Financial Crime World

Kazakhstan’s Quality Control and Auditing Practices Under Scrutiny

Overview

The Chamber of Auditors of the Republic of Kazakhstan (CoA RK), an International Federation of Accountants (IFAC) member, has established a quality assurance review system that meets all requirements of the Supreme Monitoring Organization (SMO 1). The Union of Auditors of Kazakhstan (UAK), also an accredited organization, has a similar system in place. However, the Collegium of Auditors of the Republic of Kazakhstan’s (CoA RK) system is still under review.

International Standards

Kazakhstan has made significant progress in adopting international standards. The Law on Audit Activity requires the application of International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). The Russian translation of the 2016-2017 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is currently being applied.

  • The Ministry of Finance has translated the 2018 Handbook of International Public Sector Accounting Pronouncements into Kazakh in accordance with IFAC Translation Policy.
  • However, it remains unclear whether all public entities are applying these standards.

Investigation and Discipline

The Law on Audit Activity and the Law on Accounting and Financial Reporting establish the authority of accredited auditing and accounting organizations to investigate and discipline their members for non-compliance with applicable standards, ethical requirements, and financial reporting regulations.

Current Status

  • Quality Control: Partially Adopted
  • Auditing Practices: Partially Adopted
  • Code of Ethics: Partially Adopted
  • International Public Sector Accounting Standards: Adopted
  • Investigation and Discipline: Not Assessed

Note: The current status indicates whether Kazakhstan has adopted or partially adopted each international standard. A “Partially Adopted” status means that while some progress has been made, there is still room for improvement.

Conclusion

While Kazakhstan has made significant progress in adopting international standards, there is still room for improvement. The country’s quality control and auditing practices need to be further aligned with international best practices to ensure transparency and accountability in the financial sector.