Kazakhstan

The accountancy profession in the Republic of Kazakhstan is regulated under the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” and the Law “On Auditing Activity in the Republic of Kazakhstan.” The Ministry of Finance of the Republic of Kazakhstan serves as the primary regulatory authority overseeing accounting and auditing activities in the jurisdiction.

Under the Accounting Law, legal entities providing accounting services are required to be members of a recognized professional accounting organization. Such entities are defined as “accounting organizations” and must maintain membership in a professional accountancy organization accredited by the Ministry of Finance. Individual accountants employed in business entities, government, academia, or other organizations are not required by law to be members of a professional accountancy organization; however, the Law defines professional accountants as individuals who are members of a professional accounting body.

Several professional accounting organizations are officially recognized (accredited) by the Ministry of Finance. These organizations establish their own membership requirements in accordance with their charters and internal regulations, subject to compliance with national legislation.

Auditors and audit firms are regulated under the Law “On Auditing Activity in the Republic of Kazakhstan.” The Ministry of Finance issues licenses to audit firms and maintains a public register of licensed audit organizations. Professional audit organizations are responsible for conducting quality assurance reviews of their member audit firms at least once every three years and are required to submit annual reports on quality assurance activities to the Ministry of Finance. The Ministry retains the authority to conduct inspections of audit firms in cases of alleged violations of legislation.

The Chamber of Professional Accountants of the Republic of Kazakhstan (CPA RK) is one of the professional accountancy organizations operating in the jurisdiction. CPA RK has two categories of membership: full members and associate members. Full members are required to meet specified practical experience, continuing professional development, and ethical requirements. Associate membership is available to individuals and legal entities interested in accounting but who do not yet meet all criteria for full membership.

CPA RK is responsible for establishing ethical requirements for its members, maintaining continuing professional development requirements, and operating an investigative and disciplinary system applicable to its membership.

Audit oversight in the Republic of Kazakhstan is established under the Law “On Auditing Activity in the Republic of Kazakhstan.” The Ministry of Finance of the Republic of Kazakhstan serves as the competent authority responsible for regulating audit activity in the jurisdiction.

The Ministry of Finance issues licenses to audit firms and maintains the official register of licensed audit organizations. It also has the authority to conduct inspections of audit firms in cases of alleged violations of legislation.

The Law permits the establishment of professional audit organizations. These professional bodies are responsible for conducting quality assurance (QA) reviews of their member audit firms at least once every three years. Professional audit organizations are required to submit annual reports to the Ministry of Finance detailing the results of QA reviews, including the number of reviews conducted, the dates of reviews, the names of audit firms that passed or did not pass the review, and the status of follow-up actions.

Accordingly, audit oversight in Kazakhstan operates under a mixed framework in which the Ministry of Finance retains licensing and supervisory authority, while professional audit organizations conduct quality assurance reviews of their members.

The Chamber of Auditors of the Republic of Kazakhstan (CoA RK)

CoA RK, which was established in 1993, is an accredited professional auditing organization in Kazakhstan. It received accreditation as a professional organization of auditors in 2008. The Chamber is a not-for-profit organization comprised of audit firms (associate members) and auditors (full members). Membership is mandatory to practice auditing. The CoA RK’s mandate includes protecting the interest of the auditing profession, managing the education and training of auditors, strengthening audit quality through the operation of a quality assurance review system for members, instituting a Code of Ethics for its members, and establishing an investigative and disciplinary system for members. It is a Member of IFAC and a member of the Eurasian Council of Certified Accountants and Auditors (ECCAA).

The Chamber of Professional Accountants of the Republic of Kazakhstan (CPA RK)

CPA RK was established in 2011 after the reorganization of the Chamber of Professional Accountants and Auditors and obtained its accreditation as a professional organization of accountants in March 2011. Its members are accounting firms and individual accountants. CPA RK’s functions include promoting the interests of the accounting profession, determining educational and training requirements, establishing and fostering compliance with a Code of Ethics, and investigating and disciplining members for professional misconduct and non-compliance with the Chamber’s rules and regulations. The CPA RK is an Associate of IFAC and a member of the ECCAA.

The Collegium of Auditors of the Republic of Kazakhstan (CARK)

CARK, an accredited professional auditing organization in Kazakhstan, was founded in 2007 and is a not-for-profit organization comprised of individual auditors and audit firms.

