MegaFon has put special emphasis on internal control issues. The Board of Directors, the bodies responsible for internal and external audit and the Revision Commission are all important elements of the internal control system.
As at 31 December 2016, the composition of the Revision Commission was as follows:
По состоянию на 31 декабря 2016 года в состав Ревизионной комиссии входят:
The internal control function is led by the Internal Audit Director, reporting to the Company’s Board of Directors.
The Internal Audit team assesses the performance of the internal control, risk management, and corporate governance systems. The Internal Audit team also provides assurance to and advises on the Company’s operational processes, including procurement, investment, construction, customer service, processes for external and internal reporting, and IT and information security systems, as well as participates in the development of various internal procedures.
The internal control system (ICS) in place at MegaFon is a set of organisational measures, policies, instructions and control procedures designed to ensure the preparation of reliable financial statements in compliance with applicable laws and regulations. The ICS effectiveness is maintained through the following actions:
In 2016, MegaFon continued to develop its ICS to incorporate the corporate and organisational changes aimed at improving the existing operational processes, including the establishment of the Shared Services Centre to co-locate accounting and other functions.