13.07.2021 Announcement on the beginning of the procedure for selecting an audit organization.
Kazakhoil Aktobe LLP, guided by the Rules for the selection of an audit organization for Samruk-Kazyna JSC and organizations, fifty or more percent of voting shares (participatory interest) of which are directly or indirectly owned by Samruk-Kazyna JSC on the right of ownership or trust management dated April 16, 2021 (hereinafter referred to as the Rules), announces the Procedure for the selection of an audit organization to provide services for the audit of financial statements (hereinafter referred to as the Services) in the following scope and on the following terms:
1. Name and address of the Customer: «Kazakhoil Aktobe» LLP, Aktobe, 030000, Business Center «Capital Plaza», A.Moldagulova Ave. 46, 2nd floor.
2 Scope of services to be procured:
2.1 Audit services on financial statements for 2021, rendered in accordance with International Standards on Auditing, provide for audit of separate financial statements of the Customer, prepared in accordance with International Financial Reporting Standards (hereinafter – IFRS) and Accounting Policy of Kazakhoil Aktobe LLP, as well as in accordance with the list, forms approved by the regulatory act of the authorized state body of the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan «On Accounting and Financial Reporting».
Conducting an audit review of the Customer’s interim condensed financial statements» for the period from January 01 to June 30, 2021 prepared in accordance with IAS No. 34 and the Customer’s Accounting Policy, with issuance of a review report in accordance with ISRE 2410;
auditing the annual separate financial statements as of and for the year ending December 31, 2021 of the Customer to express an independent opinion on the fair presentation of the financial statements:
– in accordance with IFRS;
– in accordance with the list and forms approved by the Order of the Minister of Finance of the Republic of Kazakhstan No. 404 dated June 28, 2017 «On Approval of the List and Forms of Annual Financial Statements for Publication by Public Interest Entities» (as amended by the Order of the Minister of Finance of the Republic of Kazakhstan No. 665 dated July 01, 2019);
providing a report to the Customer’s management on the status of implementation of recommendations to address the deficiencies specified in the management letter for the previous reporting year based on the results of the audit review of IFRS statements for the six months ended June 30, 2021 (hereinafter – Status of Recommendations Implementation);
providing a management letter following the audit of the separate IFRS statements for 2021 detailing the results of additional reviews and assessments included in the list of related services, with appropriate recommendations to address the deficiencies, in two versions:
– The first version of the letter containing material weaknesses in the Customer’s internal control system (if any).
A material weakness is defined as a deficiency in which the design or operation of one or more components of the internal control system does not reduce to a relatively low level the risk that misstatements caused by errors or falsification of amounts that could be material and that would not be detected in a timely manner by the Employer’s employees in the normal course of performing their assigned duties.
– A second version of the letter containing the complete management letter, including material weaknesses in internal controls and all other deficiencies and recommendations
Assisting the external auditor of JSC NC KazMunayGas and Caspian Investments Resources Ltd in the preparation of their consolidated financial statements for 2021, including providing access to the working papers prepared by the Company’s external auditor.
2.2 Provide the related services listed below as part of the audit, the cost of which is included in the total cost of the Services, with appropriate recommendations thereon in the management letter:
– Providing recommendations on the financial reporting process with respect to improving the quality as well as reducing the time required to prepare the financial statements;
– expressing an opinion on the methodology and results of fixed assets valuation (if performed, if necessary, in agreement with the Customer) in accordance with the Customer’s Accounting Policy and accounting procedures;
– submitting proposals to improve disclosures in the notes to the Customer’s financial statements;
– conducting an annual tax review for the year 2021, in order to identify tax risks (without providing a tax report), whereby the main focus shall be on those issues where the possibility of tax risks is most significant. The Parties to the Agreement understand that the tax review is not an audit on taxes, conducted in accordance with the law of the Republic of Kazakhstan «On Auditing» and, accordingly, the auditor’s report on taxes is not provided to the Customer;
– consulting on accounting and tax accounting during the audit without providing reports on consultations;
– assessment of accounting and financial reporting (including assessment of the inventory accounting procedure taking into account the specifics of the Customer’s activities, assessment and revaluation of assets and liabilities, methods and procedures for inventory of assets and liabilities, including reconciliation of receivables and payables with suppliers of goods, works/services);
– assessment of the adequacy of the Customer’s internal control and risk management system on issues related to accounting and financial reporting;
– assessment of the state of software and hardware equipment and reliability of automated information processing systems;
– assessment of compliance of the Customer’s activities with the requirements of the legislation of the Republic of Kazakhstan in the field of accounting and financial reporting;
presence of the auditor at carrying out by the Customer of inventory of stocks, fixed assets and intangible assets to confirm their reliable reflection in financial statements (if necessary, by agreement with the Customer).
3. The amount allocated for the purchase of services is: 52,447,500 tenge without VAT.
4. Copies of the Request for participation in the Procedure for selecting an audit organization authorized representatives of potential Participants can receive in electronic form or in hard copy at the address: Aktobe, 030000, Business Center «Capital Plaza», A.Moldagulova Avenue 46, 2nd floor.
Request for participation in the Selection Procedure shall be provided after signing a confidentiality agreement between the Customer and the potential Participant.
Contacts for more detailed information:
– Chief Accountant – mobile number 8 701 588 9237, e-mail Koskina.N@koa.kz.
– Deputy Chief Accountant – mobile number 8 701 514 1448, e-mail firstname.lastname@example.org. 5.
5. A potential Bidder willing to participate in the Selection Procedure shall submit a formal proposal for the provision of Services within the timeframe and in accordance with the requirements specified in the Request for Participation in the Selection Procedure.
The deadline for submission of formal proposals shall be: 14:00 hrs. July 13, 2021.
Deadline for submission of formal proposals: 18:00 hrs. July 28, 2021.