The Union of Auditors of Kazakhstan (UAK)

UAK was founded in 2012 and received accreditation from the Ministry of Finance in June 2013. Its membership comprises individual auditors, audit firms, and accountants that work in government, banking, and academia.

Quality assurance in the Republic of Kazakhstan is regulated under the Law “On Auditing Activity in the Republic of Kazakhstan.” The Ministry of Finance of the Republic of Kazakhstan serves as the competent authority for regulating audit activity and licensing audit firms.

The Law requires professional audit organizations to conduct quality assurance reviews of their member audit firms at least once every three years. Professional audit organizations are required to submit annual reports to the Ministry of Finance detailing the results of QA reviews, including the number of reviews conducted, the names of firms reviewed, and the outcomes of the reviews. The Ministry of Finance retains the authority to conduct inspections of audit firms in cases of alleged legislative violations.

The quality assurance review system is operational and applies to audit firms conducting mandatory audits. However, publicly available information does not clearly demonstrate that the system fully incorporates all requirements of SMO 1, including comprehensive alignment with the latest International Standards on Quality Management (ISQM 1 and ISQM 2) and all related structural elements of SMO 1.

Accordingly, a QA review system has been established and is operational for mandatory audits; however, full alignment with all SMO 1 requirements cannot be conclusively demonstrated based on available information. At the jurisdiction level, the QA review system is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

Initial and continuing professional development requirements for professional accountants in Kazakhstan are established through the Law “On Accounting and Financial Reporting” and implemented through professional accountancy organizations accredited by the Ministry of Finance. Under the Accounting Law, legal entities providing accounting services are required to be members of a professional accountancy organization, and professional accountancy organizations set membership requirements through their charters and internal regulations.

CPARK reports that it maintains continuing professional development requirements for its members, including a minimum of 120 hours of CPD over a three-year rolling period, and requires practical experience and adherence to ethical requirements as conditions of full membership. These requirements reflect that elements of education, practical experience, assessment, and continuing professional development are present within the jurisdiction’s framework.

However, available information does not demonstrate that the education and development requirements in Kazakhstan meet the requirements of the IES in their entirety in effect as of the time of assessment for all aspiring and professional accountants, nor that they are applied uniformly across the profession given the presence of multiple accredited professional organizations with their own requirements.

Accordingly, while national and professional body requirements reflect elements consistent with the IES framework, they do not demonstrably meet the IES in their entirety for all aspiring and professional accountants. At the jurisdiction level, IES adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

The Law on Audit Activity of 1998 (as amended in 2020) requires application of ISA as issued by the IAASB and translated into Russian and Kazak languages.

Under the Law, the Ministry is responsible for translation of ISA into Kazak language, while the Chamber of Auditors of the Republic of Kazakhstan (CoA RK) ensures availability of the Russian translation.

As of the date of the assessment, the Russian translation of the 2016-2017 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, as well as the Kazakh translation of the 2021 Handbook are being applied.

Current Status: Partially Adopted

The Law on Audit Activity of 1998 (as amended in 2020) and the Law on Accounting and Financial Reporting of 1995 (as amended in 2007) require accredited professional accountancy organizations to establish a Code of Ethics for their members under the oversight of the Ministry of Finance.

Both IFAC member organizations in Kazakhstan—the Chamber of Professional Accountants of the Republic of Kazakhstan (CPA RK) and the Chamber of Auditors of the Republic of Kazakhstan (CoA RK)—have adopted the 2010 IESBA Code of Ethics for application by their members. While the Ministry of Finance has facilitated the translation of more recent versions of the IESBA Code, including the 2020 Handbook, and the CoA RK reports dissemination of the 2023 IESBA Code in English, these versions have not been formally adopted for application within the jurisdiction.

The Union of Auditors of Kazakhstan (UAK), an accredited organization of auditors that is not an IFAC member as of the date of the assessment, reports adoption of the 2018 IESBA Code. It is not clear whether other accredited professional organizations in the jurisdiction have adopted more recent versions of the IESBA Code.

