Union of Accountants and Auditors
Associate | Established: 1999 | Associate since 2000
The Union of Accountants and Auditors (UAA) was founded in 1999 with the support of the US Agency for International Development and the CARANA Corporation. It provides consulting services and training courses to its members located in three regional branches. UAA develops annual continuing professional development programs for its members and investigates and disciplines members. Foreign practitioners that are members of IFAC member organizations can become full members of UAA without any attestation. In addition to membership in IFAC, UAA is a member of Eurasian Council of Certified Accountants and Auditors.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
With no direct responsibility for the adoption of a quality assurance (QA) system, the UAA reports that it intends to support the State Service for Regulating and Supervising of the Financial Market (SSRSFM) in establishing a QA review system. In cooperation with the Chamber of Accountants and Auditors, the UAA plans to contribute to the introduction of quality control standards and the QA system in the jurisdiction and has initiated discussions with the SSRSFM about the potential involvement of professional accountancy organizations in the QA process.
The UAA plans to analyze the revised SMO 1 requirements to develop recommendations for implementation for the regulator and to contact other IFAC members that have a QA system in place to understand how to structure and implement such a system.
To support its members with the implementation of quality control standards, the UAA has included ISQC1—which has been adopted in the jurisdiction but is not being applied properly—in the annual continuing professional development (CPD) program for its members. In 2016–2017, the UAA also plans to participate in the tender to provide CPD programs for auditors. While recognizing that the regulation of auditors is currently the prerogative of the SSRSFM, the UAA is encouraged to further raise the regulator’s awareness of the need to establish the system in accordance with international best practices, and make its expertise available to the regulator in developing the appropriate methodology. The UAA is also encouraged to consider ways to support its members in the implementation of quality control standards in light of the planned introduction of QA reviews in the near future.
The UAA is not involved in establishing educational requirements for the profession, which are set by the government and universities and do not seem to be in line with IES. As a member of the Eurasian Council of Certified Accountants and Auditors (ECCAA), however, the UAA participates in forming the ECCAA’s policies and is involved in updating the ECCAA’s two-tiered voluntary certification scheme for obtaining the Certified Accounting Practitioner and Certified International Professional Accountant designations. The UAA reports that, since 2009, it has been working with the ECCAA to bring the certification program in line with IES; however, no results have been reported. The UAA planned a number of activities for 2017–2018 aimed at raising awareness of the regulators, such as the State Service for Regulation and Supervision of the Financial Market of the Kyrgyz Republic, which is responsible for setting initial professional development (IPD) and continuing professional development (CPD) requirements for auditors, the Ministry of Finance, and universities to inform them about the requirements of the revised IES.
The UAA is encouraged to consider accelerating plans to promote to regulators and other stakeholder the need to align national accountancy education programs with international best practices. To this effect, one of its roles could be to translate IES, conduct a review of the existing IPD and CPD requirements in Kyrgyzstan against IES, and work with relevant stakeholders such as universities, education providers, and regulators to promote the need to align accounting education in the Kyrgyz Republic with the requirements of IES. In addition, the UAA is encouraged to monitor international developments and disseminate them to its membership and the general public.
With ISA adopted by law, the UAA reports that it assists the State Service for Regulating and Supervising of the Financial Market (SSRSFM) in the process of translating and implementing international standards. Most of the activities specified in its SMO Action Plan for achieving those aims do not have defined timelines. The UAA reports that it continues to develop relationships with other Russian-speaking bodies to have regular access to recent translations and support its membership with training on ISA. No progress in this area has been reported.
Given the challenges with the implementation of ISA in the jurisdiction, the UAA is encouraged to review its SMO Action Plan and consider actions it can undertake to support their effective implementation. In particular, the UAA is encouraged to work with the SSRSFM and other stakeholders to establish, if deemed feasible, an ongoing process to translate ISA into the Kyrgyz language and introduce quality training programs to support auditors and UAA members with proper application of the standards. It should also consider establishing processes to disseminate information on international developments in the area to its membership and the general public.
Since 2008, the UAA has adopted the IESBA Code of Ethics and, as of 2016, requires the application of the 2010 version of the Code for its members. In 2018, the UAA plans to adopt the IESBA Code in effect at that time. The UAA provides continuing professional development (CPD) on the Code to its members and all statutory auditors in Kyrgyzstan. It includes the study of the Code in its CPD courses and, since 2014, in CPD training for all statutory auditors in Kyrgyzstan. In addition, the UAA reports that it promotes the adoption of the IESBA Code for application by all professional accountants in the jurisdiction to regulators. To this effect, it cooperates with the State Service for Regulating and Supervising of the Financial Market to introduce the necessary amendments to the existing legislation.
The UAA is encouraged to consider establishing processes to adopt the IESBA Code on an ongoing basis, to disseminate information on new and revised pronouncements to its members, and to provide further support to its members on the implementation of the Code. In addition it is also encouraged to provide details on the specific activities it undertakes to promote to regulators the need to define ethical requirements in law for all professional accountants in Kyrgyzstan.
The UAA does not have legal responsibility for setting public sector accounting standard setting. Nevertheless, it continues to play a proactive role in facilitating the IPSAS adoption process in the jurisdiction through collaboration with the government in developing a strategy for IPSAS adoption, revising the Unified Chart of Accounts, and developing guidance on the application of accounting policies for the public sector.
The UAA is encouraged to indicate in its SMO Action Plan whether it has public sector accountants as its members and, if so, whether it provides support to this type of membership through training and other educational activities. The UAA is also encouraged to consider establishing processes to disseminate information on new and revised IPSASB pronouncements to its members and other stakeholders.
Although the UAA established an investigative and disciplinary (I&D) system for its members in 2010, that system is not in line with SMO 6. The UAA reports that it plans to align the system with the revised SMO 6 requirements. The original completion date was moved from June 2016 to February 2017. In addition, in 2015–2018, the UAA plans to collaborate with the State Service for Regulating and Supervising of the Financial Market (SSRSFM), the audit regulator, in establishing a unified I&D mechanism for all statutory auditors in Kyrgyzstan.
As a priority, the UAA is encouraged to compare the I&D policies and processes against the requirements of SMO 6 (please complete Appendix III). Once the comparison is completed, actions should be planned to address any gaps. In addition, the UAA is encouraged to further develop plans and specific activities to collaborate with the SSRSFM on establishing an I&D mechanism for all professional accountants in Kyrgyzstan that is compliant with SMO 6 requirements.
Since the adoption of IFRS in 2003 in Kyrgyzstan, the UAA, which has no direct responsibility for the adoption of accounting standards, has focused its activities on assisting the accounting standard setter, the State Service for Regulating and Supervising of the Financial Market (SSRSFM) in the implementation of IFRS in Kyrgyzstan. Since 2009, the UAA has participated in the World Bank project to develop A Framework of Accounting and Audit Development in Kyrgyzstan and provides its expertise in drafting the amendments to the 2013 Accounting Law and other regulations. The UAA provides training programs and disseminates information on international developments to its members.
The UAA is encouraged to assist the SSRSFM and other interested stakeholders in their efforts to establish ongoing translation processes to reduce the time lag between the issuance of new and revised IFRS and their translation for application in Kyrgyzstan. It is also encouraged to provide more specific information on its current and future IFRS implementation support activities.
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