External Audit

Auditor

For the purposes of independent evaluation of authenticity of accounting (financial) statements the Company engages an external auditor on an annual basis for auditing statements prepared in accordance with IFRS and RAS.

CJS Deloitte and Touche CIS (performed audit of statements of MTS PJSC for 2002 – 2014) was approved as the auditor of financial statements of the Company for 2015 by a resolution of the Annual General Shareholder Meeting of MTS PJSC.

In the reporting year, contract with the Auditor were concluded for conductance of:

  • the audit of annual financial statements of MTS PJSC for 2015 prepared in accordance with RAS;
  • review engagement of abbreviated consolidated financial statements of MTS PJSC and its subsidiaries as of March 31, June 30 and September 30, 2015 prepared in accordance with IFRS);
  • integrated audit of consolidated financial statements of MTS PJSC and its subsidiaries and audit of efficiency of the system of internal control over preparation of financial statements for 2015.

In March 2016 the Auditing Committee approved results of the integrated audit of consolidated financial statements and audit of efficiency of the system of internal control over preparation of financial statements for 2015 performed by the external auditor.

Based on the results of the audits performed the Auditor of MTS PJSC expressed its opinion on authenticity of financial statements of MTS PJSC prepared in accordance with RAS as well as expressed its opinion on authenticity of consolidated financial statements prepared in accordance with IFRS.

A tender for selection of the external auditor of MTS PJSC is conducted at least once in five years.

To conduct the tender, MTS PJSC establishes a tender commission. Based on tender results the tender commission generates recommendations for selection of the external auditor which are submitted for approval to members of the Auditing Committee at the Board of Directors of MTS PJSC.

In the event that the auditor candidacy is approved by the Auditing Committee, Board of Directors and General Shareholder Meeting of the Company, a contract for financial statements audit services shall be signed with an auditing company.

The amount of auditor’s remuneration for audit of statements of MTS Group of Companies for 2015 approved by the Board of Directors of the Company made up 121,580 thous. RUB, excluding VAT (including works for audit of compliance with requirements of the Sarbanes-Oxley Act).

During 2015 Deloitte also rendered advisory services for individual taxation issues and other audit related services. The total value of such services in 2015 was 15,313 thous. RUB