | 0.0% |
The Internal Audit Department often applies compliance auditing methods. | 0.0% | 12.5% | 75.0% | 12.5% |
Does the Internal Audit Department use auditing software for auditing activities? | 100.0% | 0.0% | 0.0% | 0.0% |
Your IT skills you are very good | 25.0% | 62.5% | 12.5% | 0.0% |
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Awareness of Internal Audit of Teaching Activities in Schools -
Theoretical Basis of School Internal Audit Management
“Source: Students compiled through survey forms”
When interviewed about detailed audit planning, all opinions agreed that before each audit there is a plan, however there is no detailed audit program for each part of each audit (100%). Before the audit, the Internal Audit Department always surveys the audited unit about the position, importance of the unit or audited business, the scale of the business, the level of stability and completion of the business.
During the auditing process, choosing the audit method is also very important, because this helps overcome limitations in terms of time, number of employees, costs, etc. However, most internal auditors believe that they still conduct individual audits, that is, audit each contract and transaction specifically to conclude whether the accounting data is truthful or not, or if they audit the system, it is only at the level of reviewing each file to see if it complies with the correct procedures or not, but it is quite limited when performing system analysis to evaluate the effectiveness and efficiency of the internal control system. Therefore, the work results of the two departments of auditing and internal control inspection have many similarities, sometimes they are even grouped together, without seeing clear differences.
Step 3: Prepare Audit Report
In the past, the Internal Audit Department has discovered, directed the correction and overcoming of many shortcomings and violations in management, credit, treasury, accounting... This audit report preparation stage will be meaningless if the previous steps are not performed professionally because there will be no materials to prepare an audit report with honest and reasonable opinions. Conducting a survey using a questionnaire, the researcher obtained the following results:
One is : Not yet analyzed the cause of the violation.
Table 3.6: Evaluation of internal audit reporting at Bao Viet Commercial Joint Stock Bank
Audit reporting
Answer options (%) | ||||
Completely wrong | Mostly wrong | Most of correct | Completely correct | |
In the reports there is analysis causes of errors | 0.0% | 100.0% | 0.0% | 0.0% |
Audit report in writing relevant and complete | 0.0% | 0.0% | 0.0% | 100.0% |
The report recommends measures to correct and overcome errors and Violation handling | 0.0% | 0.0% | 0.0% | 100.0% |
The content of the detailed proposal is specific. body | 0.0% | 100.0% | 0.0% | 0.0% |
“Source: Students compiled through survey forms”
Audit reporting is a very important step in the audit, students have found out whether the auditors have analyzed the causes of the violations and risks or not. The results received were 100% that they did not fully understand the causes of those violations.
Second : Audit reports often focus mainly on violations.
Table 3.7: Main recommendations
Problems
Answer options (%) | ||||
Completely wrong | Mostly wrong | Most of correct | Completely correct | |
Violations related to compliance with the internal regulations | 0.0% | 0.0% | 100.0% | 0.0% |
Violations related to compliance with the provisions of law | 0.0% | 100.0% | 0.0% | 0.0% |
Evaluate the system of control procedures established in each activity, detect the underlying causes of systematic | 100.0% | 0.0% | 0.0% | 0.0% |
“Source: Students compiled through survey forms”
Thus, the audit report focuses on pointing out specific violations, assessing the truthfulness of 100% information or pointing out violations that are mostly related to compliance with internal regulations and 100% of the majority of violations are not related to compliance with legal regulations. The very important part is assessing the internal control system, risk management system, and governance framework of the bank, which are still quite limited 100%.
Third: The attitude of audited units is often not easy to accept the conclusions of the Internal Audit.
When issuing these reports, the auditor will send them to the audited unit to discuss the results of the work. Most of the audited units are satisfied, but for the rest, the auditor often receives reactions from the business unit, in many cases the unit has to reluctantly accept. This is not too difficult to understand because the business units
Often chasing profit and sales targets, they have to sacrifice compliance with laws, regulations, and procedures. Therefore, when auditors discover and request acceptance of findings, units often do not easily accept.
Specific evidence for the conclusions on the current status of audit implementation through some contents of the audit report "Hanoi Branch" in 2016 is as follows:
Issue 2: Capital management after disbursement and periodic customer checks
Audit opinion
According to Article 6 of Regulation 1587/2010/QD-TGĐ on Loan Management after disbursement:
- Within 15 days for short-term loans and 30 days for medium and long-term loans from the disbursement date, the Customer Relations Department must check the purpose of the loan.
- Periodic check every 3 months or other periodic checks according to credit approval, for loans under the limit and medium and long-term loans where the customer has a normal credit relationship, regular and on-time debt repayment.
- Periodic check every 2 months for customers with debt from group 2 or higher.
- Periodic check at least once a month for customers with debt from group 3 or higher.
- Periodically at least every 6 months or periodically according to credit approval, the Customer Relations Department must prepare a periodic credit report to comment and evaluate the production and business situation, finance and debt repayment ability for customers with outstanding debt of 1 billion VND or more.
The audit team found that the business unit had not fully complied with the above regulations on post-disbursement loan management. Only a few credit files had Customer Inspection Minutes, but they did not comply with the above periodic regulations.
Business Unit's opinion:
Agree Disagree
Additional comments
Auditor's recommendation:
Propose that the Director of the Department of Science and Technology and the Head of the Department of Science and Technology urge and remind the QHKH Specialists to seriously implement capital management after disbursement.
Issue 3: Regarding revaluation of real estate collateral
Audit opinion
According to Article 26, Regulation 1585/2010/QD-TGĐ on Appraisal of Real Estate Assets, every 12 months after the most recent valuation date, the business entity must re-evaluate the real estate.
The audit team found that the collateral assets at the branch were mostly real estate, however the branch “had not conducted a full valuation” as per the above schedule. Business Unit’s opinion:
Agree Disagree
Additional comments
Auditor's recommendation:
Request the Director of the Business Unit and the Head of the Science and Technology Department to immediately direct the re-evaluation of real estate in accordance with regulations.
Step 4: Post-audit monitoring phase:
Conducting a questionnaire survey, students obtained the following results:
Table 3.8: Current status of monitoring recommendations
Monitoring of recommendations
Implementation level (%) | ||||
Are not ever | Rare When | Please occasionally | Often through | |
Yes, immediately after the end of the inspection period. maths | 0.0% | 0.0% | 62.5% | 37.5% |
Yes, on next audit. | 100.0% | 0.0% | 0.0% | 0.0% |
Yes, next year | 100.0% | 0.0% | 0.0% | 0.0% |
Do not track | 100.0% | 0.0% | 0.0% | 0.0% |
“Source: Students compiled through survey forms”
Thus, the Audit Department regularly monitors its recommendations from the previous year to the unit to see the progress of handling and correcting violations. The implementation of the unit's recommendations is not immediate, but not too late, usually taking place within 1 year from the date the audit report is signed and accepted.
3.3. Factors affecting the internal audit status at Bao Viet Commercial Joint Stock Bank
Students conducted a survey to collect opinions from a number of auditors and members of the Board of Supervisors at Bao Viet Commercial Joint Stock Bank with the following process:
Step 1 : Design survey questions
Through the process of research and analysis from chapter 2, the factors affecting internal audit include 3 objective factors and 4 subjective factors. The purpose of the survey is to collect the opinions of the surveyed subjects about the level of influence of the factors on internal audit. The set of questions related to the influencing factors includes 17 questions with 7 main factors divided into 2 groups: