Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Chamber of Auditors of the Republic of Kazakhstan

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Republic of Kazakhstan


    2. Name of member body:
      Chamber of Auditors of the Republic of Kazakhstan

      Or please specify name:



    3. Individual responsible for preparation:
      Liliya Mitsuk


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      05 / 2000



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      Eurasia Council of Certified Accountants and Auditors



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Law of Republic of Kazakhstan on "Accounting and Financial Reporting"
      b). the Enacting body: Government
      c). date the Act or Code came into force: 09 / 1991


    25. How can IFAC obtain a copy of the Act or Code?
      by e-mail from us


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Article 2.1 of Law of RK #2732 on Accounting and Financial reporting dated 26.12.1995 International Financial reporting Standards in Republic of Kazakhstan. Financial statements are prepared by entities in accordance with International Financial reporting Standards published on state and Russian languages by the organization entitled (permission in writing) to translate and publish them in republic of Kazakhstan by International Accounting Standards Board. Article 16.1 Consolidated financial statements are required by Article 16.1.
      Private companies See above for listed entities. Note: 4. Entrepreneurs and organizations that are subjects of small business according to legislation of RK except for entities that are engaged in production, processing and sale of excisable goods (except for retail sale of alcohol and tobacco goods) as well as in excisable kinds of activity are entitled to use simplified accounting maintenance and financial reporting preparation according to accounting standards approved by authorized body under agreement with central executive body of RK that provides for tax control over execution of tax liabilities to state.
      Governmental Instructions on Scope and formats of annual, quarter financial statements of state institutions #217 dated 15.05.1998 approved by Order of Ministry of Finance of Republic of Kazakhstan (RK).
      Not-for-profit See above for listed entities
      Other (please describe) State Institutions State institutions financed from state budget must prepare annual, quarter, reports on execution of funds use plan.
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities See below on Entities Subject to Audits
      Private companies See below on Entities Subject to Audits
      Governmental
      Not-for-profit
      Other (please describe) State Institutions Law of Republic of Kazakhstan on Audit activity issued by Government of RK dated 20.11.1998 # 304-1 - Article 4 on Audit and Kinds of Audits. Following entities are subject to mandatory audit: banks, credit partnerships, institutions rendering separate banking services and entities conducting their activity on the stock exchange market, insurance entities, accumulative pension funds, companies engaged in pension assets management, investment funds, natural monopolies, entities with foreign capital, joint-stock companies. For auditing standards, refer to question 34.
      Other (please describe) State Institutions


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Court
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      1. Law of Republic of Kazakhstan on "Accounting and Financial reporting" dated 26.12.1995
      Article 2.1:

      Preparation of financial statements is to be performed by organizations in accordance with IAS/IFRS published on state and Russian languages by organizations that are entitled to translate and/or publication in RK by International Accounting Standards Committee.


      2. Requirements to audit listed companies and applicants as listing companies:

      Appendix #2 to Listing rules of Kazakhstan Stock Exchange dated 06.02.2002

      Paragraph 1: To include securities in official list of A category and retain in this list issuer of those securities must be audited on an annual basis by one following audit companies (by audit company itself or its affiliates):
      - Ernst & Young
      - Deloiite & Touche
      - KPMG
      - PWC
      - only for non-governmental securities issued by companies-residents of RK in accordance with legislation of RK, any audit company that meets requirements of World Bank for audit companies in the purpose of audit of projects.
      - In RK financed by loans or grants of World Bank.

      Paragraph 2: To include securities in official list of A category financial statements of the issuer supported by audit opinion must be submitted including consolidated financial statements, in case the issuer has affiliates, comprised of balance sheet, income and loss statement, cash flow statement an statement on changes in owners' equity at least for last financial year.

      Paragraph 3: To include securities in official list of B category and to retain in this list issuer of those securities must be audited on an annual basis by any audit company.

      To include scurities in official list of B category financial statements of the issuer supported by audit opinion must be submitted including consolidated financial statements, in case the issuer has affiliates, comprised of balance sheet, income and loss statement, cash flow statement an statement on changes in owners' equity at least for last financial year.

    2. the Enacting body(ies)

      For 34a item 1 above, the Government of Republic of Kazakhstan.
      For 34a item 2 above, Kazakhstan Stock Exchange

    3. the latest amendment date?

      For 34a item 1 above, 10.07.2003
      For 34a item 2 above, 06.05.2004


    35. How can IFAC obtain a copy of the Legal authority?
      By e-mail from us


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      See question 34a


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      See question 34a


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 3 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Chamber of Auditors of RK
      Other (please describe) Natural monopoly entities Ministry of Finance of RK, Agency on Regulation of Natural Monopolies and Protection of Competition
      Other (please describe) banks and organizations that provide certain bank services National Bank of RK, Ministry of Finance of RK
      Other (please describe) Other entities Chamber of Auditors of RK

      a. How can IFAC obtain copies of these documents?

      by e-mail from us

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Chamber of Auditors of RK)


    44. For Chamber of Auditors of RK, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Chamber of Auditors of RK - Created by the 1993 Auditing Law as a public association which facilitates development of the auditing profession. The new auditing law in 1998 gave formal recognition of the Chamber's position as the auditing standard-setting body.
      See Appendix 6


      b. Name of standards

      Kazakhstani Standards on Auditing.

