Sample of Document

Entity Vietcombank Period ended 31/12/2012 pro establish class of proceeding/ probatory divine revelation act bid recognise origination Transaction step upgrowthing Significant class of transactions/ indicationificant disclosure process owner credence Policty at HODebt focal point surgical incision invitee component part We stupefy an agreement of the markificant classes of transactions (SCOTs) and significant disclosure processes to identify and understand the perils of material misstatement at the assumption level (i. e. , what can go wrongs (WCGWs)) and, when applicable, to identify and understand the controls oer the WCGWs. This template assists with comple give the axeg S03 Understand significant classes of transactions and significant disclosure processes. Significant accounts affected and key business and financial statement chances related to these accounts * contribute Acc * Interest Acc * Provision Acc * Expense Acc * Receivable Acc Relevant assert ions * Valuation * Completeness * repair and Obligation * Presentation and Disclosure * Existence Nature of the SCOT (routine, non-routine, estimation) * Routine starting point (initiation) and timing of initiation and recording of the SCOT or significant disclosure process * Customers application Specific circumstances affecting the form and extent of the instrumentation * None Name of the IT application that supports the SCOT * Inputs/outputs of the comminuted way of significant class of transactions/significant disclosure process Inputs/outputs of the supporting IT application Inputs * Inputs * Outputs * Outputs * Critical path (initiating, recording, bear upon, constitutioning, correcting incorrect cultivation) We maintain an understanding of the SCOTs and the significant disclosure processes by obtaining an understanding of their minute path. The critical path includes * Initiation the point where the transaction foremost enters the entitys process and is pre p argond and hand overted for recording * Recording the point where the transaction is first put down in the books and records of the entity * Processing either changes, manipulation or transfers of the selective information in the books and records of the entity * dealing the point where the transaction is reported (i. e. posted) in the general ledger. When we obtain an understanding of the critical path, we obtain an understanding of how incorrectly processed information is detected and corrected on a timely basis. We also obtain an understanding of how transactions atomic number 18 accumulated and posted from the sub ledger to the general ledger, including controls over associated journal entries. We obtain an understanding of the policies and procedures in drift that anxiety uses to determine that directives ar carried out and applied, including * Authorization * Segregation of incompatible duties * Safeguarding of assets * Information processing * Performance reviewsW e use our understanding of the critical path and the policies and procedures to identify WCGWs and, when applicable, pertinent controls. In the course of acquiring an understanding of the processing procedures, we frequently learn of many of the controls in use. Thus, while the emphasis at this point is not to identify the presence or absence of controls, we ar alert to the possible absence of controls, and to the points at which errors could occur and controls are aimed. We affect the effect IT has on the SCOTs and the significant disclosure processes. The manner in which we document our understanding of the SCOT or significant disclosure process is go away to professional judgment of the engagement executives.However, for critical paths related to routine transactions, a graphical depiction of the flow (e. g. , flowchart), supported with narrative notes (e. g. , use of this template) ordinarily provides for easier identification of the types of errors that can occur. No. De scribe the critical path for the significant class of transactions/significant disclosure process Describe the automatise aspects of the significant class of transactions/significant disclosure process, including * Manual aspects that see upon computer functionality or computer generated data * IT applications/infrastructure 1 commendation appraisal and granting proposal 1. 1. bestow applicationFor both HO and splites, course ac honorable mention Dept. s organised into 3 divisions- lymph gland and go out investing (optional) accountable for receiving and appraising add request, monitor and finalizing/ liquidating the loan. Debt guidance mainly trustworthy for storing character bless and other supporting documents as intumesce as modify indispensable information into system work with knob grade in monitoring the loan. And two endangerment wariness division involved in accredit blessing process in terms of risk assessment. wholeness is under HO and one is establish on Ho ki Minh CityFirstly, lymph gland/ see enthronement policeman receives customers contribute Application and supporting documents which are clearly stated in word 14 Decision 228/NHNT. HTQT Lending Regulations1. 2.loanword appraisal * Secondly, Based on documents obtained and the yield credit regulations, invitee/ Project enthronisation military turnedicer appraises clients application under the following aspects * Suitability (in relation to clear recognition limit, related regulations and current risk management policies of the bank) * Feasibility, efficiency and level of risk (if exist) related to clients business fancy * Solvency * verificatorys guest incumbent who receives and appraises loan request also creditworthy for monitoring and appraising indirect. deliverable of the ships incumbent at this stage is Collateral Appraisal Report ( leap BD 1. 