Chamber of Auditors of Uzbekistan

Under the Law “On Auditing Activities,” the Ministry of Finance of the Republic of Uzbekistan is responsible for ensuring compliance with licensing requirements for audit organizations, including the establishment of quality control requirements. National auditing standards issued by the Ministry are based on International Standards on Auditing as they existed in 2008.

In accordance with the legislative framework, audit organizations are subject to external quality assurance arrangements, including periodic reviews conducted with the involvement of professional accountancy organizations. The Chamber of Auditors of Uzbekistan has established a quality assurance review system applicable to its members. The system was developed with reference to international practices and incorporates elements of quality control standards, including requirements related to firm-level quality controls.

The Chamber reports that it has conducted regular quality assurance reviews of its member firms and that full reviews are performed on a periodic basis, with additional reviews conducted in response to complaints where necessary. Reviews are carried out by qualified reviewers approved through the Chamber’s governance structures. The Chamber has also supported the development of national quality assurance policies through its participation in consultative bodies under the Ministry of Finance and has contributed to discussions on alignment with SMO 1 requirements.

Legislative amendments introduced in 2018 reassigned responsibility for quality assurance reviews to the Ministry of Finance. In response, the Chamber has indicated its intention to continue cooperating with the regulator in the development and implementation of the revised quality assurance framework.

While quality assurance activities are in place and the Chamber actively supports audit quality through its review system and engagement with the regulator, available information does not demonstrate that all SMO 1 requirements are fully met or that the quality assurance system operates consistently with the most current international quality management standards. Accordingly, fulfillment of SMO 1 by the Chamber of Auditors of Uzbekistan is assessed as partially fulfilled.

The Chamber of Auditors of Uzbekistan should continue to work closely with the Ministry of Finance to support the implementation of a comprehensive quality assurance system aligned with SMO 1, including incorporation of current International Standards on Quality Management, clear review cycle requirements, and transparent reporting and follow-up processes.

Current Status: Execute

Under the Law “On Auditing Activities,” as amended in 2018, the Ministry of Finance of the Republic of Uzbekistan is authorized to establish initial professional development and continuing professional development requirements for auditors and for chief accountants of certain entities. These requirements are implemented through a combination of Ministry-led processes, universities, accredited training centers, and professional accountancy organizations, including the Chamber of Auditors of Uzbekistan.

The Chamber of Auditors of Uzbekistan reports that it cooperates with the Ministry of Finance to support alignment of auditor education and training requirements with the International Education Standards. This cooperation includes participation in consultations and representation on the Ministry’s Consultative Board on Accounting and Auditing, as well as promotion of awareness of the IES using available translated materials. However, limited evidence has been provided demonstrating how the revised IES requirements have been systematically incorporated into national education and certification arrangements.

Members of the Chamber are subject to the continuing professional development requirements established at the jurisdictional level, and compliance with CPD requirements is reportedly reviewed as part of quality assurance processes. The Chamber has indicated that it previously undertook efforts to align practical experience requirements for its members with IES 5 and to monitor fulfillment of those requirements, reporting its observations to the Ministry of Finance. However, the extent to which current practical experience requirements align with the revised IES, including learning outcomes-based approaches, has not been clearly demonstrated.

The Chamber also provides input into auditor training programs delivered by training centers accredited by the Ministry of Finance and participates in voluntary certification initiatives for accountants developed in cooperation with other professional organizations. Available information indicates that training and CPD programs were last substantively amended in 2011, and it is therefore not clear that the most recent revisions to the International Education Standards have been incorporated into education and certification programs.

While the Chamber actively engages with regulators and contributes to education and training activities, further work is required to demonstrate full alignment with the International Education Standards.

The Chamber of Auditors of Uzbekistan should prioritize a comprehensive review of national education, training, and practical experience requirements against the revised International Education Standards, in cooperation with the Ministry of Finance and other relevant stakeholders. This review should result in clearly defined, time-bound actions to address identified gaps and establish a structured process for incorporating new and revised IES into education and certification programs on an ongoing basis.