      KSAs are developed based on translated International Standards on Auditing.


    45. How many voting members does the standard-setting body have?
      404


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      qualification


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      member body


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      11 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      n/a

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      n/a



    52. To what entity is the standard-setting body accountable?
      Concerning KSA to Ministry of Finance of Republic of Kazakhstan


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Publishing standards in English, Russian and Kazakh languages

    2. accessibility of meetings (i.e., public or private)

      Private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority

    4. other relevant due process activities

      Control over standards following in accordance with charter of Chamber of Auditors of Republic of Kazakhstan


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      5 Day(s)


    Section 5B -- Standard-Setting (Ministry of Finance of RK, Agency on Regulation of Natural Monopolies and Protection of Competition)


    44. For Ministry of Finance of RK, Agency on Regulation of Natural Monopolies and Protection of Competition, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government ministry

      b. Name of standards

      Kazakhstani Standards on Auditing


    45. How many voting members does the standard-setting body have?
      n/a


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      n/a


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Government budget

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      n/a



    52. To what entity is the standard-setting body accountable?
      n/a


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      n/a

    2. accessibility of meetings (i.e., public or private)

      n/a

    3. approval process for final standards (i.e., majority required to approve final standards)

      n/a

    4. other relevant due process activities

      n/a


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 5B -- Standard-Setting (National Bank of RK, Ministry of Finance of RK)


    44. For National Bank of RK, Ministry of Finance of RK, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      State entity

      b. Name of standards

      Kazakhstani Standards on Auditing


    45. How many voting members does the standard-setting body have?
      n/a


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      n/a


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      n/a


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      n/a

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    52. To what entity is the standard-setting body accountable?
      n/a


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      n/a

    2. accessibility of meetings (i.e., public or private)

      n/a

    3. approval process for final standards (i.e., majority required to approve final standards)

      n/a

    4. other relevant due process activities

      n/a


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Code of Ethics Chamber of Auditors of RK
      Professional Accountants in Business Code of Ethics Chamber of Auditors of RK
      Professional Accountants in the Public Sector Normative documents Government
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      From Ministry of Finance of RK, Accounting and Audit Methodology Department

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Chamber of Auditors of RK)


    56. For Chamber of Auditors of RK, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Chamber of Auditors of RK - Created by the 1993 Auditing Law as a public association which facilitates development of the auditing profession.

      b. Name of standards

      Code of Ethics


    57. How many voting members does the standard-setting body have?


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 6B -- Standard-Setting (Government)


    56. For Government, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      government

      b. Name of standards

      normative documents


    57. How many voting members does the standard-setting body have?
      n/a


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: n/a


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      n/a


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      n/a


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      n/a

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      n/a



    64. To what entity is the standard-setting body accountable?
      n/a


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      n/a

    2. accessibility of meetings (i.e., public or private)

      n/a

    3. approval process for final standards (i.e., majority required to approve final standards)

      n/a

    4. other relevant due process activities

      n/a


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      School - 11 years - compulsory education
      College - 2-3 years - secondary education
      Institute/university - 4-6 years - tertiary education


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      In accordance with Law of Republic of Kazakhstan on audit activity, qualifying requirements for attestation of applicants to become auditors are approved by the Resolution of Ministry of Finance, Provision on Attestation Order of Applicants to auditors:

      -Only the applicants that have tertiary education and work experience in the field of economy, finance, accounting analysis, revision and law for five years from last seven years as well as applicants that are engaged in scientific and scholastic activity concerning accounting and audit in tertiary institutions and that have work experience in aforementioned fields for not less than two years from last five years.
      - Applicants to become auditors must confirm their qualification by passing exams in following fields:

      - civil legislation
      - financial accounting
      - management accounting
      - taxation
      - financial management
      - audit


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Tertiary education
      Professional examinations
      See question 68
      Practical experience
      See question 68
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      Qualification Improvement Committee of Chamber of Auditors of RK, Qualifying Commission on Attestation of Auditors of RK with participation of Ministry of Finance of RK

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

    2. How many voting members does the relevant body(ies) have

      Chamber of Auditors - 404

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      11 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      Government, Financial Market Regulation and Oversight Agency


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)
      qualifying exams held by Qualifying commission on Attestation of Auditors of RK


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify): Qualification improvement according to programs approved by Chamber of Auditors of RK once in two years at least


