Return back

  

  

Appendix 

to Resolution No. 2017-P-12/25-2-(RLA) of the National Bank of the Kyrgyz Republic Board as of 

June 15, 2017  

 

REGULATION 

on Minimum Requirements to the External Audit of Banks and Other Non-Banking Financial and Credit Institutions Licensed by the National Bank of the Kyrgyz Republic 

 

1. General Provisions 

1. This Regulation on minimum requirements to the external audit of banks and other non-banking financial and credit institutions licensed by the National Bank of the Kyrgyz Republic (hereinafter referred to as Regulation) shall establish minimum requirements (criteria) for the audit of banks and micro-financial companies, including those operating under the Principles of Islamic Banking and Finance or having an “Islamic Window”, and other non-banking financial and credit institutions, including “Financial Company of Credit Unions” OJSC that are licensed and regulated by the National Bank of the Kyrgyz Republic, as well as the State Development Bank of the Kyrgyz Republic (hereinafter referred to as bank). 

2. The purpose of this Regulation is an effective organization of the banks activity on delivery of services of the audit organizations, implementation of their procedures for their selection, keeping the banks auditors independent in providing audit services and preventing conflicts of interest. 

3. The following definitions shall be used for the purposes of this Regulation: 

External audit of the bank is an independent audit of the banks activities in order to express opinion on the accuracy of financial statements in all material aspects according to the international financial statements standards and other information in conformity with the legislation of the Kyrgyz Republic. 

External auditor of the bank is an independent audit organization (its auditors, among others, included in the audit group) established in accordance with the requirements of the legislation of the Kyrgyz Republic. 

Requirements to the audit shall include the requirements the bank shall put to the audit organization, its staff, involved auditors (individuals and legal entities), audit (at any stage), audit conclusion in accordance with the legislation of the Kyrgyz Republic and the present Regulation. 

External audit of information systems is an independent audit of technical regulations and requirements of the bank by the external auditor allowing ensuring the protection of information and the banking systems themselves from unauthorized intervention and other threats (risks). 

Conflict of interests is a situation, in which the interest of the external auditor of the bank can influence on his/her opinion about the accuracy of financial statements of the bank. 

Independence of the external audit of the bank is the capability of the external auditor of the bank to act independently despite of somebodys influence on the results of his/her conclusions, findings and in the conditions excluding any outside influence on the expression of opinion by the external auditor of the bank. 

The terms - banks officials, affiliates and bank-related parties, subsidiary of the bank or a bank holding company, Islamic Bank having an “Islamic Window”, Principles of Islamic Banking and Finance, Shariah Council shall have the meanings according to the legislation of the Kyrgyz Republic. 

2. Requirements to External Audit of the Banks 

4. The banks activities shall be subject to the annual external audit according to the international audit standards recognized in the Kyrgyz Republic, as well as in the order that has been established by the legislation of the Kyrgyz Republic and in accordance with the present Regulation. 

5. The audit standards for the Islamic Financial Institutions developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOFI) shall be applied in the relations carried out in accordance with the Principles of Islamic Banking and Finance. 

6. The external auditor of the bank shall hold consultations with the employees of the banks internal audit service to get the information on the banks internal audit system, and the information on the problems of the bank identified by the banks internal audit service in order to identify and assess the risks of material misstatement both from fraud and because of a mistake. The external auditor of the bank shall have access to all materials and reports of the banks internal audit service. 

7. The bank shall develop internal regulations on the involvement of the external auditor approved by the Board of Directors of the bank that do not contradict the requirements of the Regulation, including the definition of: 

- a list of criteria for the selection of external auditor of the bank; 

- terms of employment of external auditor; 

- order and terms of payment for the services of the audit organization for the audit of financial statements, as well as the delivery of non-audit services to the bank and organizations controlled by the bank. 

8. Selection of an audit organization shall be carried out by the bank independently complying the requirements of the legislation of the Kyrgyz Republic. 

9. It is necessary to consider the proposals of at least three audit organizations to select the most acceptable audit organization from the point of view of quality of the external audit of the bank. While appointing the external auditor by the bank, the selection shall be determined not only on the side of cost minimization for the external auditors services. 

A permanent key composition of the auditors conducting external audit of the bank shall be during the period of the external audit, for exception of the changes in a key composition of the auditors agreed between the bank and the external auditor, which are approved by the Audit Committee of the bank. 