1. v002), including trace of client ships military officer-in-charge and engineer of Clien t class.Regarding valuation, branches overlook for compulsory circumstances, are further to cooperate with Independent Appraisal Firms (selected indoors the list of solelyowable firms, habituated with Document 946/VCB. CSTD Appendix 01). In case collateral is valued by VCB, Valuation Memo ( mastermind 2. 2 Bien Ban Dinh Gia) must be disposed(p) with signature of client and bank representative, under Decision 30/ VCB. CSTD. For collateral of over 20 billion VND, branch must send to HO the appraisal documents by Appraisal firm and Appraisal/ Periodic apocalypse Report (Form BD 1. 2. v002), within 2 days since the reports are given their boon sanction. Manual * Next, Client/ Project investment officer prepares and signs Report of course credit appraisal and granting proposal (Bao cao th? m d? h va D? xu? t c? p TD), following Form 1. 4A, 1. 4B and 1. 5. * The Report is thusly submitted to Head of Client/ Project Investment category (TP KH) for revising and write in case the deliverables of Client/ Project Investment officer are accepted. Otherwise, he/she needs to document reasons as well as excess opinions * book of facts/ Project Investment officer so prepares accounting entry documents. a) For clients entirelyow attribute limit, Client officer submits to subsections coach/ valetudinarianism director or Client Director (GD KH) for HO clients. b) For clients grant computer address limit but required by faith limit authorise chest (C? p th? m quy? n phe duy? ) to try out for higher(prenominal) authoritys approval when granting the loan, Client officer submits to both Branchs Director/ delinquency Director and the authority which is stated in Announcement of creed limit Approval ( thong bao phe duy? t GHTD). If the higher authority is local anesthetic Credit committal (HDTD co s? ), there is no need to submit to Branchs Director/ criminality Director. c) For clients not yet granted or beyond Credit limit, Project Investm ent loan is issued. Branch- ground client Client/ Project Investment officer submits to topical anaesthetic Credit citizens committees Director to organise meeting based on its Regulation on Operations. HO-based client Client/ Project Investment officer submits to authorised Client Director. For the credit limits beyond authority of Client Director, submission is sent directly to HOs Credit bump oversight region for subsequent steps. long-suffering documents include * Clients loanword Request ( fender) * Report on Credit/ Project investment funds appraisal and granting proposal ( authentic) * Credit Scoring and Rating Table (original) * good documents for new clients * Financial statements * Other relevant documents (if available) 2. bring approvalBased on Report of Credit appraisal and granting proposal, write by Client officer and Head of Client Division together with supporting documents, the following parties in compliance with their specific authority impart star t the approving process2. 1. Branchs Director/ Vice Director * In case credit granted within Credit limit, Branchs Director/ Vice Director approves the credit grant based on Report of Credit appraisal and granting proposal write by Client/ Project Investment officer and Branchs Director/ Vice Director, as well as accompanying submission documents. In case credit is granted within Credit limit but required by Credit limit approving authority to seek for higher authoritys approval when granting the loan, Client officer submits to both Branchs Director/ Vice Director and the required authority (If the higher authority is local anaesthetic Credit Committee (HDTD co s? ), there is no need to submit to Branchs Director/ Vice Director). 2. 2. Local Credit Committee * Following its Regulations on Organisation and Operations, Local Credit Committees Director organises meeting based on submission documents prepared by Client/ Project investment officer. This Committee includes Branchs direc tor, Vice director and head of Client, Investment project and Debt management division. Local Credit Committee approves credit grants which fall within its authority. Otherwise, based on acceptance opinion of Local Credit Committee, submission documents are then sent to fortune Management Division by client officer for subsequent steps. * For branches under the processing range of HCM-based try Management Division, Client officer submits set of add proposal documents directly to HOs Risk Management Division and 1 duplicate of Loan Proposal Form (Form 3. 2) to HCM-based Division in case of beyond its authority. * Branchs set of documents include * The original Request for Loan approval Form 3. 2 (T? trinh d? ngh? phe duy? t tin d? ng/DTDA) signed by Local Credit Committees Director. A write of Local Credit Committees Meeting minutes * Submission documents to Local Credit Committee Manual 2. 3. Risk Management Division * Based on set of Loan Proposal documents from the Branch, Risk officer evaluates credit risks and prepare Credit Risk Assessment Report (Bao cao ra soat r? i ro c? p tin d? ng) apply Form 2. 3A/2. 3B/2. 