Each year the Company hires a professional auditing firm that is not associated with the Company through property interests or its shareholders from among the top international auditing companies to audit and confirm the accuracy of its annual financial statements. The Audit Committee conducts the preliminary assessment of auditing firm candidates.
The Company does its best to ensure that the Auditor does not provide the Company with non-audit services or that the cost of non-audit services does not exceed 25% of the total cost of the audit services rendered by the Company. In 2015, the Auditor did not provide non-audit services.
The Company’s Auditor is approved by the General Meeting of Shareholders based on a proposal from the Board of Directors following a competition to select auditing firms in accordance with existing law.
In order to assess the quality of work performed by the external Auditor, the Audit Committee reviews reports by the external Auditor and statements from management and also conducts in-person meetings with representatives of the Auditors.
In June 2015, JSC PricewaterhouseCoopers Audit was re-elected as the Company’s Auditor at the General Meeting of Shareholders.
In September 2015, the Board of Directors set payment for the Auditor’s services at RUB 57 million (excluding VAT):
- RUB 11 million — audit services for Gazprom Neft statements according to Russian Accounting Standards (RAS);
- RUB 46 million — audit services for the consolidated statements according to International Financial Reporting Standards (IFRS), including services involving the audit of interim statements.