10. The Board of Directors of the bank shall select audit organizations and candidates for auditors to submit them for consideration of the General Shareholders Meeting. The bank shall notify the National Bank on the audit organization and the candidates for auditors not later than ninety working days from the date, on which the General Shareholders Meeting was held. The National Bank shall have the right to reject the audit organization and the candidates for auditors as the ones failing to meet the established requirements for the audit of the banks, and shall notify the bank to this effect not later than ten working days from the date, on which the notification indicating the requirements the audit organization, the candidates for auditors fail to meet, was received. 

11. Selection of the external auditor of the bank, conduct of negotiations with the audit organization regarding remuneration, terms, conditions to conduct the external audit of the bank, and the submission of an external auditor of the bank for consideration of the General Shareholders Meeting of the bank shall be an exclusive competence of the Board of Directors of the bank. 

The Requirements specified in chapter 5, and in the Agreement for the Audit of Information Systems, requirements specified in chapter 6, respectively, of the present Regulation shall be included while concluding the Agreement for the Audit of Financial Statements. 

12. The Board of Directors of the bank shall require the audit organization to provide certificates (evidences) of the availability of the terms specified in Clause 18 of the present Regulation while selecting an external auditor of the bank, and: 

a) a list of financial and credit and other institutions the external audit of which was conducted by this audit organization for the last three years; 

b) proposals including a planned audit scope, period, which will be studied in the course of audit, schedule of external audit of the bank, as well as the reports to be prepared. 

13. The bank shall notify the National Bank of the following in writing within three working days: 

a) on selection (appointment) of the external auditor of the bank or a banking group after the General Shareholders Meeting of the bank takes a decision. 

This notification shall indicate the availability of a license (number of a license, date of receipt, period of validity, issuing authority), legal address, including telephone numbers of the audit organization, full name of the head of the audit organization; 

b) on change of the external auditor of the banks and its reasons, if the change of the external auditor of the bank has occurred during the conduct of the external audit of the bank. 

3. Requirements to the External Audit of the Bank 

14. The external auditor of the bank may be only an audit organization having a relevant license for the right to conduct audit activity of the banks within the territory of the Kyrgyz Republic, and meeting the requirements of this Regulation. 

15. The external auditor of the bank shall comply with the restrictions that have been established by the legislation of the Kyrgyz Republic and regulatory legal acts of the National Bank while conducting the external audit of the bank. 

16. The external auditor of the bank shall be independent, unprejudiced, avoid the situations, which suggest the conflict of interests. 

17. The external auditor shall be independent of the bank that shall mean its capability to act independently of somebodys influence on the results of the audit conclusion, findings and in the conditions excluding any outside influence on the expression of opinion by the external auditor. The agreement for external audit shall reflect the statement of the audit organization that the audit organization itself or any its auditor or the other employee included in the composition of the audit shall not have any interest, shall be independent and shall not be bound up with any relations with the bank and its officials.  

18. The audit organization or auditors participating in the banks audit or the involved auditors participating in the banks audit shall not be independent of the bank if for the last two years they are or were: 

1) the persons who directly or indirectly have a significant equity participation of the bank or its affiliates; 

2) affiliates of the bank or its affiliates; 

3) the persons, which deliver the other services (conduct of special audits, consultation services, internal audit services) to the bank or its affiliates; 

4) employee of the bank or its affiliates; 

5) in the other cases provided for by the legislation of the Kyrgyz Republic. 

19. The bank shall not involve the audit organization as an external audit of the bank if there are confirmed circumstances calling in question the independence of the external audit of the bank, including the situations when the audit organization or any its auditors to the point are a bank-related party in accordance with the banking legislation. The audit organization selected for the audit of the bank or a banking group shall: 

- have a relevant license for the right to conduct the audit activities within the territory of the Kyrgyz Republic, and shall have the experience of the audit activities of at least three years; 

- be independent of the bank; 

- have the experience of audit of commercial banks and financial and credit institutions in accordance with the international audit standards and international financial statements standards, as well as in accordance with the standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions; 

- have staff or involved auditors in the number sufficient for the qualitative and timely performance of the assigned tasks. 

20. The Head of the audit of the financial statements shall have: 

- qualification in accordance with the requirements of the audit legislation or international qualification; 

- three-years experience of the audit of commercial banks and financial and credit institutions; 

- experience of audit in the financial and credit institutions in accordance with the international audit standards and international financial statements standards; 

- knowledge in the field of banking and banking legislation of the Kyrgyz Republic; 

- knowledge of the AAOFI standards and three-years experience of the audit of banks, financial and credit institutions operating under the Principles of Islamic Banking and Finance - for the audit of the bank delivering services under the Principles of Islamic Banking and Finance. 

