The internal audit department

Conduct of internal audits, including:

  • Confirming the accuracy of the Companys financial accounts;
  • Evaluating the efficiency of the internal control system for business processes;
  • Ensuring integrity of the Companys assets;
  • Confirming compliance with legal standards and corporate regulations;
  • Monitoring implementation of measures to address failings.

Organising the integrated risk management system (IRMS), including:

  • Developing and updating the methodological basis for the IRMS (analysis of standalone and systemic risks, preparing recommendations);
  • Listing, review, analysis, assessment and updates concerning the Companys risks;
  • Monitoring and efficiency evaluation of measures implemented to control key risks and specific risks of the Companys business units;
  • Implementing the IRMS in corporate management processes (business planning, project risk management, target-specific management).

Measures to prevent fraud, including:

  • Special inspections to identify evidence of fraud;
  • Preparing recommendations on fraud prevention;
  • Creation and maintenance of a hotline to provide information on fraud.

Development of a methodology for internal audits, and interaction with regional internal audit units, including:

  • Developing methodological documents to regulate activities of the Internal Audit Department;
  • Functional management of regional internal audit units;
  • Methodological support and occupational training for employees of the Internal Audit Department and of regional internal audit units;
  • Quality control of the internal audit function

Subordination of the internal audit service, interaction with the issuers Management Board and the Board (Supervisory Council): the Internal Audit Department reports directly to the Companys CEO. The Board of Directors coordinates appointment (and subsequent resignation) of the head of the Internal Audit Department.

Interaction between the internal audit function and the issuers external auditor:

The Internal Audit Department reports on a regular basis to the Gazprom Neft Board of Directors and also presents information to the Audit Committee about material non-compliance found during inspections of financial and business activities at the Company.