Union of Accountants and Auditors

With no direct responsibility for the establishment or operation of a quality assurance (QA) review system in the Kyrgyz Republic, the Union of Accountants and Auditors (UAA) supports the development of QA arrangements led by the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce.

Under the Law on Auditing Activities No. 147 of December 3, 2021, responsibility for the QA system rests with the state regulator. As noted in the World Bank’s 2022 Report on the Observance of Standards and Codes (ROSC), implementation of QA arrangements under the revised legal framework remains in progress, including the operationalization of review processes and alignment with international best practices.

Within the scope of its authority, UAA supports its members in understanding and applying quality control standards. The organization incorporates quality control topics into its continuing professional development (CPD) programs and provides guidance to members engaged in audit practice. UAA has also engaged in discussions with the regulator regarding the potential involvement of professional accountancy organizations in QA processes and continues to offer its technical expertise.

UAA participates in regional initiatives, including cooperation within the Eurasian Economic Union, which includes provisions related to audit quality and quality assurance. These activities contribute to strengthening awareness of international requirements and promoting convergence with good practices.

While UAA does not have direct responsibility for QA system design or implementation, it demonstrates an ongoing commitment to supporting high-quality audit practices and to promoting the adoption and implementation of international standards within the jurisdiction.

Current Status: Sustain

The Union of Accountants and Auditors (UAA) does not have direct responsibility for establishing initial professional development (IPD) and continuing professional development (CPD) requirements in the Kyrgyz Republic, which are set in legislation and implemented by the Ministry of Education and Science, universities, and the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce. However, UAA actively contributes to the development of the accountancy education system through its participation in working groups and collaboration with key stakeholders.

Historically, UAA has offered a voluntary certification scheme through the Certified Accounting Practitioner (CAP) and Certified International Professional Accountant (CIPA) designations. While these programs were not fully aligned with the latest International Education Standards (IES), significant progress has been made in recent years.

A key development has been the creation of a new three-level professional qualification aligned with the 2019 IES, developed under the Strengthening the Capacity of the Accountancy Profession in the Kyrgyz Republic (2016–2020) project implemented by the Institute of Chartered Accountants in England and Wales (ICAEW) with funding from the UK Department for International Development (DFID). UAA has played an active role in the development of the syllabus and learning materials and is expected to administer the qualification. The framework is designed to integrate with university education and the national audit certification process.

UAA continues to work with the state regulator to support recognition of the qualification for audit certification purposes and is strengthening its governance and operational capacity to administer the program effectively. In addition, UAA is taking steps to align its CPD policies and programming with IES 7 and to support ongoing professional development for its members.

While accountancy education at the national level is not yet fully aligned with IES, UAA demonstrates a proactive role in advancing alignment and supporting implementation within the scope of its authority.

UAA is encouraged to continue working closely with the Ministry of Education and Science, universities, and the state regulator to support full alignment of national education requirements with the latest IES, including the effective implementation and recognition of the new qualification framework. Strengthening its capacity to administer the qualification and expanding engagement with universities to embed the syllabus into academic programs will be critical. UAA should also continue updating its CPD system in line with IES 7 and monitor developments in professional competencies to ensure its programs remain aligned with evolving international standards.

Current Status: Execute

The Union of Accountants and Auditors (UAA) does not have direct responsibility for the adoption or enforcement of International Standards on Auditing (ISA) in the Kyrgyz Republic, which is the responsibility of the Government and the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce.

As noted in the jurisdictional assessment, ISA are required in principle; however, the standards applied in practice are based on an outdated version of the IAASB Handbook, and there is no clear evidence that the most recent ISA have been formally adopted and implemented.

Within the scope of its authority, UAA supports the implementation of auditing standards by its members. The organization incorporates auditing standards and related topics into its continuing professional development (CPD) programs and provides guidance to members engaged in audit practice. UAA also participates in regional initiatives, including cooperation within the Eurasian Economic Union, which addresses issues related to audit regulation and quality.

UAA engages with the state regulator and other stakeholders on matters affecting the profession, including discussions related to professional qualifications and audit practices. Through these activities, UAA contributes to raising awareness of international standards and promoting their adoption and implementation.

UAA is encouraged to continue supporting its members in the implementation of ISA and to strengthen its role in advocating for the adoption of the most recent IAASB Handbook in the Kyrgyz Republic. This may include engaging with the regulator to promote timely translation and adoption of updated standards, enhancing CPD offerings to reflect the latest ISA and quality management standards, and disseminating guidance and implementation tools to support members in applying updated requirements in practice.

Current Status: Review & Improve

The Union of Accountants and Auditors (UAA) does not have direct responsibility for the adoption of ethical requirements at the jurisdictional level. While the Law on Auditing Activities No. 147 of December 3, 2021 establishes a basis for ethical requirements for auditors, there is no clear evidence that the latest International Code of Ethics for Professional Accountants issued by the IESBA has been formally adopted and implemented in the Kyrgyz Republic.

At the organizational level, UAA requires its members to comply with a Code of Ethics based on the 2010 version of the IESBA Code, adopted in 2014. While this represents an important step, the Code applied by UAA is not aligned with the latest version of the IESBA Code. UAA has indicated plans to adopt a more recent version of the Code; however, there is no publicly available evidence confirming that this has been completed.

UAA promotes the adoption of the IESBA Code at the jurisdictional level and has participated in consultations on legislative reforms, including advocating for the inclusion of ethical requirements in the audit law. The organization also incorporates ethics-related topics into its continuing professional development (CPD) programs and has contributed to the development of a new professional qualification in which ethical principles are embedded across modules.