21. The Head of the audit of information systems to conduct the audit of information systems shall have: 

- qualification certificate (CISA, CISM and etc.); 

- the experience of the audit of information systems of the financial and credit institutions. 

22. External audit of the bank cannot be conducted by the same audit organization for more than five years in a row. The rotation term shall be determined on the basis of five sequential years to the date, when the General Shareholders Meeting shall make a decision on the election (appointment) of the external auditor of the bank. 

23. Upon the provision of the National Bank with a request of the bank included into the composition of a banking group to change the rotation term, it can be increased if the legislation of the country of registration provides for the external auditors rotation term other than that established for the international holding company by the present Regulation. 

4. Audit of a Banking Group 

24. The bank being at the head of a banking group, a banking holding company or a parent company and a subsidiary of the bank representing themselves an audited group shall be subject to annual audit by an independent audit organization (external auditor) having a license for the conduct of audit in accordance with the legislation of the Kyrgyz Republic on the audit and the requirements of the present Regulation  

25. Audit of the bank or a banking group shall be conducted on a consolidated basis and individually for each participant of the banking group. Audit of the banking group shall be conducted by one audit organization. 

26. The National Bank may exclude the requirements specified in Clause 27 upon a request of the bank and its affiliate (affiliates), if the bank and affiliate will furnish proofs and the National Bank will recognize the following circumstances: 

a) inability to conduct audit for all persons of the audited group by one audit organization due to high cost of the audit, which may cause to negative consequences for the banks financial condition or the absence of the audit organization, which could complete the audit of each person of the audited group during the required period or to conduct a proper audit in relation to each person of the audited group; 

b) the bank or its affiliate took all the measures to satisfy the requirements specified in the present clause; 

c) provision of a permit by the National Bank to conduct the audit of different persons of the audited group by various audit organizations will not cause negative influence on the results of the audit of the bank, any affiliate of the bank or a banking group in a whole. 

27. The National Bank cannot exclude the requirement on the audit of all persons included in the audited group by one audit organization until all the audit organizations, which supposedly will conduct the audit of different persons included in the audited group, will agree in writing to provide each other with access to their working papers and an audit opinion related to the audit of the bank and its affiliates, change of information during the audit and interaction between them regarding the content of their audit opinions. 

28. The reports by each participant of the group and a consolidated report shall be drawn up on the results of the audit of a banking group. 

In the case, the net total capital index of the banking group participant shall comprise less than 5% of the net total capital of the bank, being at the head of the banking group separate reporting by the banking group participant shall not be required. 

5. Audit of Financial Statements 

29. The bank shall ensure the conduct of the external audit of the bank upon the completion of a fiscal year not later than ninety days from the beginning of a new fiscal year. 

30. The external auditor shall express the opinion regarding compliance of the banks financial statements in all material aspects with the established principles of submission of financial statements (international financial statements standards). 

31. The external auditor shall consider the subjection of the banks financial statements to material misstatement and use of applied principles of financial statements regarding the data and circumstances related to the banks activities, as well as: 

a) to assess the risks identified and to define whether they are applied to the financial statements in a whole and whether they can influence on a number of affirmations, purposes and strategies of the bank, as well as related commercial risks that can lead to the risks of material misstatement; 

b) to assess the choice and application of accounting policies, including the reasons of any its changes. The external auditor shall assess whether the accounting policies of the bank corresponds to the character of its commercial activities and whether the selected and applied provision of the accounting policies correspond to the applicable concept of preparation of the financial statements and if they are appropriate; 

c) to assess and analyze the financial results of the banks activities in order to identify and assess the risks of material misstatement both from fraud and because of a mistake at the level of the financial statements and assumption, development and conduct of the audit procedures in response to these risks. 