Current Status: Execute

Under the Law “On Auditing Activities,” as amended in 2018, the Ministry of Finance of the Republic of Uzbekistan holds the legal mandate to establish and enforce auditing standards applicable in the jurisdiction. The Chamber of Auditors of Uzbekistan does not have direct responsibility for the adoption of International Standards on Auditing but has focused its efforts on supporting convergence with international standards and assisting stakeholders involved in the standard-setting process.

The Chamber reports that it has engaged with the Ministry of Finance over an extended period to promote alignment with ISA. In 2008, the Chamber prepared and submitted an ISA Convergence Plan covering the period 2009–2013 and has since cooperated with the Ministry on the development of roadmaps and proposed legislative amendments through its representation on the Ministry’s Consultative Board on Accounting and Auditing. The Chamber has also shared observations arising from quality assurance reviews to inform discussions on audit quality and standard-setting.

In support of the translation of international standards, the Chamber participates in translation and review activities through cooperation with the National Association of Accountants and Auditors of the Republic of Uzbekistan. The most recent complete translation of ISA into Uzbek reported by the Chamber corresponds to the 2013 edition. The Chamber has also disseminated Russian-language translations of ISA through training and professional development activities. However, a persistent gap exists between the most recent ISA issued by the IAASB and the versions available for application by auditors in the jurisdiction.

To support its members in applying the auditing standards in effect, the Chamber reports that it conducts consultations and organizes seminars and workshops addressing ISA, audit methodologies, and issues identified through quality assurance reviews. However, limited evidence has been provided demonstrating systematic or recent activities aligned with the most current international standards.

While the Chamber actively promotes awareness of international auditing standards and participates in translation and advisory processes, the standards currently applied in the jurisdiction are based on earlier versions of ISA, and adoption of the current ISA suite has not been demonstrated.

The Chamber of Auditors of Uzbekistan should continue to work with the Ministry of Finance, other professional accountancy organizations, and academic institutions to support a structured and sustainable approach to the translation and dissemination of current International Standards on Auditing. The Chamber should also strengthen and document its member support activities related to the implementation of new and revised standards, including updating education and training programs to reflect current ISA and related quality management standards.

Current Status: Execute

In the absence of a legal or regulatory requirement mandating the application of a Code of Ethics for professional accountants, professional accountancy organizations in the Republic of Uzbekistan have introduced ethical requirements for their members on a voluntary basis. The Chamber of Auditors of Uzbekistan and the National Association of Accountants and Auditors of the Republic of Uzbekistan have taken the lead in this area through joint initiatives.

In 2005, the Chamber and the National Association adopted a joint Code of Ethics applicable to their members. The Code was subsequently updated to incorporate the requirements of the 2014 IESBA Code of Ethics. While the Chamber has indicated that adoption of later versions of the IESBA Code has been considered, no evidence has been provided demonstrating that the 2018 restructured Code or subsequent revisions have been adopted or implemented for members.

The Chamber reports that it has incorporated ethical requirements into its continuing professional development programs and has disseminated available translations of the IESBA Code to its members. However, limited information has been provided on the extent, frequency, or recent nature of these activities.

While the Chamber promotes ethical conduct among its members and has taken steps to align its ethical framework with earlier versions of the IESBA Code, the most current ethical requirements have not been adopted, and ethical obligations apply only to members of professional accountancy organizations.

The Chamber of Auditors of Uzbekistan should work with the Ministry of Finance and other professional accountancy organizations to develop and implement a time-bound plan for translating and adopting the most recent International Code of Ethics for Professional Accountants for its members. The Chamber should also strengthen member support through targeted training, guidance, and communication activities to promote consistent understanding and application of ethical and independence requirements.

Current Status: Execute

The Chamber of Auditors of Uzbekistan does not have responsibility for establishing public sector accounting standards, which are set by the Ministry of Finance of the Republic of Uzbekistan. International Public Sector Accounting Standards have not been adopted at the jurisdiction level, although public financial management reforms have included discussions on convergence with IPSAS.

The Chamber reports that it has supported efforts to promote awareness of IPSAS through workshops and discussions with the Ministry of Finance, including consideration of potential professional certification programs for public sector accountants in cooperation with international partners. The Chamber has also reported cooperation with the Supreme Audit Institution of Uzbekistan to support preparedness for potential IPSAS implementation, including development of audit methodologies for budget organizations and pilot training activities for staff.

