Chamber of Auditors of the Republic of Kazakhstan

The Law on Audit Activity of 1998 (as amended in 2020) establishes a mandatory quality assurance (QA) review system for all audits. The legislation assigns responsibility for QA reviews of public interest entity (PIE) audits to the Professional Council on Auditing (PCA), while accredited professional auditing organizations, under the oversight of the Ministry of Finance, are responsible for QA reviews of non-PIE audits.

The Chamber of Auditors of the Republic of Kazakhstan (CoA RK), as an accredited organization, has maintained an operational QA review system since 2007 and conducts inspections of audit firms performing non-PIE audits at least once every three years. Based on available information, the system incorporates key elements of SMO 1 (revised 2012), including defined review cycles, reporting mechanisms, and follow-up procedures. The QA system was developed with the support of the Institute of Chartered Accountants of Scotland (ICAS) and reflects the requirements of ISQC 1.

CoA RK supports the implementation of its QA system through guidance materials, training of inspectors, and continuing professional development activities. It also provides recommendations to firms to address deficiencies identified during reviews and raises awareness of quality control requirements among its members.

At the jurisdictional level, responsibility for QA reviews is shared between the PCA and accredited professional organizations. While CoA RK plays an active role in conducting QA reviews for non-PIE audits and supporting implementation, it does not have full responsibility for the QA system across all audits. In addition, the transition to the new suite of Quality Management standards (ISQM 1, ISQM 2, and ISA 220 Revised) is ongoing.

To further strengthen alignment with SMO 1 requirements, CoA RK is encouraged to continue collaborating with the PCA and the Ministry of Finance to promote consistency in QA review methodologies across PIE and non-PIE audits, support the full implementation of the new Quality Management standards, and ensure that QA processes remain aligned with the latest international requirements.

Current Status: Review & Improve

The Law on Audit Activity of 1998 (as amended in 2020) establishes the framework for initial professional development (IPD) and continuing professional development (CPD) for auditors in Kazakhstan under the oversight of the Ministry of Finance. To practice as an auditor, individuals must be members of an accredited professional organization, be included in the state register of auditors, and fulfill CPD requirements.

CoA RK is responsible for implementing CPD requirements for its members, including monitoring compliance. In line with IES 7 (2019), auditors are required to complete at least 40 hours of CPD annually, of which a portion must be verifiable. CoA RK maintains a structured CPD system, including an annual training plan, a publicly available CPD calendar, and a monitoring mechanism requiring members to submit annual CPD returns. The institute maintains records of members’ CPD activities and provides a range of learning opportunities to support ongoing competence.

Following legislative amendments effective July 2021, responsibility for the professional examination and certification of auditors was transferred to the Professional Council on Auditing (PCA). CoA RK continues to collaborate with the PCA to support the development and delivery of professional examinations and to promote alignment with international best practices, including incorporation of international standards in examination content.

CoA RK also supports practical experience requirements by facilitating training opportunities and promoting compliance with the three-year practical experience requirement established in law. In addition, the chamber engages with universities to encourage the integration of international standards, including IFRS and ISA, into academic curricula and has undertaken efforts to raise awareness of the International Education Standards (IES), including translation initiatives.

While the education framework is operational and incorporates several elements of the revised 2019 IES, certain aspects—such as systematic alignment of IPD, practical experience monitoring, and learning outcomes with the full suite of revised IES—remain partially implemented at the jurisdictional level, particularly where responsibilities are shared with the PCA.

To further strengthen alignment with SMO 2 requirements, CoA RK is encouraged to continue working with the PCA and the Ministry of Finance to ensure full alignment of IPD, professional examinations, and practical experience requirements with the revised 2019 IES, including strengthening mechanisms for monitoring practical experience and ensuring a clear linkage between learning outcomes and assessment.

Current Status: Execute

The Law on Audit Activity of 1998 (as amended in 2020) requires the application of International Standards on Auditing (ISA) as issued by the IAASB and translated into Kazakh and Russian. Under the Law, the Ministry of Finance is responsible for the translation of ISA into Kazakh, while the Chamber of Auditors of the Republic of Kazakhstan (CoA RK) supports the availability and dissemination of Russian translations.

As of the date of the assessment, the versions of ISA available in Kazakh and Russian are not fully aligned with the latest IAASB Handbook. Earlier editions of the Handbook (including the 2016–2017 and 2018 versions) have been translated and applied, and more recent standards have been translated on a partial or delayed basis. This indicates that while ISA are adopted in principle, the standards applied in practice are not fully up to date.

CoA RK plays an active role in supporting the implementation of ISA within the jurisdiction. It develops implementation guidance materials, delivers seminars and training sessions to enhance understanding of new and revised standards, and facilitates knowledge sharing through online platforms and professional forums. The chamber also contributes to the international standard-setting process by providing comments on IAASB exposure drafts.