32. The external auditor shall consider compliance of accounting and classification of the banks activities with the legislation of the Kyrgyz Republic, regulatory requirements of the National Bank, accounting policies and procedures of the bank. For these purposes, the external auditor of the bank shall perform the following procedures within the audit conducted in accordance with the international audit standards and requirements of the National Bank necessary for the expression of opinion in relation to compliance of the banks financial statements in all material aspects with the established principles for submission of financial statements required to obtain the information regarding the following sub-clauses: 

a) assessment of compliance of a credit policy applied by the bank with the circumstances, including the character, size and complexity of the banks activities within the frames of assessment of the banks internal control system related to the financial statements and being relevant to the audit, including: 

- whether quality of credit risk management is ensured though a proper activities of the Credit Committee of the bank; 

- whether there are procedures for reviewing the credit application; 

- whether the required and sufficient information about the borrower is collected; 

- whether the control (monitoring) over the timeliness of credit repayment, including by affiliates and related parties determined as such in accordance with the international financial statements standard and the banking legislation, is exercised; 

- whether the necessary justification for restructuring credits is ensured; 

- whether a list of activities undertaken by the bank during the reporting period aimed at repaying the credit, including the credits under judicial process, is maintained; 

b) justification of classification and assessment (justification of allocations to reserve to cover potential losses and damages) of a credit portfolio and other assets, as well as off-balance sheet liabilities conducted by the management; 

c) assessment of an appropriate character of the applied accounting policies, and justification of estimated values calculated by the management in relation of other assets immovable estate acquired by the bank as a result of collection of a collateral; 

d) availability of assessment of collaterals on extended credits, and whether the assessment carried out by the management is validated; 

e) compliance of the periodicity conducted by the bank with the procedures for confirming balances on the accounts of outstanding loan and “loro” and “nostro” accounts in accordance with the banks internal policies and requirements of the National Bank, and ensuring compliance of deposit accounting with the established deposit structure and other borrowings; 

f) assessment of an appropriate character of the applied accounting policies and the relevant disclosure of information on the types of transactions in the securities market, including while conducting trust activities. 

33. It is necessary to consider compliance of accounting and disclosure of transactions with affiliates and related parties with the relevant requirements. For this purpose, the external auditor of the bank shall follow all the procedures necessary to obtain the information regarding the fact that: 

a) affiliates and related parties and transactions are established; 

b) whether there is an appropriate permit and policy for the conduct of transactions with affiliates and related parties, including the proper reflection and disclosure of the conditions for carrying out these transactions in the financial statements of the bank; 

c) whether there are sufficient and appropriate audit evidence that accounts receivable as a result of transactions with affiliates and related parties will be repaid in a timely manner; 

d) procedures for the assessment and management of risks generally accepted in the banking practice of the bank (such as credit assessment, acceptance of collaterals, etc.) shall be observed and applied in the analysis of transactions with affiliates and related parties. 

34. In the course of studying audit-relevant controls, the external auditor shall analyze their structure and, with the help of additional procedures (along with sending requests to employees of the organization) shall determine whether these controls are implemented in practice. 

The assessment of compliance of the banks internal control system with the circumstances, including the nature, size and complexity of the banks activities by the external auditor can be conducted by obtaining the information about: 

a) adequacy of the management structure of the bank to the types and volumes of the transactions performed by the bank (participation of management bodies in decision-making, allocation of responsibilities between managers, availability of provisions on structural units and job descriptions); 

b) the organization of control over the reflection of all transactions in accounting and the preparation of reliable financial statements; 

c) the organization of the internal control system in the bank; 

d) the organization of control over the activities of subsidiaries and branches of the bank; 

e) the organization of risk management in the bank; 

f) implementing the recommendations of the previous audit in the form of developing new or improving the existing internal procedures of the bank, as well as improving the internal control system of the bank. 

35. The external auditor shall consider the compliance of transactions and procedures for carrying out the banks transactions on making payments and settlements with the legislation of the Kyrgyz Republic and the regulatory requirements of the National Bank based on the audit sample. For this purpose, the external auditor of the bank needs to conduct audit to which extent the following is observed and provided: 

a) compliance of paper payment documents with their electronic counterparts; 

b) timeliness of payments; 

c) compliance with the terms of confidentiality and security when making electronic payments and working with personal keys of authorized persons of the bank, observance of the rules for their storage and use; 

d) timeliness and correctness of crediting funds to customer accounts and debiting funds from customers accounts;  

e) timeliness of receiving and transmitting information when making electronic payments; 

f) meeting the requirements for filling out the details of payment documents. 

36. The external auditor shall fully adhere to the requirements of the international audit standards, audit standards for Islamic Financial Institutions with respect to the responsibility of the external auditor of the bank to review unfair acts and errors during the audit of the financial statements of the bank. 

6. Audit of Information Systems 

37. The banks shall conduct audit of the information system at least once every two years. The term of the external audit of information systems shall be determined based on two consecutive years from the date, on which the last external audit of information systems was conducted. 

