The Internal Audit Department

The purpose of the Internal Audit Department (IAD) is to assist the Board of Directors and Company management in attainment of their goals through a systematized and consistent approach to assessment of (and improvement to) efficiency of risk management processes, control and corporate governance. The tasks of the IAD are:

• Conduct of internal audit at the Company in order to improve efficiency of the system of risk management, corporate governance, internal control, and operating efficiency of business processes in the Company.
• Providing the Board of Directors, Management Board, President, BoD Audit Committee. Risk Management Committee and Company managers with objective information about Company risks and about efficiency of the corporate governance system, including the system of risk management and internal control.
• Implementing decisions of the Board of Directors, Management Board, President, and BoD Audit Committee as part of exercise by the IAD of its functions.

The IAD has organizational and functional independence, and cooperates in its work with the Control and Audit Department and the external auditor in order to improve the efficiency of audit procedures. The BoD Audit Committee ensures direct access for the Head of the IAD to the Committee Chairman, and vice-versa.

Main documents regulating the activity of the IAD are:

• The section of the Regulation on the BoD Audit Committee regarding interaction of the Committee with Company subdivisions responsible for internal control and audit.
• The Regulation on the subdivision which defines the goals and tasks of the IAD its functions, rights, and duties, its interaction with other structural subdivisions, and limitations on the activity of the IAD.

Detailed information on activities of the Internal Audit Department and other bodies of the audit and control system of Rosneft can be found in the Annual Report.