While CoA RK demonstrates strong efforts in supporting implementation and maintaining awareness of ISA, the timeliness and completeness of translations remain a key factor affecting full alignment with international standards. Given that responsibility for adoption and translation is shared with the Ministry of Finance and other stakeholders, CoA RK does not have full control over the adoption process.

To further strengthen alignment with SMO 3 requirements, CoA RK is encouraged to continue working with the Ministry of Finance and the Professional Council on Auditing to promote more timely and comprehensive translation of the latest IAASB pronouncements, and to support mechanisms that ensure auditors have access to the most current standards in practice.

Current Status: Execute

As an accredited organization of auditors, the Chamber of Auditors of the Republic of Kazakhstan (CoA RK) is required by law to establish a Code of Ethics for its members. CoA RK has adopted the 2010 IESBA Code of Ethics for application by its members. While more recent versions of the IESBA Code, including the 2018 and 2020 Handbooks, have been translated and are available in the jurisdiction, these versions have not been formally adopted for application.

To support implementation of ethical requirements, CoA RK conducts seminars and knowledge-sharing activities and incorporates ethics into its continuing professional development (CPD) programs. The chamber also monitors compliance with the Code and refers cases of non-compliance to its investigation and disciplinary mechanisms where appropriate.

CoA RK demonstrates ongoing efforts to raise awareness of ethical requirements and support implementation; however, the applicable version of the Code remains outdated relative to the current IESBA Code. In addition, responsibility for adoption and implementation of ethical requirements is shared across multiple professional organizations within the jurisdiction.

To further strengthen alignment with SMO 4 requirements, CoA RK is encouraged to continue working with the Ministry of Finance and other accredited professional organizations to promote the formal adoption and implementation of the latest version of the IESBA Code, and to support timely translation and dissemination to ensure consistent application across the profession.

Current Status: Execute

The Ministry of Finance adopted accrual-basis International Public Sector Accounting Standards (IPSAS) as national standards for application by public sector entities effective January 1, 2013, and has translated IPSAS into Kazakh in accordance with IFAC Translation Policy, including the 2018 Handbook of International Public Sector Accounting Pronouncements.

The Chamber of Auditors of the Republic of Kazakhstan (CoA RK), while not having direct responsibility for the adoption of public sector accounting standards, has supported the adoption and implementation of IPSAS through its participation in consultative processes with the Ministry of Finance.

Although the majority of CoA RK members operate in the private sector, the chamber undertakes activities to support members working in or engaging with the public sector. These include organizing seminars and training sessions on new and revised IPSAS and contributing to ongoing dialogue with national authorities on IPSAS implementation.

Current Status: Sustain

The Law on Audit Activity of 1998 (as amended in 2020) establishes the framework for investigation and discipline (I&D) of auditors in Kazakhstan. Accredited professional auditing organizations, including the Chamber of Auditors of the Republic of Kazakhstan (CoA RK), are responsible for establishing and operating I&D mechanisms for their members, under the oversight of the Ministry of Finance.

CoA RK has established investigation and disciplinary procedures to address professional misconduct. The chamber reports that it monitors compliance with professional standards, including ethical requirements, and refers cases of non-compliance to its investigation and disciplinary committees. Sanctions may be imposed in accordance with its internal regulations and applicable legislation.

While CoA RK demonstrates that an I&D system is in place and operational, responsibility for enforcement is shared with other stakeholders in the jurisdiction, and publicly available information on the structure, processes, and outcomes of the system remains limited. In particular, information regarding the independence of the investigative and disciplinary processes, the availability of an appeals mechanism, and the publication of results is not fully transparent.

To further strengthen alignment with SMO 6 requirements, CoA RK is encouraged to continue enhancing the transparency and documentation of its I&D processes, including clarifying procedures, strengthening public interest considerations, and ensuring alignment with SMO 6 best practices across all components of the system.

Current Status: Execute

The Law on Accounting and Financial Reporting of 2007 (as amended) establishes the financial reporting framework in Kazakhstan and mandates the application of International Financial Reporting Standards (IFRS) for public interest entities, including listed companies, financial institutions, and large entities. The Ministry of Finance and the National Bank of Kazakhstan are responsible for the adoption and implementation of accounting standards in the jurisdiction.

IFRS Standards, as issued by the IASB, have been adopted and incorporated into the legal framework, and are required for a broad range of entities. In addition, IFRS for SMEs is also adopted and applied by eligible entities.

The Chamber of Auditors of the Republic of Kazakhstan (CoA RK) does not have direct responsibility for the adoption of financial reporting standards. However, it supports the implementation of IFRS through its professional activities, including providing training, seminars, and guidance to its members, as well as participating in stakeholder dialogue with regulators.

CoA RK’s activities contribute to the consistent application of IFRS in the jurisdiction and support the overall financial reporting framework. Accordingly, fulfillment is assessed as Sustain.

Current Status: Sustain