8. The quality and improvements related to the internal controls, or control deficiencies

Currently the internal control at JSC «Altyntau Resources» operates at the high level: there is a special department in the company's internal control which is responsible for the implementation and development of the reliable system of controls; the department of accounting and financial reporting is responsible for the accounting for specialized services, carrying out an inventory of fixed assets. Therefore, I can conclude that the company pays significant attention to its internal environment. However, the JSC “Altyntau Resources” is planning to implement the IPO procedure in the near future, thus moving forward the new horizons to become a publicly traded company and obtain new investments. This fact represents the need to continuously sustain and improve the internal controls as the level of risk in the operations can increase. For the purpose of the internal control improvement over fixed assets the management of the company can follow the list of actions including:

1. keep the reliable records of the fixed assets received or acquired;

2. improve the control of the fixed assets quality and production power;

3. follow the method of proactive work to prevent the occurrence of the failures in the financial data related to the fixed assets in advance;

4. provide the personnel responsible for the fixed assets accounting with the trainings to update the knowledge and improve the skills of the employees;

5. introduction of the improvements into the policies of the company on the accounting of fixed assets, including the corporate accounting policies;

6. maintain the management and control over the main supply chains of the company

9. Monitoring of controls

The monitoring of the internal control ensures that the company operates efficiently and manages the risks associated with the operations processes. The monitoring can provide the management of the company with the findings related to the whether the company take into account the fluctuate nature of the risks associated with the business; whether the controls organized to minimize the risks and so on. The process of monitoring can be implemented through the control of the risks associate with the operations. Moreover, the information related to those controls should also be monitored including the analysis of the appropriate documentation (invoices, bill of lading, etc.) and the financial data.

10. The implications for further testing of the account balances

At this stage I can identify the internal risk as low as the JSC “Altyntau Resources” operates based on the policies and follows all the regulations needed to run business successfully. It is difficult to precisely identify the level of control assurance, however being based on the findings provided below I can suggest that the control assurance is quite high, as the internal system of control in the company is developed with the high level of reliability and confidence.