Internal Audit Division

In 2010, Mechel Group reorganized the functions of internal control and audit, creating the Internal Audit unit.

1. Tasks and functions of Mechels Internal Audit

Its primary task is to present the Board of Directors with guarantees and consultations aimed at increasing shareholder value, aid the company in meeting its goals on business management and improving operations.


  • control over execution and analysis of effectiveness of internal control system in its entirety, as well as stand-alone strategic projects and the company’s operational divisions;
  • periodic evaluation of design and operational effectiveness of key control procedures’ on the company’s level as a whole and on the level of separate business processes, offering independent appraisal;
  • independent and unbiased evaluation of operational, financial and informational systems regarding risk management, controls and corporate governance processes to increase their effectiveness;
  • coordination with the company’s external auditor and other organizations to ensure common goals are met;
  • control over financial and administrative operations’ compliance with the company’s interests in order to protect its assets;
  • active assistance to Audit Committee, Board of Directors and Company’s management by means of relevant consulting while maintaining independence and objectivity in improving the efficiency internal control system, risk management system and corporate governance.

2. Organizing activities of regional internal audit and internal control system assessment branches at Mechels enterprises

  • work planning for regional branches;
  • cross audits between Mechel’s enterprises;
  • optimization of regional branch structure;
  • involvement of regional branches in Internal Audit Division’s projects;
  • control over meeting deadlines by regional branches and quality review of their works;
  • regular training for regional branches employees.