    80. What entity grants the license?
      Ministry of Finance of RK, Financial market Regulation and Oversight Agency


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Instructions on accounting in state institutions, law of RK on Accounting and Financial reporting in state institutions 17.03.2004, 10.07.03 Treasury department of Ministry of Finance of RK
      Ministry/department Instructions on accounting in state institutions, law of RK on Accounting and Financial reporting in state institutions 17.03.2004, 10.07.03 Treasury department of Ministry of Finance of RK
      Statutory authority/agency Instructions on accounting in state institutions, law of RK on Accounting and Financial reporting in state institutions 17.03.2004, 10.07.03 Treasury department of Ministry of Finance of RK
      Profit entity owned by government Law of RK on accounting and Financial reporting, IAS 10.07.03 Government of Republic of Kazakhstan
      State governments
      Local governments Instructions on accounting in state institutions, law of RK on Accounting and Financial reporting in state institutions 17.03.2004, 10.07.03 Treasury department of Ministry of Finance of RK
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      by e-mail from us

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Treasury department of Ministry of Finance of RK)


    83. For Treasury department of Ministry of Finance of RK, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Part of Ministry of Finance of RK

      b. Name of standards

      Instructions on accounting in State Institutions, Law of RK on Accounting and Financial Reporting in State Institutions


    84. How many voting members does the standard-setting body have?
      n/a


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: n/a


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      n/a


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      n/a


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      n/a

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      n/a



    91. To what entity is the standard-setting body accountable?
      n/a


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      n/a

    2. accessibility of meetings (i.e., public or private)

      n/a

    3. approval process for final standards (i.e., majority required to approve final standards)

      n/a

    4. other relevant due process activities

      n/a


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 8B -- Standard-Setting (Government of Republic of Kazakhstan)


    83. For Government of Republic of Kazakhstan, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      See section 9

      b. Name of standards



    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Law of Rk on accounting and financial reporting dated 26.19.1995 10.07.2003 Government and IASB
      Other (please describe) insurance companies IAS IASB
      Other (please describe) banks and organizations performing certain types of banking activity IAS IASB
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      by e-mail from us

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Government and IASB)


    95. For Government and IASB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government

      b. Name of standards

      Law of RK on accounting and financial reporting


    96. How many voting members does the standard-setting body have?
      n/a


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: n/a


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      n/a


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      n/a


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      n/a

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      n/a



    103. To what entity is the standard-setting body accountable?
      n/a


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      n/a

    2. accessibility of meetings (i.e., public or private)

      n/a

    3. approval process for final standards (i.e., majority required to approve final standards)

      n/a

    4. other relevant due process activities

      n/a


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 9B -- Standard-Setting (IASB)


    95. For IASB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    96. How many voting members does the standard-setting body have?


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Kazakhstan Stock Exchange with Financial market regulation and oversight agency, the National Bank


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      - Law of Republic of Kazakhstan (RK) on State Regulation and Oversight over Financial Market
      - Law of RK on Securities Market
      - Law of RK on Audit Activity
      - Law of RK on Accounting and Financial Reporting
      - Administrative code


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      licensing, access to auditing listing companies

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements





    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Kazakhstan Stock Exchange



    Section 10B -- Stock Exchange
    Kazakhstan Stock Exchange Details


    110. For Kazakhstan Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      According to Charter of Kazakhstan stock Exchange, Listing Rules

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Fefusal to include securities to list of securities of "A" or "B" categories; delisting

    3. How enforcement actions are administered.

      By stock exchange Board according to listing rules



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Financial Market Regulation and Oversight Agency, National Bank


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      Detecting and preventing violations of requirements of laws, standards as well as of unauthorized activity (without license)


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      - Through licensing basing on auditor license and testing - Participation in lawmaking activity - Oversight over fulfilling license rules

    2. accounting and auditing standard-setting

      Development of additional requirements (standards) regarding matters not stipulated in ISA

    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements

      Through sanctions, administrative penalties, recall and abeyance of license



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Financial markets regulation and oversight agency


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Constitution of RK, Law of RK on State regulation and oversight over financial markets


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession



    2. accounting and auditing standard-setting

      Development of additional requirements (standards) regarding financial accounting in non-banking institutions

    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements

      Sanctions provided for by legislation



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Financial market regulation and oversight agency


    119. What is the source of Legal authority of the regulatory authority(ies)?
      see question 116


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      Oversight over fulfilling qualifying requirements, requirements of Law of RK on Licensing, Audit activity , requirements of Audit standards licensing of audit of insurance (reinsurance) organizations

    2. accounting and auditing standard-setting

      Development of additional rules on financial accounting in insurance (reinsurance) organizations concerning matters not stipulated in MFRS

    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements

      sanction for noncompliance with requirements of standards



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Ministry of Finance


    122. What is the source of Legal authority of each regulatory authority?
      Constitution of RK, Law of RK on Audit activity


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      licensing of audit activity
      oversight over activity of licensee


    2. accounting and auditing standard-setting

      development of rules concerning matters not stipulated in ISA

    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements

      sanctions for noncompliance with requirements of standards, laws



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      Rules and recommendations of IFAC



    125. Under what authority does the organization conduct the program of quality assurance review?
      in accordance with Charter and provisions of Chamber of Auditors of RK


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      combinations



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Committee on Professional Ethic, Claims and Appeals of Chamber of Auditors of RK


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?



    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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