Internal Audit

The Internal audit is an independent, objective assurance and consulting activity designed to add value and improve operations of Alfa-Bank, its subsidiaries and related companies. It helps Alfa-Bank, its subsidiaries and related companies accomplish their objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The Internal Audit activity encompasses examination and evaluation of the adequacy and effectiveness of controls in responding to risks within the organization’s governance, operations, and information systems, as well as evaluation of risk exposures regarding the:

  • Reliability, integrity and timeliness of financial and operating information and the means used to identify, measure, classify and report such information
  • Compliance with laws, regulations, policies, procedures, and contracts
  • Safeguarding of assets
  • Effectiveness and efficiency of operations and programs
  • Achievement of strategic objectives and goals
  • Other areas upon special requests of the Audit Committee in order to meet the expectations of the Board, senior management and other stakeholders.

Reporting lines

Internal auditors render impartial and unbiased judgments about reviewed activities.The Chief audit executive is appointed/dismissed by the Board.

The Chief audit executive reports functionally to the Board.

Relationships with other audit and control units

The external auditor is advised of and has access to relevant internal audit reports, and is kept informed of any significant matters that come to the internal auditor’s attention that may affect the work of the external auditor. Similarly, the external auditors will inform the internal auditor of any significant matters that may affect internal auditing.

The Internal Audit may and should be useful in determining the nature, timing and extent of external auditing activities. However, the external auditor has the sole responsibility for the audit opinion on financial statements.

The existence of additional departments within the organisation for controlling or monitoring specific activities does not relieve the internal audit department from examining those specific activities. Examples of such departments are Risk Management and Internal Control. However, for the sake of efficiency, the Internal Audit Department may use information reported by those control departments in carrying out its tasks.

Standards

The Internal Audit Department follows the Standards for the Professional Practice of Internal Auditing and Code of Ethics issued by The Institute of Internal Auditors.