External audit

In accordance with the legislative requirements of the Russian Federation, the Company’s auditor conducts an audit of the Company’s financial and economic activities. The Company’s auditor is approved by the General Meeting of Shareholders. The criteria and procedure for selecting an auditor as well as the rules for rotating the audit managers are governed by the Policy for Interaction with the External Auditor of PJSC Inter RAO, including the procedures that ensure auditor’s independence for the impartiality of the external audit.

In September 2018, closed competitive negotiations were held to select a single auditor candidate for 2019, 2020, and 2021. LLC Ernst & Young was selected as the winner during closed competitive negotiations and approved at the Annual General Meeting of Shareholders of PJSC Inter RAO held on May 20, 2019.

The cost of the audit services for the financial statements of PJSC Inter RAO under IFRS and Russian Accounting Standards (RAS) as well as a review of the interim financial statements under IFRS amounts to RUB 34.2 mln, excluding VAT.

On February 26, 2020, the Audit and Sustainable Development Committee reviewed a report containing a description of audit and other services provided to all companies that are part of the group of entities of PJSC Inter RAO and companies that are part of a single network of audit organizations along with the Company’s Auditor for 2019. According to this report, the cost of non-audit services provided by the auditor and its affiliates make up 13.72% of the total cost of the auditor’s services.

Share of the cost of non-audit services provided by the auditor and its affiliates in the overall cost of the auditor’s services, %
Share of the cost of non-audit services provided by the auditor and its affiliates in the overall cost of the auditor’s services, %

In order to enhance the efficiency of both external and internal audit activities, the external auditor actively interacts with the Internal Audit Unit and uses certain internal audit results as part of the external audit procedures.

On February 26 and 28, 2020, the Audit and Sustainable Development Committee considered an assessment of the auditor’s opinions and the quality of the audit, and the external audit process was deemed to be effective.