Basic powers of the Auditing Commission and the Auditor
The following matters are within the cognizance of the Auditing Commission:
- Confirmation of Company annual reports, accounting statements, profit and loss accounts reliability;
- Analysis of the Company financial standing, determination of the company financial standing improvement activities, development of recommendations for the Company’s management bodies;
- Company’s financial and economic activities examination (audit) arrangement and performance, including:
- Examination (audit) of financial, accounting, payment and settlement and other documents of the Company, related to Company financial and economic activity, with respect to their conformity with the Russian legislation, By-Laws, internal and other documents of the Company;
- Control over fixed assets safety and application;
- Control over order of insolvent debtors’ arrears writing off to the Company’s losses;
- Control over Company’s monetary assets application in compliance with the approved business case and budget of the Company;
- Control over surplus fund or other special funds formation and application;
- Check of dividends on Company shares, bond interests, return on other securities correct and timely distribution and payment;
- Verification of previous instructions fulfillment on shortcomings, revealed by the previous audits, removal;
- Performance of other actions (measures), related to audit of the Company’ financial and economic activities.
Auditing Commission is entitled, and in case of major disturbances in the Company’s financial and economic activities is obliged to call for the extraordinary general shareholders’ meeting convocation.
Auditing Commission is entitled to attract specialists in respective spheres of law, economics, finance, accounting, management, economic security, etc., including the specialized entities, for audit performance in accordance with the resolution on the audit performance.
Company’s financial and economic activities examination (audit) can be performed at any time on the Auditing Commission initiative, by General Shareholders’ Meeting resolution, Board of Directors’ decision, or on request of the shareholder (shareholders), possessing minimum 10% of the Company voting shares.
The Company Auditor performs financial and economic activities audit in accordance with the Russian legislation and on the basis of service agreement.
On the basis of financial and economic activities audit the Auditing Commission and the Auditor prepare the conclusion that must contain the following:
- Confirmation of Company’s reports, and other financial documents reliability;
- Information provision on facts of violation by the Company of accounting and financial reporting order, stipulated by the Russian legislation, as well as on violation of Russian legal acts in the course financial and economic activity.