External and Internal Audit

External Audit

The Social Health Insurance Fund (hereinafter referred to as the Fund) conducts an annual audit of its annual financial statements.

The Fund's annual financial statements are preliminarily approved by the Board of Directors of the Fund. Final approval of the audited annual financial statements is carried out by the Sole Shareholder in accordance with the Law of the Republic of Kazakhstan "On Joint Stock Companies."

The Sole Shareholder (participant) is the person who owns the shares (participation interests) in the authorized capital of the Company. The Ministry of Health of the Republic of Kazakhstan acts as the Sole Shareholder of the Company, independently making decisions on issues within the competence of the shareholder, except for matters requiring agreement with the Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan concerning the management and use of the state shareholding.

The selection of the audit organization is carried out through an open competition on the public procurement web portal of the Republic of Kazakhstan.

The Fund’s financial statements have been audited by the following independent external auditors:

- The financial statements for the year ended December 31, 2023, were audited by Finex-Standart LLP;

- The financial statements for the year ended December 31, 2022, were audited by Independent Audit Company “Centraudit-Kazakhstan” LLP;

- The financial statements for the year ended December 31, 2021, were audited by BDO Qazaqstan LLP;

- The financial statements for the year ended December 31, 2020, were audited by Independent Audit Company “Centraudit-Kazakhstan” LLP;

- The financial statements for the year ended December 31, 2019, were audited by MIN TAX AUDIT LLP;

- The financial statements for the year ended December 31, 2018, were audited by Independent Audit Company “Centraudit-Kazakhstan” LLP;

- The financial statements for the year ended December 31, 2017, were audited by Russell Bedford A+ Partners International Audit Company LLP;

- The financial statements for the year ended December 31, 2016, were audited by Russell Bedford A+ Partners International Audit Company LLP.

The Fund annually publishes its approved annual financial statements on the internet resource of the financial reporting depository.

Internal Audit

The mission of internal audit is to preserve and enhance the value of the Fund by conducting objective internal audits based on a risk-based approach, providing recommendations, and facilitating knowledge sharing.

The Fund’s Internal Audit Service (hereinafter – IAS) is a body responsible for monitoring the Fund’s financial and operational activities, assessing internal controls, managing risks, reviewing documentation related to corporate governance, and providing consultations to improve the Fund’s operations.

In carrying out its activities, the IAS is guided by the legislation of the Republic of Kazakhstan, the Fund’s Charter, the Corporate Governance Code, the IAS Regulations, the Internal Audit Rules of the Fund, and other internal documents of the Fund.

The IAS also operates in accordance with the International Standards for the Professional Practice of Internal Auditing developed by the Institute of Internal Auditors (hereinafter – Standards).

Based on the results of an external independent evaluation of the IAS’s performance for the period 2021–2024, conducted by KPMG Tax and Advisory LLP, the Fund’s IAS was found to be 85% compliant with the Standards, while the average compliance rate across the Central Asia region was 73%.