Audit of Financial Statements
In accordance with NSD’s Articles of Association, company’s financial statements are to be audited by an external auditing firm on an annual basis. The auditing firm appointed by NSD's General Meeting of Shareholders conducts audits in accordance with the Russian laws and the agreement entered into with NSD.
An auditor's report and annual financial statements are first reviewed by the Audit Committee of NSD’s Supervisory Board and by the Internal Audit Commission to verify the accuracy of the data disclosed in the annual financial statements. Auditor's reports and NSD’s annual financial statements are presented to NSD's General Meeting of Shareholders on an annual basis.
Operational Audit
Pursuant to Article 19 of the Law “On the Central Securities Depository”, the CSD must conduct an operational audit in accordance with the international standards for service organization controls at least once in two years.
In 2023, as part of the tender procedure, NSD evaluated potential contractors from among Russia's largest audit firms and sent out offers for participation in tendering. Following a review of the tenderers' commercial offers, NSD's Tender Committee decided on 23 June 2023 (Minutes 13-23) to select Technologies of Trust – Audit JSC as the organisation to carry out the operational audit and entered into an agreement with it to conduct an operational audit in accordance with International Standard for Assurance Engagements (ISAE) 3402, Type 2.
Details of Technologies of Trust - Audit JSC:
Full corporate name: Joint Stock Company Technologies of Trust - Audit
Abbreviated name: Technologies of Trust - Audit JSC
Located at: Russia Moscow intra-urban municipal formation Akademicheskiy municipal district Krzhizhanovskogo St., 14-3, room 5/1.
INN/KPP: 7705051102/772701001 Primary State Registration Number (OGRN): 1027700148431
The Company number in the register of auditors and audit organisations of the Ministry of Finance of the Russian Federation is 220022 (date of entry in the register – 08 December 2022).
Technologies of Trust – Audit JSC is a member of the Non-profit Partnership – Auditor Association Sodruzhestvo located at: Russia 119192 Moscow Michurinsky Prospekt, 21-4, under the number (primary registration number of entry) 12006020338, since 31 January 2020.
No factors that could or may affect the independence of the company that conducted the operational audit of NSD were identified.
On 2 November 2023, based on the results of the operational audit, NSD received an unmodified report from the independent auditor of the service organisation providing assurance on the existence of the service organisation's controls in accordance with International Standard on Auditing (ISAE) 3402, Type 2. The auditor's report was received with respect to NSD's description of its central securities depository services and the design and operation of controls related to the internal control objectives stated in the description.
In 2021, NSD arranged a tender process during which potential counterparties from among major international audit firms in Russia were evaluated and invited to bid. Having analyzed the business proposals submitted by the bidders, NSD’s Tender Committee, on 21th of May 2021 (Minutes 11-21), awarded the contract for an operational audit under the International Standard on Assurance Engagements (ISAE) 3402 standard, type II, to AO Deloitte & Touche CIS.
Details of AO Deloitte & Touche CIS:
Full name: AO Deloitte & Touche CIS
Short name: Deloitte
Registered office: 5 Lesnaya St., 125047, Moscow, Russia
Taxpayer Identification Number (INN) / Taxpayer Registration Reason Code (KPP): 7703097990/771001001
Principal State Registration Number (OGRN): 1027700425444
Number in the control register of auditors and audit organizations of the Ministry of Finance of Russian Federation ORNZ 12006020384.
AO Deloitte & Touche CIS is a member of Self-regulatory Organization of Auditors Association “Sodruzhestvo”, located at: 4, 21, Michurinsky prospekt, 119192, Moscow, Russia.
No factors that could, or is likely to, affect the independence of the organization conducting the operational audit of NSD has been identified.
On December 20, 2021, based on the results of the operational audit, NSD received an independent auditor’s opinion of the service organization providing assurance on the controls of the service organization in compliance with International Standard on Assurance Engagements (ISAE) 3402 The opinion is prepared according to the Type II and does not contain a modified opinion. The opinion was received regarding NSD's internal control processes in the area of services of depository, the Central Securities Depository, the Payment System, Tri-party Services, the Repository, Information Services and Technological Services.
For a complete understanding of the scope and limitations of the audit as well as the purposes of control, please, read the full text of the report at the link.
In 2019, NSD arranged a tender process during which potential counterparties from among major international audit firms were evaluated and invited to bid. Having analyzed the business proposals submitted by the bidders, NSD’s Tender Committee, on 17th of May 2019 (Minutes 14-19), awarded the contract for an operational audit under the ISAE 3402 Type 2 standard to JSC “KPMG”.
Details of JSC “KPMG”:
Full name: JSC “KPMG”
Registered office: sp. 1, floor 3, building 5, 16, Olimpiyskiy prospect ,129110, Moscow, Russia.
Taxpayer Identification Number (INN) / Taxpayer Registration Reason Code (KPP): 7702019950/ 770201001
Principal State Registration Number (OGRN): 1027700125628
Number in the control register of auditors and audit organizations of the Ministry of Finance of Russian Federation ORNZ 11603053203, date of the entry into the register is October 27, 2016.