38. The external auditor shall carry out analysis and assessment of compliance of the information systems with the banks requirements during and for the purposes of the audit of information systems: 

a) regulatory legal acts of the National Bank in terms of information security of the bank; 

b) internal policies/procedures of information systems of the bank approved by the management of the bank. 

39. While conducting the external audit of information systems, at least it shall be necessary: 

a) to study the internal regulations on ensuring information security for their sufficiency and compliance with the requirements of the legislation of the Kyrgyz Republic and regulatory legal acts of the National Bank; 

b) to study strategic documents of the bank, business-plans, policies and procedures on information systems risks management in order to assess their adequacy, sufficiency and relevance; 

c) to assess IT-process quality system and the operational risk management system; 

d) to assess the system for ensuring the continuity of the information systems operation and plans for restoring information systems in the event of emergency situations; 

e) to assess the level of network security, operating systems, applications and databases, personnel and physical security; 

е) to consider the degree of security of information systems in the branches; 

f) to assess the access control system and the distribution of roles in automated systems; 

g) to assess the level of awareness of the banks personnel in the field of information security; 

h) to consider the issues of compliance with the requirements of the legislation with respect to intellectual property rights and the use of licensed software products. 

7. Requirements to the Bank on Submission of an Opinion/Report of the External Auditor  

40. The audit opinion shall reflect the information in accordance with the international audit standards and the requirements of the National Bank. Herewith, an audit opinion on the banks financial statements shall be unified for all users according to the international financial statements standards. 

41. Upon completion of a fiscal year, the bank shall: 

1) provide the National Bank with a certified copy of an audit opinion together with the financial statements and a letter of the auditor to the management of the bank five working days before holding of an annual General Shareholders Meeting; 

2) ensure approval of an annual financial statements of the bank by the General Shareholders Meeting not later than ninety days from the beginning of a new fiscal year; 

3) provide the National Bank with a certified copy of an audit opinion together with the financial statements approved by the General Shareholders Meeting and a letter of the external auditor to the management of the bank not later than one hundred and five working days before the beginning of a new fiscal year; 

4) publish a new financial statements of the bank (including consolidated statements) along with the audit opinion in Mass Media not later than one hundred and twenty days from the beginning of a new fiscal year according to the form and in the order that have been established by the National Bank. 

42. The bank shall be obliged to provide the National Bank with a certified copy of an analytical report upon the results of the audit of information systems and a letter to the management within 5 working days upon completion of the audit of information systems. 

43. The banks shall provide the National Bank with the copies of publications, in which the annual financial statements of the bank approved by the external auditor of the bank was published within 3 working days after the publication. 

44. The bank shall notify the authorized state body regulating the audit activities on the conduct of compulsory audit and the publication of financial statements according to the legislation of the Kyrgyz Republic. 

45. The National Bank shall be entitled to require that the bank, a banking holding company or a subsidiary correct deficiencies that have led to the audit opinion with reservations or any other adverse opinion of the external auditor regarding the financial statements of the bank, and its subsidiary, a banking holding group or any significant subsidiary of the banking holding company. 

46. The National Bank shall have the right to apply any measures established by the banking legislation, up to the revocation of a license, to the management of the bank, members of the Board of Directors, members of the Audit Committee of the bank, to the controlling shareholders and/or the bank itself, if the deficiencies identified during the audit are not corrected within a period established by the National Bank. 

47. The external auditor shall be obliged to inform the Management, Board of Directors of the bank and the National Bank of the following within one working day of the date, on which the below circumstances have been identified:  

1) on identified facts threatening to the stability and on the events or conditions indicating the inability of the bank to continue its activities uninterruptedly within twelve months after the end of the reporting period; 

2) on events and conditions that are a cause for the introduction of Provisional Administration and the revocation of a license according to the legislation of the Kyrgyz Republic; 

3) on a decision to refuse to conduct the external audit during the audit of the bank; 

4) on disclosure of fraudulent practices or a fraudulent scheme or on the identification of any transactions falling under the signs of the transaction on “laundering” criminal proceeds and financing of terrorist or extremist activities; 

5) on refusal of the bank to report any information to the National Bank upon the request of the external auditor; 

6) on the identification of significant violations or deficiencies in the internal control system, which could lead to heavy losses in the bank in the period following a reporting one in accordance with the international audit standards or requirements of the legislation of the Kyrgyz Republic; 

7) in other cases provided for by the legislation of the Kyrgyz Republic. 

