Uzbekistan

The financial reporting and auditing framework in the Republic of Uzbekistan is established under the Law “On Accounting,” the Law “On Auditing Activities,” and related presidential decrees and resolutions of the Cabinet of Ministers. These legal acts set out requirements for maintaining accounting records, preparing financial statements, and conducting statutory audits.

Presidential Decree No. PP-4611 dated February 24, 2020, “On Additional Measures for the Transition to International Financial Reporting Standards,” initiated a phased transition to International Financial Reporting Standards for specified categories of entities, including commercial banks, insurance organizations, joint-stock companies, and large taxpayers. Subsequent regulations issued by the Ministry of Finance formally recognized IFRS and related interpretations for application in Uzbekistan.

The Law “On Auditing Activities” requires audits to be conducted in accordance with International Standards on Auditing as recognized for application in Uzbekistan. Cabinet of Ministers Resolution No. 171 dated April 11, 2022 established the procedure for recognizing international auditing standards, including translation, expert review, and official approval for use in the jurisdiction.

The Ministry of Finance of the Republic of Uzbekistan is the authorized state body responsible for regulating auditing activities, recognizing international standards for application, conducting external quality control of audit organizations, and overseeing compliance with applicable legislation. Audit organizations must be registered in the official Register of Audit Organizations and comply with applicable international standards and national regulatory requirements, with quality control reviews conducted in cooperation with recognized republican public professional organizations of auditors.

In the Republic of Uzbekistan, the audit profession is regulated under the Law “On Auditing Activities” and related presidential decrees and ministerial regulations. The Ministry of Finance of the Republic of Uzbekistan serves as the authorized state body responsible for the regulation and oversight of audit activities.

Under the Law “On Auditing Activities,” the Ministry of Finance is responsible for certifying auditors; establishing professional education, examination, and qualification requirements; licensing auditors and audit organizations; maintaining official registers of auditors and audit organizations; establishing continuing professional development requirements; conducting inspections of audit firms; and suspending or revoking licenses and certificates in cases of non-compliance or professional misconduct.

Requirements for entry into the audit profession are established in legislation. Candidates are required to hold a university degree in economics or a related field, complete a minimum period of practical experience, undergo professional training at accredited training centers, and pass qualifying examinations administered under the authority of the Ministry of Finance. Following certification, auditors are subject to mandatory continuing professional development requirements. Audit organizations must be registered in the official Register of Audit Organizations to provide statutory audit services.

Technical standards applicable to auditors are established through legislation and regulatory acts. International Standards on Auditing, as recognized for application in the jurisdiction, are required for statutory audits. Ethical requirements are established through reference to the International Code of Ethics for Professional Accountants and relevant national provisions.

Professional accountancy organizations, including the Chamber of Auditors of Uzbekistan and the National Association of Accountants and Auditors of the Republic of Uzbekistan, participate in the professional framework by contributing to the development of education and training programs, supporting examination and qualification processes, cooperating with the Ministry of Finance on quality assurance activities, and maintaining investigation and disciplinary arrangements for their members. Membership in a professional accountancy organization is required for auditors where stipulated under current regulatory reforms.

Accountants who are not engaged in statutory audit activities are not subject to mandatory regulation by a professional accountancy organization. Chief accountants of entities subject to mandatory audit are regulated under the Law “On Accounting” and must meet prescribed education and practical experience requirements. Legislative amendments have introduced initial professional development and continuing professional development requirements for chief accountants, including a minimum annual CPD requirement. The Central Bank of the Republic of Uzbekistan may establish additional requirements for accountants serving entities under its supervision.

Professional accountancy organizations also offer voluntary certification programs for accountants and establish education, ethical, and continuing professional development requirements for their members. These arrangements operate alongside the statutory framework administered by the Ministry of Finance

Audit oversight in the Republic of Uzbekistan is conducted within a public regulatory framework led by the Ministry of Finance of the Republic of Uzbekistan. There is no separate independent audit oversight authority distinct from the Ministry.

Under the Law “On Auditing Activities,” the Ministry of Finance is responsible for certifying auditors; establishing professional education, examination, and qualification requirements; licensing auditors and audit organizations; maintaining the Register of Auditors and Audit Organizations; establishing continuing professional development requirements; conducting inspections of audit firms; and suspending or revoking licenses and certificates in cases of non-compliance or professional misconduct.

