PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Audit

INTERNAL AUDIT

Internal audit procedures constitute an integral part of the corporate governance system and include purposeful actions of the Board of Directors and management of the Company to improve the risk management procedures and increase the probability of achievement of goals.

Internal audit is regulated by the Regulation on the Internal Audit Division of TATNEFT. The new edition of the Regulation was approved by the Board of Directors of TATNEFT, decision No. 3 o f January 29, 2016.

Internal audit is carried out within the framework of the annual plan approved by the Board of Directors.

Audit reviews the system of internal control of operational efficiency, compliance with legislation and integrity of property. Audit is based on a risk-focused approach. The report stating the internal audit results is sent to the management of the Company and the Audit Committee. The internal audit division subsequently monitors activities and notifies the Company management and the Audit Committee of the Board of Directors on actions taken to e liminate the drawbacks revealed.

In 2017, 9 audits were performed. In addition, upon instructions from the Company management, the internal audit division of the Company took part in 12 unscheduled projects on various financial and economic issues. The division also conducted monitoring of planned activities following the results of the audits in 2014–2017.

Results of assessment carried out by experts of CJSC Deloitte Touche CIS show that the division generally complies with the International Professional Standards of Internal Audit and the Code of Ethics of the Institute of Internal Auditors.

INDEPENDENT AUDITOR

In order to obtain an independent assessment of accuracy and completeness of accounting (financial) statements, the Company annually engages an external auditor to audit both its IFRS and RAS statements. Candidates to the position of external auditor of the Company undergo preliminary review by the Audit Committee of the Board of Directors of TATNEFT, following that and basing on that final recommendations are prepared to proceed to approve the external auditors according to procedures set out in applicable legislation.

JSC PricewaterhouseCoopers Audit was nominated by decision of the General Shareholders’ Meeting to be the auditor to review Company’s RAS accounting statements for 2017.

JSC PricewaterhouseCoopers Audit was nominated by decision of the General Shareholders’ Meeting to be the auditor to review Company’s IFRS consolidated statements for 2017.