48. The external auditor shall be obliged to provide any information related to the audit upon the request of the National Bank. Provision of such information shall not be considered as the disclosure of confidential information while conducting the external audit. 

49. Authorized representatives of the National Bank shall be entitled to meet the external auditor and receive oral and written information from them during the inspection. 

50. The management of the bank informed by the external auditor on the facts of violation of the legislation or refusal to conduct the external audit shall inform the National Bank on the receipt of such information from the external auditor within two working days. 

51. Should the National Bank recognizes that the audit opinion does not correspond to the requirements of the legislation of the Kyrgyz Republic and/or the international audit standards, the bank shall be obliged to conduct repeated audit for its account. 

8. Final Provisions 

52. The National Bank shall have the right to deny the opinion of the external auditor of the bank, including until the holding of an annual general meeting and to require conducting a repeated audit of the bank or affiliate, if there are found circumstances, including: 

1) detecting the facts of withholding information that is a basis for making conclusions on any restrictions while conducting audit in accordance with the legislation of the Kyrgyz Republic; 

2) carrying out the activities by the audit organization that is not provided for by a license; 

3) revocation of the auditors qualification certificate by an authorized body; 

4) non-independence of the external auditor of the bank; 

5) non-compliance and/or lack of knowledge of the external auditor of the necessary standards, audit practices, accounting and banking; 

6) identification of the facts of non-compliance with the legislation of the Kyrgyz Republic and this Regulation in the activities of the audit organization. 

If the above circumstances are revealed, the National Bank shall send a corresponding notice to the bank. The bank shall be obliged to conduct a repeated external audit of the bank in accordance with the requirements of the legislation of the Kyrgyz Republic and this Regulation. The repeated audit shall be carried out at the expense of the bank and/or its affiliated persons. 

53. The National Bank may provide the external auditor of the bank with the necessary information pertaining to the external audit of the bank in the order that has been established by the legislation of the Kyrgyz Republic. 

External audit of banks shall not cancel or replace banking supervision over the banks activities by the National Bank. 

The National Bank of the Kyrgyz Republic, if necessary, may involve an independent audit organization and/or an individual auditor for inspection of the activities of banks and their branches on a contractual basis to perform: 

- review of methods used by the bank to compile regulatory reports; 

- assessment of the adequacy of management and the internal control system; 

- assessment of the internal control system (including internal audit service); 

- assessment of observance of the principles of international financial statements standards, standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions; 

- assessment of compliance of the banks activities with the requirements of the legislation of the Kyrgyz Republic and regulatory acts of the National Bank, etc.; 

- assessment of the risk management system of information systems as a category of operational risk. 

54. The National Bank shall be entitled to require the bank to conduct an unscheduled audit in accordance with the legislation of the Kyrgyz Republic. Herewith, the bank shall pay for the services of the audit organization. 

55. The objectives, tasks and the term of an unscheduled audit shall be discussed by the National Bank, the bank and the external auditor and shall be drawn up in a protocol that is signed by three parties. The audit can be conducted by an audit organization that meets the requirements of the legislation of the Kyrgyz Republic, including regulatory legal acts of the National Bank. 

56. The Bank shall have the right to appeal against the decision of the National Bank to conduct an unscheduled audit in accordance with the procedure and terms established by the legislation of the Kyrgyz Republic, including regulatory legal acts of the National Bank. In this case, the appeal against this decision of the National Bank by the bank does not suspend its execution. 

57. The officials of the bank shall be obliged: 

- to create conditions for the external auditor of the bank to conduct timely and full audit, to provide all the documentation necessary for its conduct, as well as to provide explanations and clarifications in oral and written form upon his/her request; 

- promptly eliminate all violations identified by the audit, including accounting, preparation of financial statements in internal control of the bank. 

58. Officials and employees of the banks are prohibited: 

- to influence the external auditor in order to change the opinions substantiated and confirmed by documents and calculations based on the results of the banks external audit; 

- to take any actions with a view to limit the range of issues to be clarified while conducting an external audit of the bank; 

- to restrict the access of the external auditor of the bank to the documents, accounting, employees of the bank, as well as to the premises of the bank, if it is necessary for the purpose of conducting an external audit of the bank. 

In case of such events, the external auditor of the bank shall be obliged to notify the National Bank to that extent directly in writing with the provision of a copy to the Board of Directors of the bank.