External quality control reviews of audit organizations are conducted under the authority of the Ministry of Finance in cooperation with recognized republican public professional organizations of auditors, including the Chamber of Auditors of Uzbekistan. The oversight framework provides for inspections of audit firms performing mandatory audits and establishes requirements related to documentation, reporting, and corrective actions.

Findings arising from inspections and quality control reviews may result in regulatory or disciplinary measures in accordance with applicable legislation. The framework therefore establishes a link between quality assurance review outcomes and investigation and disciplinary procedures.

Professional accountancy organizations participate in supporting the implementation of standards, contributing to professional education and training programs, and maintaining investigation and disciplinary arrangements for their members. Ultimate authority for audit licensing, registration, and oversight remains with the Ministry of Finance.

The Chamber of Auditors (ChAUz)

ChAUz was formally established on August 9, 2000 by the Ministry of Justice of the Republic of Uzbekistan as a voluntary membership organization with the mission of supporting the development of auditors’ professional expertise and protecting their professional interests. As a professional organization of auditors, the Chamber develops training programs for auditors, provides input to the relevant legislative acts, establishes training centers for auditors, develops guidance materials, conducts quality assurance (QA) reviews of its members, investigates and disciplines its members, holds conferences and seminars on accounting matters, and develops and promotes the Code of Professional Ethics for auditors. ChAUz is an Associate of IFAC.

The Federation of Accountants of Uzbekistan (FAU)

FAU, formerly known as the Federation of Accountants, Auditors and Consultants, was established in March 2014 as a voluntary membership organization to unite accountants in business. According to its Charter, its purpose is to assist with the development of the accounting profession and the adoption and implementation of international standards. FAU is not a member of IFAC.

The National Association of Accountants and Auditors (NAAA Uz)

NAAA Uz was founded in 1992 as a voluntary membership organization and is one of the oldest professional organizations in the Republic of Uzbekistan, uniting both accountants and auditors. Its mission is to assist with the development of the accountancy profession and the adoption and implementation of international standards. The mandate of NAAA Uz is to provide assistance to its members by carrying out educational and continuing professional development programs, maintaining a QA review program for its member audit firms, investigating and disciplining its members, providing consulting services, and advising the regulator on the accounting and auditing legislation. In addition to being an Associate member of IFAC, the NAAA Uz is an associate member of the Asian-Oceanian Standards Setters Group (AOSSG).

In the Republic of Uzbekistan, the quality assurance review system for statutory audits is established under the Law “On Auditing Activities” and related regulatory acts. The Ministry of Finance of the Republic of Uzbekistan is the authorized body responsible for regulating audit activities and conducting external quality control reviews of audit organizations performing mandatory audits.

Under the current framework, audit organizations subject to mandatory audit requirements undergo external quality control inspections conducted under the authority of the Ministry of Finance, in cooperation with recognized republican public professional organizations of auditors, including the Chamber of Auditors of Uzbekistan. The quality assurance process includes inspection of audit documentation, issuance of written reports, and follow-up on corrective actions. Inspection outcomes may result in regulatory or disciplinary measures in accordance with applicable legislation.

Professional accountancy organizations have also established quality assurance review systems applicable to their members. These systems are intended to align with international quality control standards and operate within the broader state oversight framework led by the Ministry of Finance.

While a quality assurance review system is established and operational for audit organizations performing mandatory audits, available information does not fully demonstrate incorporation of all the requirements of SMO 1. In particular, the extent to which the system incorporates the most current International Standards on Quality Management, applies cycle-based review requirements consistent with SMO 1 benchmarks, and provides for fully independent oversight mechanisms is not fully evidenced at the jurisdiction level.

Accordingly, although a quality assurance review system exists and is operational for mandatory audits, it does not fully incorporate all the requirements of SMO 1. Quality assurance in the Republic of Uzbekistan is therefore assessed as partially adopted.

Current Status: Partially Adopted

The Law “On Auditing Activities” authorizes the Ministry of Finance of the Republic of Uzbekistan to establish initial professional development and continuing professional development requirements for statutory auditors. The Ministry of Finance is responsible for the certification of auditors and operates training and examination programs in support of the qualification process.

