External Audit

In accordance with the laws of the Republic of Kazakhstan, the selection of the audit organization conducting the audit of the Bank and the determination of the amount of payment for its services fall within the exclusive competence of the Board of Directors.

In line with the External Audit Engagement Policy and the Regulations on the Audit Committee, the responsibilities of the Audit Committee of the Bank’s Board of Directors include:

• Preliminary approval of the selection of the audit organization conducting the financial statement audit and the amount of payment for its services;
• Monitoring the implementation of recommendations from internal and external auditors;
• Appointing or replacing the external auditor, approving qualification requirements and/or technical specifications for the competitive selection of the external auditor, determining the amount of payment for services, and evaluating the quality of the external auditor’s services;
• Assessing the independence and objectivity of the external audit, and conducting a preliminary review of the audit report before submitting it to the Board of Directors;
• Reviewing reports from regulatory authorities, external and internal auditors, and management regarding compliance with legal requirements;
• Holding regular meetings with the external auditor, reviewing management letters prepared by the external auditor, and analyzing the implementation of the auditor’s recommendations by management;
• Reviewing other issues related to the activities of internal and external audit and financial and operational reporting;
• If necessary, conducting separate meetings with Bank management, external, and internal auditors.

In accordance with the Bank’s Rules for the Procurement of Goods, Works, and Services, as part of the centralized procurement process conducted by Baiterek NMH JSC for financial statements auditing services for 2024–2026, PricewaterhouseCoopers LLP was selected as the winning bidder. A long-term agreement for the procurement of financial statement auditing services for 2024–2026 was signed with PricewaterhouseCoopers LLP on 26 April 2024. The contract is valid until 30 April 2027. The fee for auditing the 2024 financial statements is KZT 89.6 million.

The Bank follows the principle of rotation of the project partner (having the main responsibility for the audit) in accordance with the Bank’s External Audit Policy, which is not more than 7 years.

If the Bank receives non-audit services from an external auditor, the Bank reviews all services for the possibility (risk) of a conflict of interest (a situation where the external auditor’s interest may influence its opinion on the reliability of the financial statements) affecting the external auditor’s independence. In 2024, PricewaterhouseCoopers LLP did not provide any consulting services unrelated to the financial statement audit.