According to Federal Law No. 307-FZ On Audit of December 30, 2008, titled «On auditor’s activity» the bank invites a professional audit company to review and verify its annual financial statements (hereinafter «External Auditor»).
The appointment of an External Auditor includes the following steps:
- audit tender;
- approval of the candidate by the Audit Committee of the Supervisory Council;
- approval of the candidate by the Supervisory Committee and recommendations to the General Shareholders Meeting regarding the provisional External Auditor;
- approval of the candidate at the General Shareholders Meeting.
According to Federal Law No. 44-FZ «On the procurement of goods and services for state and municipal needs» of April 5, 2013, VTB Bank conducted a tender on March 18, 2015, to select an audit company for the mandatory annual audit from 2015 through 2019. Ernst & Young won the tender by proposing the most beneficial contractual terms and by receiving the largest number of points in the following criteria:
- Contract price.
Ernst & Young is a company registered and operating according to Russian law, a member of the self-regulatoryorganisation of the Moscow Audit Chamber nonprofit partnership. It is part of the Ernst & Young international auditing and consulting network. The company is licensed to provide financial statement auditing services as well as other audit-related services. It enjoys all the rights and powers granted to the firms within the global Ernst & Young company, including the right to use the company name and logo. Ernst & Young has a shared quality control system and a contract on human resources employment with Ernst & Young Vneshaudit that carried out audits at VTB Bank from 2003 to 2013. This ensures consistency of approach in the auditing services.
The company does not have any proprietary interests in the bank aside from auditing service fees, and is not affiliated with the bank, members of its management bodies or subsidiaries within VTB Group, and does not provide consultation services to the bank as defined in Article 1, paragraph 6 of Federal Law No. 307-FZ «On audit activity» of December 30, 2008.
Following the results of the annual audit, the External Auditor compiles a statement that is submitted for review by the Audit Committee of the Supervisory Council. The reviewed statement is forwarded to the Supervisory Council for consideration by the annual General Shareholders Meeting.