To qualify as an auditor, candidates are required to hold a university degree in economics or a related field, complete a minimum of three years of practical experience, undergo professional training at accredited training centers, and pass qualifying examinations administered under the authority of the Ministry of Finance. Certain holders of international professional qualifications may be exempt from specific training requirements. Certified auditors are subject to mandatory continuing professional development requirements established by the Ministry.

Chief accountants of entities subject to mandatory audit are regulated under the Law “On Accounting,” which prescribes education, practical experience, and minimum annual continuing professional development requirements. The Central Bank of the Republic of Uzbekistan establishes additional requirements for chief accountants serving entities under its supervision.

Universities provide the foundational education for aspiring professional accountants. However, no formal evidence has been provided demonstrating that university curricula or the Ministry’s certification and training framework have been comprehensively benchmarked against the International Education Standards issued by IFAC.

Professional accountancy organizations, including the Chamber of Auditors of Uzbekistan, offer voluntary certification programs and establish continuing professional development requirements for their members. These programs operate alongside the statutory framework but do not constitute jurisdiction-level adoption of the International Education Standards.

While elements of the national education and certification framework align with certain aspects of the International Education Standards, the IES in their entirety in effect at the time of this assessment have not been formally adopted or demonstrably incorporated for all aspiring and professional accountants in the Republic of Uzbekistan. Accordingly, the International Education Standards are assessed as partially adopted.

Current Status: Partially Adopted

The Law “On Auditing Activities” authorizes the Ministry of Finance of the Republic of Uzbekistan to establish and enforce auditing standards applicable in the jurisdiction. Historically, national auditing standards issued by the Ministry of Finance were based on International Standards on Auditing in effect as of 2008.

Subsequent legislative and regulatory reforms have expressed an intention to align auditing practices with ISA. Presidential Decree No. 1438 introduced the application of ISA for listed companies, and Presidential Resolution No. 3946 of 2018 required audits to be conducted in accordance with ISA as translated into Uzbek and published by the Ministry of Finance.

Translations of ISA have been prepared with the involvement of professional organizations and made available in Uzbek and Russian. However, available information indicates that the standards in effect reflect earlier editions of ISA and do not demonstrate that the full suite of ISA in effect at the time of this assessment, including revisions issued from 2018 onward and the International Standards on Quality Management, have been formally adopted and made effective for application in the jurisdiction.

As the auditing standards currently applied in Uzbekistan are based on pre-2018 versions of ISA, and adoption of the complete and current ISA suite cannot be demonstrated, the International Standards on Auditing are assessed as not adopted

Current Status: Not Adopted

There is no legal or regulatory requirement in the Republic of Uzbekistan mandating the application of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants. The Law “On Auditing Activities” includes limited ethical provisions applicable to auditors; however, it does not formally adopt the IESBA Code at the jurisdiction level.

In the absence of statutory adoption, professional accountancy organizations have introduced ethical requirements for their members on a voluntary basis. In 2010, the Chamber of Auditors of Uzbekistan and the National Association of Accountants and Auditors of the Republic of Uzbekistan adopted a joint Code of Ethics for their members that was based on the 2008 version of the IESBA Code.

No evidence has been provided demonstrating that the 2018 Restructured Code or subsequent revisions of the IESBA Code have been adopted, either through legislation or by professional accountancy organizations. In addition, ethical requirements established by professional organizations apply only to their members and do not extend to all professional accountants operating within the jurisdiction.

As the International Code of Ethics for Professional Accountants in effect at the time of this assessment has not been adopted at the jurisdiction level, and existing ethical requirements are based on a pre-2018 version of the Code with limited scope of application, the IESBA Code is assessed as not adopted in the Republic of Uzbekistan.

Current Status: Not Adopted

Public sector accounting in the Republic of Uzbekistan is regulated by national public sector accounting standards established by the Ministry of Finance of the Republic of Uzbekistan. As part of broader public financial management reform initiatives, the Government has undertaken efforts to align national public sector accounting practices with international standards.

