Internal Audit Service

The Internal Audit Service (the IAS) is an independent internal division of the bank responsible for the internal control in accordance with the powers conferred on the IAS and permanent monitoring of the internal control system of the bank with the aim to improve the internal control to provide its effectiveness, including taking into account changing internal and external factors influencing the bank’s activity.

The IAS acts upon the bank’s Articles of Association supervised directly by the Board of Directors in accordance with the Regulations on the Internal Audit Service.

The IAS is functioning on a continuous basis and its activity is not eligible for audit reviews.

The IAS on its own initiative reports to the bank’s Board of Directors on any issue arising in the course of its activity and on its proposals regarding the relevant decisions to be made. The same information is to be provided to the bank’s Management Board and its Chairman.

The IAS has an independent status and reports to the Board of Directors of the bank. The Management bodies, internal divisions and the bank’s employees who are not members of the IAS team have no right to interfere into the scope of engagement of the IAS and performing functions assigned thereto. The bank’s management has no right to restrict the content and scope of internal audit reviews in any way.

The IAS main functions are the following:

  • To control and assess effectiveness of functioning of the internal control system in whole and implementation of decisions of the bank’s management bodies;
  • To inspect effectiveness of the bank’s risk assessment methodology and the bank’s risk management system, established by the internal documents of the bank, as well as the usage scope of these documents;
  • To inspect and test accuracy, completeness and timeliness of accounting and reporting as well as reliability of collection and submission of information (including accuracy, completeness and timeliness);
  • To inspect the methods applied to ensure safety of the bank’s property;
  • To estimate economic efficiency and effectiveness of transactions committed by the bank;
  • To inspect processes and procedures of the internal control system.

The IAS is not involved in performing any bank’s transactions. The Head of the IAS (his deputies) and the IAS team are not authorized to sign or visa any payment, settlement, accounting or other documents on the bank’s behalf if upon such documents the bank takes any bank’s risks.

The Head of the IAS cannot lead any other bank’s internal division. The Head of the IAS and its team members cannot participate in any activity of other internal divisions of the bank.

The IAS provides the Board of Directors with semi-annual and annual plans of work and internal audit reviews for its approval. The IAS submits reports on fulfillment of plans of work and internal audit reviews to the Board of Directors at least twice a year.