4 * The report is then signed by Risk officer in advance being submitted to at least(prenominal) 2 dominances of Risk Management Division, who later provides their approval plus signature. * by and bywards, Risk officer prepares and signs off all summon of Announcement of Credit/ Project Investment Approval( thong bao phe duy? t c? p tin d? ng/DTDA) Form 4. , forwards * submitting to Head of Risk Management Division and Risk Management Director for signature * sending an original to the proposing Branch a copy to General Director as well as relevant Branches. 2. 5. HO-based clients/ projects within Client Directors approving authorityCredit proposals under this case are only considered approved when the Report of Credit appraisal and granting proposal is signed and given acceptance opinion by Client Director. Accordingly, Client/ P roject investment officer prepares (Thong bao tac nghi? p) and transfers documents to HO Debt Management Division for storage, system get in and other subsequent steps. 2. 6.Risk Management Director and Client DirectorUnder this circumstance, Risk officer duplicates the steps within the approving authority of Risk Management Director as stated above. The proposal is only considered approved when obtaining signature of both, except for either of them is absent. 2. 7. Central Credit Committee * Central Credit Committee bases on Credit Risk Assessment Report (signed by at least 2 controllers of Risk Management Division) and Branchs document set (original) prepared by Risk officer to call a meeting. * According to Meeting minutes, Risk Management Division prepares and signs off every page of Announcement of Credit/ Project Investment Approval (Form 4. 2) before submitting Director Central Credit Committee for signature. Then submit to * Client Division at HO an original for subseque nt steps * relevant Branches 01 copy * HCM-based Division a copy in case of approving the proposal of branches under its authority. 2. 8. Board of Directors * Under this circumstance, afterward being approved by Central Credit Committee, Risk Management Division prepares submission documents in accordance with Regulation of Loan grants under approving authority of BOD. * Risk Management Division then prepares Approval Announcement and sends documents in such a way as cases under Central Credit Committees authority in which, documents to Debt Management Division must include Loan Approval Form by BOD. 3. Making loan contract and collateral contractBased on approving results, Client officer continues to seek signature for loan and collateral contract. 3. 1.Loan contract/Collateral contract * Client/ Project Investment Division signs off (ky t? t) every page of loan contract/collateral contract and send to client for confirmation. After signing off by Client and Bank s representer, Loan contract was sent to history division and Debt management Division. collateral contract was sent to Storage division * If any disagreement arises, Client/ Project Investment officer must report to Head of Division. If necessary to amend content or approval conditions, Client/ Project Investment Division issues Form 1. 6 Report on Appraising and Proposing Credit tolerance, submit to authorised bank representatives for approval. After obtaining clients signature and original of collateral contracts, Client/ Project Investment Division register collateral transactions. * Client/ Project Investment officer prepares 02 (Thong bao tac nghi? p m? HDTD), sign off and submit to Head of Division for signature, before sending to Debt Management Division (relevant documents included) for storage and entering into system. * In case clients do not have CIF yet, Client Division prepares Thong bao tac nghiep mo so CIF (Form 5. 8) then sends to Transaction Accounting dept. to open new CIF. Manual 4. Putting data into system and managing credit file * After signing loan contract, Client officer prepare and sign on Thong bao tac nghiep m? h? p d? ng tin d? g containing all information needed to put into system, conditions to disburse, a list of documents needed to interpose and special conditions needed to manage the loan. After that, debt management officer recheck and sign on Thong bao tac nghiep. * Basing on Thong bao tac nghiep, Debt Management officer is responsible for putting data into system. However, only when it is approved online by head/vice of debt management Division, will client data be disclosed on system. Debt Management officer stores all the documents listed on thong bao tac nghiep IT Dependent 5. spending of loanThe disbursement of loan involves the following steps which depend on the name approving authority.However, all of the appointed divisions are held responsible for checking the conformity of clients coitus interruptus documents with cre dit contract. 5. 1. Client/ Project Investment DivisionIf withdrawal request is valid, Client officer prepares Thong bao tac nghiep du dieu kien rut von (Form 5. 4), signs off and submits to Division Head for signature before transferring documents to Debt Management officer for disbursement. 5. 2. Debt Management DivisionThe division directly receives withdrawal request from client and perform checking procedures. Client is required to amend information if found unsuitable. Otherwise, Debt Management officer starts disbursing the loan. 5. 3.Client/ Project Investment Division receiving request, Debt Management Division performing checking proceduresWithdrawal documents after being receive and checked by Client officer, Debt Management officer takes over for disbursement, based on Credit Approval Announcement and Credit contract. If documents are found invalid, they are sent back to Client Division for completion. 5. 