Under the Budget System Reform Project, implemented in cooperation with international development partners, National Public Sector Accounting Standards were developed with the objective of convergence toward International Public Sector Accounting Standards. During 2013–2014, the development of a set of national standards aligned with IPSAS was announced.

However, available information does not demonstrate formal adoption of International Public Sector Accounting Standards as issued by the IPSASB. In addition, there is no evidence confirming that accrual-based IPSAS in effect at the time of this assessment have been adopted or are required for application by public sector entities in the jurisdiction.

While the Government has expressed commitment to progressing toward IPSAS adoption, national public sector accounting standards remain in effect, and full incorporation of IPSAS in force has not been demonstrated. Accordingly, the International Public Sector Accounting Standards are assessed as not adopted in the Republic of Uzbekistan.

Current Status: Not Adopted

Professional accountancy organizations in the Republic of Uzbekistan have established 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 I&D systems in accordance with their bylaws and internal regulations.

Available assessments indicate that the I&D 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.

While investigation and disciplinary mechanisms are in place for members of certain professional accountancy organizations, these arrangements do not constitute a comprehensive system covering all professional accountants in the jurisdiction and do not fully align with the requirements of SMO 6. Accordingly, investigation and discipline in the Republic of Uzbekistan are assessed as partially adopted.

Current Status: Partially Adopted

Financial reporting in the Republic of Uzbekistan is governed by the Law “On Accounting” of 1996, as amended, which establishes basic accounting and bookkeeping requirements for legal entities, with the exception of banks and credit institutions. The Law authorizes the Ministry of Finance of the Republic of Uzbekistan to establish accounting standards applicable to 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 IFRS.

Accounting requirements for banks and credit institutions are established by the Central Bank of the Republic of Uzbekistan under the Law “On Banks and Banking Activity” of 1996. In 2004, the Central Bank adopted IFRS in effect at that time for application by entities under its supervision. These standards have not been updated to incorporate subsequent changes to IFRS, and prudential reporting requirements established by the Central Bank do not fully align with IFRS requirements.

Presidential reforms issued in 2018 permit the use of IFRS by listed companies and indicate an intention to require IFRS for such entities beginning in 2022. However, available information does not demonstrate that IFRS as issued by the International Accounting Standards Board have been formally adopted through a defined due process or made fully effective for application in the jurisdiction.

International Financial Reporting Standards corresponding to the 2013 edition were translated into Uzbek by the National Association of Accountants and Auditors of the Republic of Uzbekistan. As of the date of this assessment, neither the Ministry of Finance nor the Central Bank has formally adopted the translated standards, although their use has been recommended. In practice, accountants and auditors commonly refer to the Russian translation of IFRS.

As financial reporting standards applied in Uzbekistan are based on earlier versions of IAS and IFRS, and adoption of the complete and current IFRS suite in effect at the time of this assessment cannot be demonstrated, International Financial Reporting Standards are assessed as not adopted in the Republic of Uzbekistan.

Current Status: Not Adopted

Relevant Organizations

• National Association of Accountants and Auditors of Uzbekistan (NAAA Uz)
• Chamber of Auditors (ChAUz)
• Central Bank of Uzbekistan
• Ministry of Finance of Uzbekistan

Relevant Legislation

• Law on Auditing Activity of Republic of Uzbekistan, 1992 (in Russian)
• Ministry of Finance Regulation on Issuance of Auditor Qualification Certificate, 2000 (as amended 2016) (in Russian)
• Regulation on the Certification of Accountants, 2015 (in Russian)
• Law on Accounting No. 279-I, 1996 (as amended 2016) (in Russian)

Relevant Publications

• ChAUz, SMO Action Plan, September 2019.
• Deloitte, Doing Business in Uzbekistan, 2016.
• IFRS Foundation, “IFRS Application around the World, Jurisdictional Profile: Uzbekistan,” June 2016.
• Ministry of Finance, Public Financial Management Reform Strategy 2007–2018.
• Nordea, Accounting Rules in Uzbekistan, July 2018.
• United Nations Development Programme, Improving the System of Accounting and Reporting for the Public Sector on the Basis of the IPSAS, September 2015.
• World Bank, Report on the Observance of Standards and Codes, Accounting and Auditing: Uzbekistan, 2008.