While these activities demonstrate engagement in promoting awareness of international public sector accounting practices, IPSAS have not been adopted in the jurisdiction, and the Chamber’s activities remain limited in scope and primarily advisory in nature.

The Chamber of Auditors of Uzbekistan should clarify and formalize its role in supporting potential IPSAS adoption by developing a structured plan with defined activities and timelines, in coordination with the Ministry of Finance and other stakeholders. This could include targeted training for members involved in public sector work, engagement with academic institutions to promote IPSAS-related education, and support for the translation and dissemination of IPSAS where feasible.

Current Status: Execute

Professional accountancy organizations in the Republic of Uzbekistan maintain investigation and disciplinary arrangements applicable to their respective members. The Chamber of Auditors of Uzbekistan and the National Association of Accountants and Auditors of the Republic of Uzbekistan operate investigation and disciplinary systems in accordance with their bylaws and internal regulations.

Available assessments indicate that the investigation and disciplinary systems maintained by these professional accountancy organizations do not fully incorporate all the requirements of SMO 6. A self-assessment conducted by the National Association of Accountants and Auditors identified gaps in alignment with SMO 6 requirements. Similarly, the Chamber of Auditors of Uzbekistan has reported partial compliance, with gaps primarily related to the scope of the system, disciplinary processes, sanctions, and rights of representation and appeal.

Information regarding investigation and disciplinary arrangements maintained by other professional bodies in the jurisdiction, including the Federation of Accountants of Uzbekistan, is not available. In addition, investigation and disciplinary arrangements established by professional accountancy organizations apply only to their members and do not constitute a comprehensive system covering all professional accountants in the jurisdiction.

While the Chamber of Auditors of Uzbekistan maintains investigation and disciplinary mechanisms for its members and acknowledges areas for improvement, further work is required to demonstrate full alignment with the requirements of SMO 6.

The Chamber of Auditors of Uzbekistan should continue to strengthen its investigation and disciplinary framework by addressing identified gaps related to scope, procedures, sanctions, and rights of representation and appeal, in line with SMO 6 requirements. The Chamber should also consider enhancing transparency and documentation of its processes and coordinating with other professional bodies and regulators to promote consistency and effectiveness across the investigation and discipline framework.

Current Status: Execute

Financial reporting requirements in the Republic of Uzbekistan are established under the Law “On Accounting,” which authorizes the Ministry of Finance of the Republic of Uzbekistan to set accounting standards for private sector entities and state-financed organizations. National Accounting Standards issued by the Ministry of Finance are based on International Accounting Standards as they existed in 2008 and have not been updated to reflect subsequent revisions to International Financial Reporting Standards.

Accounting requirements for banks and credit institutions are established by the Central Bank of the Republic of Uzbekistan. While the Central Bank adopted IFRS in effect at the time for entities under its supervision, these standards have not been updated to incorporate subsequent changes to IFRS, and prudential reporting requirements do not fully align with IFRS requirements. Presidential reforms have expressed an intention to expand the use of IFRS, including for listed companies, but adoption of IFRS as issued by the International Accounting Standards Board has not been formally demonstrated.

The Chamber of Auditors of Uzbekistan does not have responsibility for establishing financial reporting standards but supports awareness and understanding of IFRS among its members through professional development activities, training programs, and dissemination of available translations. The Chamber has participated in discussions related to financial reporting reforms and has supported initiatives aimed at promoting convergence with international standards.

While the Chamber contributes to awareness and capacity building related to IFRS, the standards currently applied in the jurisdiction are based on earlier versions of IAS and IFRS, and the complete and current IFRS suite has not been adopted. Accordingly, fulfillment of SMO 7 by the Chamber of Auditors of Uzbekistan is assessed as partially fulfilled.

The Chamber of Auditors of Uzbekistan should continue to support awareness and understanding of International Financial Reporting Standards among its members and engage with the Ministry of Finance, the Central Bank, and other stakeholders to promote a clear and structured pathway toward adoption of current IFRS. This could include enhanced training activities, support for updated translations, and collaboration on implementation readiness where IFRS adoption is being considered.

Current Status: Execute