Gazprom-AR2014

Corporate Governance
121
Internal Control System and Audit
OAO Gazprom’s
internal control system
rests on the principles
of interaction, prompt
response, compliance,
development,
relevancy, functionality
and cost efficiency.
OAO Gazprom’s internal control system is crucial for protection of shareholder and investor
interests. It is designed as an aggregate of bodies and internal control methods, rules of conduct
and acts of employees in achieving corporate objectives. A consistent internal control system
is a tool to improve the Company’s performance, comply with applicable law requirements and
supervise performance of managerial decisions.
Objectives, goals and components of the internal control system, its operating principles,
as well as OAO Gazprom’s management bodies and persons responsible for internal control are
set forth in the Regulation on the Internal Control System of OAO Gazprom approved by Resolution
of the Board of Directors No. 2315 dated 25 February 2014.
The internal control system is designed to provide reasonable assurance that OAO Gazprom
— performs efficiently;
— ensures completeness, timeliness and fairness of all types of accounts and reports;
— complies with applicable laws;
— protects its assets (including information assets).
Internal control is exercised by the Board of Directors, Audit Committee, Audit Commission,
executive bodies (the Management Committee and its Chairman), business unit managers and
other Company’s employees.
As instructed by Chairman of the Management Committee, with a view to improve internal
control and audit in OAO Gazprom and ensure compliance with best Russian and international
practices, in 2014, OAO Gazprom’s regulations governing the internal control system were refined
in terms of its operating principles, and key control procedures were defined. It was established
that certain control procedures are developed by business units in line with OAO Gazprom’s
objectives and approved by the Company’s internal regulations. It was further established that
responsibilities in development, documentation, introduction, implementation, monitoring and
improvement of internal control procedures are set out in regulations on business units and job
descriptions of OAO Gazprom’s employees; and functions of the Audit Committee of the Board
of Directors were determined or aligned.
To address the issue of vertical integration of the internal audit in Gazprom Group and ensure
compliance of OAO Gazprom’s internal audit procedures with the International Internal Audit Standards,
best Russian and international internal audit practices and recommendations of the Russian
Code of Corporate Governance (letter of the Central Bank of the Russian Federation
No. 06-52/2463 dated 10 April 2014), in 2015, OAO Gazprom’s Internal Audit Development Concept
and Regulation of Internal Audit are planned to be developed and approved.
OAO Gazprom Annual Report 2014