Internal Audit Department

The Company conducts internal audits for a systematic and independent evaluation of the reliability and effectiveness of the risk management and internal control system as well as corporate governance practices.

Internal audits are performed by the Company’s Internal Audit Department whose director is appointed in coordination with the Board of Directors.

The Internal Audit Department is functionally subordinate to the Audit Committee of the Board of Directors and directly subordinate to the Company’s CEO.

The Internal Audit Department’s mission is to provide the Board of Directors, Audit Committee, CEO and senior management with independent, objective, reasonable and substantiated guarantees and consultations that aim to improve the Company’s activities.

The internal audit function helps to achieve the Company’s goals using a systematic and sequential approach to assessing and improving the effectiveness of internal control, risk management and corporate governance processes.

The main functions of the Internal Audit Department, among other things, include:

  • Assessing the effectiveness of the internal control system for the Company’s business processes.
  • Assessing the effectiveness of procedures that ensure the safeguarding and legitimate use of the Company’s assets.
  • Assessing the effectiveness of the internal control system for the accuracy of the Company’s external and internal reporting.
  • Assessing the effectiveness of internal monitoring of compliance with the requirements of applicable existing legislation and regulatory organisations, internal organisational and administrative documents and regulations, and the decisions of the Company’s governing bodies.
  • Assessing the effectiveness of information systems, IT processes and automated processes, and their compliance with the Company’s strategy.
  • Assessing the effectiveness of anti-fraud and anti-corruption measures at the Company. Participation in investigations of fraud and violations of the Corporate Conduct Code based on requests from the Company’s Audit Committee and CEO.
  • Organising a system to collect and process information about signs and instances of fraud and corruption – a hotline to prevent fraud, corruption and other violations of the Corporate Conduct Code.
  • Assisting the Company with establishing and monitoring the Integrated Risk Management System (hereinafter – IRMS).
  • Developing recommendations to improve the Company’s activities and eliminate shortcomings based on audits, special inspections, investigations and consultations and convey them to people who can ensure they are properly considered.
  • Monitoring the implementation of measures developed based on audits and investigations to improve the internal control system as well as corporate governance and risk management processes.
  • Interacting with the Company’s audit commissions and external auditors and taking part in inspections of the fulfilment of recommendations from the external auditor and audit commissions.

The Head of the Internal Audit Department reports to the Audit Committee and Board of Directors twice a year about the Department’s performance results for the reporting period and also regularly provides information about other audit issues falling within the Audit Committee’s purview as part of meetings held in person and in absentia.

As part of operational audit projects in 2016, the Internal Audit Department conducted an assessment of the effectiveness of the internal control system based on the following areas: accounting of oil and associated petroleum gas, the purchase of oilfield services, recording the quantity and quality control of petroleum products, the shipping, storage, transhipment and sale of petroleum products, the management of logistical resources and an assessment of processes involving the Company’s financial activities and IT functions.

Galina Yuryevna Delvig
Head of the Internal Audit Department
Born in 1960.
Graduated from Plekhanov Moscow Institute of National Economy.
2008 – Head of the Internal Audit Department of Gazprom Neft PJSC.
Interest in charter capital(as of 31 December 2016)

Does not own shares

Department structure

Taking into account the Internal Audit Department’s recommendations, management developed and is implementing a range of measures to improve the effectiveness of the internal control system for business processes and is making amendments to the regulatory and methodological framework.

In addition to audit activities, the Department is developing consulting services that aim to improve the Company’s business.

One of the main focuses of the Internal Audit Department’s risk management activities in 2016 was methodological support provided to the Company, its subsidiaries and major projects using risk identification and assessment procedures in the form of risk sessions (cross-functional meetings with managers and employees) held in accordance with an approved plan.

As part of efforts to develop the integrated risk management system, Department employees conducted training measures for risk coordinators at subsidiaries and continued work to implement initiatives to integrate the risk management system and business planning processes, manage major investment projects and conduct internal audits (systematisation of information about risks that have been analysed or identified during audits).