Control and audit
Internal controls
FESCO established the Internal Audit Department to perform internal audit functions and provide governing bodies with complete and accurate information on the Company’s operations.
The Internal Audit Department is responsible for improving the effectiveness and efficiency of corporate governance practices and business processes, reducing costs, overseeing safe and sustainable use of assets, and ensuring compliance with corporate governance principles. The Department is governed by the FESCO Internal Audit Policy.
In 2021, the Company continued to improve its risk management system (RMS) focused on the successful operation of FESCO Group and making effective decisions amid uncertainty.
The RMS provides reasonable certainty that the Group’s strategic and operational goals will be achieved by means of identifying and managing risks. The RMS is governed by FESCO’s Regulations on Risk Management.
External audit
The Annual General Shareholders Meeting appointed JSC KPMG as the Company’s external auditor for 2021. The external auditor is responsible for auditing the Company’s financial and operating performance as prescribed by the applicable laws of the Russian Federation and pursuant to the contract signed between the Company and the auditor. According to clause 4, article 5
The issuer shall select the external auditor through a tender procedure (Russian laws on procurement do not apply to said tender procedures). The Company shall select its external auditor by collecting and comparing bids submitted by the auditors. The proposed nominee for the external auditor role shall be approved by the General Shareholders Meeting.