UAA’s strategy includes a focus on strengthening ethical compliance and supporting members in understanding and applying ethical requirements. However, based on available information, processes for monitoring compliance with ethical requirements and linking them to investigation and disciplinary mechanisms are not yet fully established.

UAA is encouraged to prioritize the adoption and implementation of the latest IESBA Code for its members and to establish a clear process for ongoing updates as the Code evolves. Strengthening mechanisms to monitor compliance with ethical requirements and linking these to investigation and disciplinary processes will be critical. UAA should also continue to advocate for the adoption of the IESBA Code at the jurisdictional level and expand its support to members through targeted training, guidance, and awareness-raising initiatives to promote consistent application of ethical standards across the profession.

Current Status: Plan

The Union of Accountants and Auditors (UAA) does not have direct responsibility for the adoption or implementation of public sector accounting standards in the Kyrgyz Republic, which falls under the authority of the Ministry of Finance. As noted in the jurisdictional assessment, International Public Sector Accounting Standards (IPSAS) have not been fully adopted, and public sector accounting is based on national standards that are partially aligned with IPSAS.

Within the scope of its authority, UAA has contributed to public sector accounting reforms. The organization reports that it participated in the development of an IPSAS implementation strategy, the revision of the Unified Chart of Accounts for the public sector, and the development of guidance on the application of accounting policies for public sector entities. UAA continues to monitor developments in public sector accounting and engages with stakeholders to identify opportunities to support IPSAS adoption.

UAA has indicated plans to further support the profession through the development and delivery of IPSAS-related training modules for public sector accountants. These efforts are intended to enhance awareness and build capacity in the application of international standards.

While IPSAS have not been adopted at the jurisdictional level, UAA demonstrates an ongoing commitment to supporting their adoption and implementation within the limits of its mandate.

UAA is encouraged to strengthen its role in promoting IPSAS adoption by formalizing and implementing a structured approach to public sector engagement, including delivering IPSAS training programs and expanding outreach to public sector accountants. Clarifying the extent to which public sector accountants are represented within its membership and tailoring support accordingly would enhance impact. UAA should also continue to raise awareness among policymakers and stakeholders on the benefits of adopting IPSAS and disseminate updates on new and revised IPSASB pronouncements to support future alignment with international standards.

Current Status: Review & Improve

The Union of Accountants and Auditors (UAA) does not have direct responsibility for investigation and discipline (I&D) at the jurisdictional level, which is the responsibility of the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic. Under the Law on Auditing Activities No. 147 of December 3, 2021, a framework for I&D of auditors has been established; however, as noted in the jurisdictional assessment, implementation of a comprehensive and fully operational I&D system remains in progress.

At the organizational level, UAA has established an investigation and discipline system for its members. Following the merger with the Chamber of Accountants and Auditors in 2019, UAA has undertaken efforts to update and strengthen its I&D framework, including the development of revised regulations and governance arrangements.

UAA has also engaged with the state regulator to promote the adoption of investigation and disciplinary arrangements aligned with international best practices and has contributed to discussions related to legislative reforms. These efforts demonstrate UAA’s commitment to strengthening I&D mechanisms within the profession.

However, based on available information, UAA’s I&D system is not yet fully aligned with the requirements of SMO 6, and further development is needed to ensure that processes are comprehensive, transparent, and effectively implemented.

UAA is encouraged to continue strengthening its I&D system to achieve full alignment with SMO 6, including formalizing procedures, enhancing governance structures, and ensuring effective implementation and transparency of disciplinary processes. Establishing clear links between ethical requirements and disciplinary mechanisms will be important. UAA should also continue to collaborate with the state regulator to support the development of a robust jurisdiction-wide I&D system and promote alignment with international best practices.

Current Status: Execute

The Union of Accountants and Auditors (UAA) does not have direct responsibility for the adoption of International Financial Reporting Standards (IFRS Accounting Standards) in the Kyrgyz Republic, which is established in legislation. As noted in the jurisdictional assessment, IFRS Accounting Standards as issued by the IASB are required for public interest entities, and IFRS for SMEs is required for other entities within the scope defined by law.

Within the scope of its authority, UAA has played an active role in supporting the adoption and implementation of IFRS in the Kyrgyz Republic. The organization has contributed to legislative reforms and public consultations related to accounting standards and has participated in initiatives to strengthen the financial reporting framework in the jurisdiction.

UAA has also supported the translation of standards, including providing expert input to the translation of IFRS for SMEs into the Kyrgyz language. The organization delivers training programs and continuing professional development (CPD) activities that incorporate IFRS and supports its members through professional education, certification programs, and advisory services related to the application of international standards.

In addition, UAA has contributed to the development of a new professional qualification aligned with international standards, which is expected to further strengthen the capacity of the profession to apply IFRS in practice. The organization also disseminates information on new and revised standards to its members and engages with stakeholders, including regulators and international partners, to promote high-quality financial reporting.

While challenges remain in ensuring timely translation and consistent application of the latest IFRS, UAA demonstrates a sustained and proactive role in supporting the implementation of international financial reporting standards within the jurisdiction.

UAA is encouraged to continue enhancing its support for IFRS implementation by ensuring that its education and CPD programs are regularly updated to reflect the latest IFRS and IFRS for SMEs. Strengthening mechanisms to disseminate updates and practical guidance to members, and continuing to collaborate with regulators and stakeholders to support timely translation and implementation of new standards, will further reinforce the quality of financial reporting in the Kyrgyz Republic.

Current Status: Sustain