Accordingly, although ethical requirements are established and aligned with earlier versions of the IESBA Code, the applicable standards are not based on the latest version of the Code. Therefore, adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

Public sector accounting standards in the Republic of Kazakhstan are established under the authority of the Ministry of Finance. The Ministry adopted accrual-basis International Public Sector Accounting Standards (IPSAS) effective January 1, 2013.

IPSAS were translated by the Ministry of Finance and implementation was supported through structured training programs. Accountants working in state-owned entities are required to complete IPSAS-related training and certification in accordance with regulations issued by the Ministry.

Accrual-basis IPSAS are applied to public sector entities in Kazakhstan in accordance with national regulations. Available information indicates that IPSAS have been adopted on an accrual basis for public sector financial reporting.

Accordingly, accrual-basis IPSAS have been adopted for application in the public sector.

Current Status: Adopted

The Law on Audit Activity of 1998 (as amended in 2020) and the Law on Accounting and Financial Reporting of 1995 (as amended in 2007) establish the authority of accredited auditing and accounting organizations to investigate and discipline (I&D) their members for non-compliance with applicable standards, ethical requirements, and breaches of professional conduct.

In July 2020, amendments to the Law on Audit Activity further specified that the Professional Council on Auditing (PCA) is responsible for conducting I&D for cases related to public interest entities (PIEs), while accredited professional auditing organizations overseen by the Ministry of Finance continue to conduct I&D for their members in non-PIE cases.

Accredited professional organizations, including the Chamber of Auditors of the Republic of Kazakhstan (CoA RK) and the Union of Auditors of Kazakhstan (UAK), report that they have established I&D systems for their members. The Chamber of Professional Accountants of the Republic of Kazakhstan (CPA RK) has also established a Committee on Disputes to review complaints and disciplinary matters concerning its members.

While I&D mechanisms are established within accredited professional organizations and supported by legislative authority, comprehensive publicly available information is not available to demonstrate that a unified system incorporating all requirements of SMO 6 is established and operational for all professional accountants across the jurisdiction, including confirmation of the operational status of the PCA framework.

Accordingly, investigative and disciplinary systems exist and are operational within accredited professional organizations; however, alignment with SMO 6 requirements for all professional accountants at the jurisdiction level cannot be conclusively demonstrated. Adoption is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

The Law on Accounting and Financial Reporting grants authority to the Ministry of Finance to adopt, through legislative acts, the accounting standards applicable in the preparation of financial statements in the Republic of Kazakhstan.

Under the Law, all large entities and listed companies, banks, insurance companies, and other non-bank financial institutions are required to apply IFRS as issued by the IASB and translated into the Kazakh and Russian languages and published by the authorized body in the Republic of Kazakhstan under a copyright agreement with the IFRS Foundation. As of 2021, the 2015 IFRS Blue Book in Russian, the 2016 IFRS Red Book in Kazakh, and the 2015 IFRS for SMEs have been translated for application in Kazakhstan.

Medium-sized enterprises and state enterprises are required to use either full IFRS or IFRS for SMEs. Small enterprises must choose between full IFRS, IFRS for SMEs, and KNFRS 1, which is based on national tax rules.

While IFRS are required for public interest entities and other large entities, available information indicates that the standards currently translated and made effective in the jurisdiction reflect earlier versions of IFRS. It cannot be demonstrated that IFRS Accounting Standards in effect as of the time of the assessment are adopted and effective for application by all domestic publicly accountable entities.

Accordingly, at the jurisdiction level, IFRS adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

Relevant Organizations

• Chamber of Auditors of the Republic of Kazakhstan (COA RK)
• Chamber of Professional Accountants of the Republic of Kazakhstan (CPA RK)
• Ministry of Finance of the Republic of Kazakhstan
• National Bank of Kazakhstan
• Professional Council on Auditing (PCA)
• Supreme Audit Chamber of the Republic of Kazakhstan

Relevant Legislation

• Law on Audit Activity of the Republic of Kazakhstan (1998, as amended 2020
• HYPERLINK "https://adilet.zan.kz/eng/docs/Z070000234_"Law on Accounting and Financial Reporting of the Republic of Kazakhstan (2007, as amended)

Relevant Publications

• IFRS Foundation, IFRS Standards—Application Around the World Jurisdictional Profile: Kazakhstan, December 2016.
• World Bank / CFRR, Kazakhstan: Report on the Observance of Standards and Codes (ROSC) – Accounting and Auditing