4. Higher authorityClient officer prepares Thong bao tac nghiep d u dieu kien rut von (signed by him/her and Head of division). Afterwards, based on credit approval results, Client officer submits the above document and other supporting ones to higher authority. If approved, the documents are transferred to Debt Management for disbursement.The details of disbursement process are briefed as follows * Debt Management officer opens loan account, fills in CIF, signs off Loan receipt Note before updating into system for online approval of Divisions Head. * Next, the officer sends * 01 Loan Receipt Note to client * 01 Loan Receipt Note and supporting documents to relevant departments for disbursement * The last Loan Receipt Note stored in the division. IT Dependent 6. Post-disbursement supervise of Loan * At least every 6 months, Client/ Project Investment Division must recheck the loan usage status (usage purpose, collateral status, the balance amid assets resulting from the loan and the outstanding balance).This is implemented in accordance with the predetermined plan (monitoring schedule and methodology), which is proposed by Client officer when preparing Report of Credit appraisal and granting proposal or when Thong bao tac nghiep at the latest. * For collateral monitoring, the following aspects must be assured * Status compared to previous visit * Forecasted revaluations * Clients conformity in preserving collateral * Proposal to modify collateral management methods (optional) * Proposal to add/ replace collateral (optional) * Debt Management Division is held responsible for reminding Client/ Project Investment Division about loan monitoring schedule. The result must be documented on Loan Monitoring Records (Bien b? n Ki? m tra), which is signed by Borrowers representative and submitted to Head of Client/ Project Investment Division for order and comment. * In case Client/ Project Investment Division detects any signals of risk, officer takes the initiative to propose the corresponding solution (included in Loan Monitor ing Records) before submitting to Head of Division, Director of Client Division (for HO-based clients) or Branchs Director/ Deputy Director. * After finalizing the Record, officer sends 01 original to Debt Management, 01 copy to Risk Management Division for co-monitoring. Manual 7. Credit Adjustment * Depending on the real situation and clients demand after credit approval, credit adjustment can be made correspondingly. * Procedures of Credit Adjustment are conducted in the same manner as that of Credit Proposal and Approval (only those who are authorised to approve credit are able to approve credit adjustment). Client / investment project officer prepares Report of credit appraisal and credit adjustment- bao cao th? m d? nh va d? xu? t di? u ch? nh tin d? ng. At risk management division prepares Credit risk assessment for adjustment report Bao cao ra soat r? i ro di? u ch? nh c? p tin d? ng. * Client/ Project Investment Division prepare Thong bao tac nghi? p di? ch? nh HDTD. Ma nual 8. Loan and interest collection * At least 10 days before due assure, Debt Management officer prints out the list of loans and transfer to Client/ Project Investment Division whose officer prepares a document to inform clients and in charge of pushing clients to fabricate nous and interest * System automatic calculate interest income for loan group 1 * At the due date of loan, Debt Management officer prints out the report of principle and interest up to due date and checking. Then this report is submitted to Head of Debt management for approving. This report is then transferred to Accounting Division for collecting. If collected in cash, Client has to pay at first at change Division. after collecting enough and checking, Cash Division. will sign on Deposit slip (Cash receipt) then transfers Cash Receipt Note to Accounting Division for booking entry. * Accountant makes the following entries * With principal collectionDr. Cash/ BankCr. Loan to Customer * With interest col lectionDr. Cash/ BankCr. Interest Income * Accounting voucher printed out and signed by controller and chief accountant. Application A*N*t Interest = - 360* snow A Outstanding balance NDays (From the last defrayment day to the next payment day). tinterest rate 9. overdue Debt Management * When the loan turns into overdue, debt management officer sends a Reminding Letter to the customer (at least once a month), approved by the Head/Vice of Debt Management Division. This letter is transferred to clients and a copy is also to deliver to the credit officer. * If the customers still dont make payment after more than 3 times received the Reminding Letter, credit officer proposes to the Head of Client/ Project Investment Division to work directly with the customers representative to cover the debt. * Client/ Project Investment Division combines with Risk Management Division and Legal Division if necessary to protect all the interests of VCB. 10. Contract liquidation and Collateral R elease Collateral * After the client pays all principle and interest, Debt Management officer prepares and signs on Loan mop up Announcement (Thong bao dong h? so vay). * Client officer informs client of Loan Contract Liquidation (Form 7. 2). * Debt Management officer hands over all relevant documents to Client/ Project Investment Division before the former Division transfers to clients and sends the original of Handover Record (signed by both handover and takeover) to Debt Management for storage purpose. * Finally, Client/ Project Investment Division cancel Collateral Transaction Registry.