JSC “KPMG” is a member of the self-regulated organization of auditors "Russian Union of auditors", located at: 2, 8, Petrovsky per., 107031, Moscow, Russia.
No factors that could, or is likely to, affect the independence of the organization conducting the operational audit of NSD has been identified.
On 2nd October, 2019 JSC “KPMG” released unmodified audit opinion on the results of operational audit conducted in compliance with International Standard ISAE 3402 Type II. Internal control processes of NSD in the field of providing depository, settlement, clearing and repository services were analyzed during the audit.
For a complete understanding of the scope and limitations of the audit as well as the purposes of control, please, read the full text of the report at the link.
In 2017, NSD arranged a tender process during which potential counterparties from among major international audit firms were evaluated and invited to bid. Having analyzed the business proposals submitted by the bidders, NSD’s Tender Committee, on 23 of May 2017 (Minutes 14-17), awarded the contract for an operational audit under the ISAE 3402 Type 2 standard to JSC “Deloitte & Touche CIS”.
Details of JSC “Deloitte & Touche CIS”
Full name: JSC “Deloitte & Touche CIS”
Registered office: 5 Lesnaya St., 125047, Moscow, Russia
Taxpayer Identification Number (INN) / Taxpayer Registration Reason Code (KPP): 7703097990 / 771001001
Principal State Registration Number (OGRN): 1027700425444
Number in the control register of auditors and audit organizations of the Ministry of Finance of Russian Federation ORNZ 11603080484, date of the entry into the register is December 7, 2016.
JSC “Deloitte & Touche CIS” is a member of the self-regulated organization of auditors "Russian Union of auditors", located at: 2, 8, Petrovsky per., 107031, Moscow, Russia.
No factors that could, or is likely to, affect the independence of the organization conducting the operational audit of NSD has been identified.
On 3 October 2017, NSD received an auditor’s report on the operational audit conducted under the ISAE 3402 Type 2 standard. During the audit, the auditors analyzed the internal controls used by NSD when providing settlement, depository, clearing, and repository services. The principal conclusions made in the auditor’s report described below in all material respects:
- the description fairly presents the processes of settlement depository, clearing and repository services provided over the period of 1 January to 30 June 2017;
- the control procedures related to the control objectives stated are suitably designed to provide reasonable assurance that the control objectives can be achieved;
- the control procedures tested to provide reasonable assurance that the control objectives can be achieved, operated effectively during the period of 1 January to 30 June 2017.
To get a complete picture of the audit scope and limitations, as well as of the control objectives, please read the full report here.
In 2015, NSD arranged a tender process during which potential counterparties from among major international audit firms were evaluated and invited to bid. Having analyzed the business proposals submitted by the bidders, NSD’s Tender Committee, on 22 July 2015, awarded the contract for an operational audit under the ISAE 3402 Type 2 standard to PricewaterhouseCoopers Consulting LLC.
Details of PricewaterhouseCoopers Consulting LLC:
Full name: PricewaterhouseCoopers Consulting Limited Liability Company
Short name: PricewaterhouseCoopers Consulting LLC
Registered office: 10 Butyrsky Val Street, 125047 Moscow, Russia
Taxpayer Identification Number (INN) / Taxpayer Registration Reason Code (KPP): 7710764839 / 771001001
Principal State Registration Number (OGRN): 1097746859715
No factor that could, or is likely to, affect the independence of the organization conducting the operational audit of NSD has been identified.
On 12 October 2015, NSD received an auditor’s report on the operational audit conducted under the ISAE 3402 Type 2 standard. During the audit, the auditors analyzed the internal controls used by NSD when providing settlement, depository, clearing, and repository services. The principal conclusions made in the auditor’s report are as follows:
- the description of controls relating to settlement, depository, clearing, and repository services provided over the period of 18 February 2015 to 18 August 2015 is fairly presented;
- the controls related to the control objectives stated are suitably designed to provide reasonable assurance that the control objectives can be achieved;
- the controls tested, along with the additional controls analyzed during the operational audit to provide reasonable assurance that the control objectives can be achieved, operated effectively during the period of 18 February 2015 to 18 August 2015.
To get a complete picture of the audit scope and limitations, as well as of the control objectives, please read the full report here.
In 2014, an operational audit of NSD under the ISAE 3402 Type 1 standard was conducted by PricewaterhouseCoopers Russia B.V.
Upon assessment of the controls implemented by NSD with respect to its services and related processes, the auditor expressed an opinion that the information regarding NSD’s control environment, as presented to the auditor, was accurate in all material respects, and that the controls implemented as of the audit date were suitably designed to achieve specified control objectives.
In 2012, an operational audit of NSD under the ISAE 3402 standard was conducted by JSC KPMG.
In 2011, independent auditor JSC KPMG conducted a pre-audit of NSD’s internal control environment and made a number of recommendations to improve the internal controls.
In 2007, 2008, and 2010 operational audits were conducted by JSC Deloitte & Touche CIS.