Uzbekistan

The financial reporting and auditing framework in the Republic of Uzbekistan is established under the Law “On Accounting,” the Law “On Auditing Activities,” related presidential decrees, and resolutions of the Cabinet of Ministers. These legal acts establish requirements for the preparation of financial statements, maintenance of accounting records, statutory audits, and regulation of audit activities in the jurisdiction.

The Law “On Accounting” establishes accounting and financial reporting requirements for legal entities in Uzbekistan, while sector-specific regulators establish additional requirements for entities under their supervision, including banks and other financial institutions. 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 (IFRS) for specified categories of entities, including joint-stock companies, commercial banks, insurance organizations, and large taxpayers. Subsequent regulations issued by the Ministry of Economy and Finance formally recognized IFRS and related interpretations for application in the jurisdiction. Other entities continue to apply National Accounting Standards issued by the Ministry.

The Law “On Auditing Activities,” as amended, requires statutory audits to be conducted in accordance with International Standards on Auditing (ISA) as recognized for application in Uzbekistan. Cabinet of Ministers Resolution No. 171 dated April 11, 2022 established procedures for the recognition, translation, expert review, and official approval of international auditing standards for application in the jurisdiction. ISA are required for all statutory audits.

The Ministry of Economy and Finance of the Republic of Uzbekistan is the authorized state body responsible for regulating auditing activities, recognizing international standards for application, maintaining the register of auditors and audit organizations, overseeing compliance with applicable legislation, and conducting external quality control inspections of audit organizations. Audit organizations are required to be registered in the official Register of Audit Organizations and comply with applicable international standards and national regulatory requirements.

The Republic of Uzbekistan has not adopted the IFRS for Small and Medium-sized Entities (IFRS for SMEs). Small and medium-sized entities generally apply National Accounting Standards established by the Ministry of Economy and Finance.

In the Republic of Uzbekistan, the audit profession is regulated under the Law “On Auditing Activities” and related presidential decrees, Cabinet of Ministers resolutions, and ministerial regulations. The Ministry of Economy and Finance of the Republic of Uzbekistan (MEF) is the authorized state body responsible for the regulation and oversight of audit activities.

Under the Law “On Auditing Activities,” the MEF is responsible for maintaining the official registers of auditors and audit organizations, overseeing compliance with applicable legislation, conducting external quality control of audit organizations jointly with national public associations of auditors, and applying enforcement measures in cases of non-compliance. The Central Bank of the Republic of Uzbekistan establishes additional requirements for auditors authorized to audit banks and maintains the relevant register for bank auditors.

Requirements for entry into the audit profession are established in legislation. An auditor must hold an auditor qualification certificate, which confirms the right to provide audit services as part of an audit organization. Qualification certificates are issued by republican public associations of auditors following successful completion of the qualification examination, except for certificates related to bank audits, which fall under the authority of the Central Bank. Following certification, auditors are required to complete annual professional development courses under programs approved by republican public associations of auditors. Audit organizations must be included in the official Register of Audit Organizations to provide statutory audit services.

Technical standards applicable to auditors are established through legislation and regulatory acts. The Law “On Auditing Activities” recognizes International Standards on Auditing (ISA), international standards on quality control and quality management, and other standards issued by the International Auditing and Assurance Standards Board for application in audit activities. Audit organizations are also required to comply with the International Code of Ethics for Professional Accountants and relevant national legal requirements.

Professional accountancy organizations, including the Chamber of Auditors of Uzbekistan (ChAUz) and the National Association of Accountants and Auditors of the Republic of Uzbekistan (NAAA Uz), participate in the professional framework through their role as national public associations of auditors. These organizations support the development of the profession by contributing to legislative and methodological initiatives, participating in qualification and professional development processes, cooperating with the MEF on external quality control, maintaining member registers, and operating investigation and disciplinary arrangements for their members.

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. The head of an entity subject to mandatory audit must ensure that the head of the accounting service completes annual training. The Central Bank establishes additional requirements for heads of accounting services of banks and other credit organizations.

Professional accountancy organizations also offer voluntary certification, training, and continuing professional development programs for accountants and establish education, ethical, and disciplinary requirements for their members. These arrangements operate alongside the statutory framework administered by the MEF and other competent authorities.

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

Under the Law “On Auditing Activities,” the MEF is responsible for maintaining the registers of auditors and audit organizations, overseeing compliance with applicable auditing legislation, conducting external quality control inspections of audit organizations, and applying enforcement measures in cases of non-compliance. The Central Bank of the Republic of Uzbekistan exercises additional oversight responsibilities in relation to audit organizations authorized to audit banks and other credit institutions.

External quality control inspections are conducted under the authority of the MEF in cooperation with republican public associations of auditors, including the Chamber of Auditors of Uzbekistan (ChAUz) and the National Association of Accountants and Auditors of Uzbekistan (NAAA Uz). The framework provides for inspections of audit organizations performing statutory audits and establishes requirements related to audit documentation, reporting obligations, and implementation of corrective measures.

The Law “On Auditing Activities” also recognizes international standards on quality control and quality management issued by the International Auditing and Assurance Standards Board for application in the jurisdiction. Audit organizations are required to establish and maintain systems of quality management in accordance with applicable international standards and regulatory requirements.

Findings arising from inspections and quality control reviews may result in regulatory, disciplinary, or other enforcement 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 support the implementation of international standards through training, methodological support, continuing professional development activities, and member oversight arrangements. Ultimate authority for the registration, oversight, and enforcement of audit organizations remains with the MEF and other competent state authorities.

The Chamber of Auditors (ChAUz)

ChAUz was established in 2000 as a voluntary professional accountancy organization representing auditors in the Republic of Uzbekistan. ChAUz operates as a republican public association of auditors and participates in the development of the audit profession and implementation of international standards in the jurisdiction.

ChAUz supports the profession through the delivery of continuing professional development programs, organization of training and methodological activities, participation in qualification and professional development processes, development of guidance materials, and cooperation with state authorities on matters related to auditing legislation and professional regulation. The organization also participates in external quality control activities in cooperation with the Ministry of Economy and Finance and maintains investigation and disciplinary mechanisms for its members. ChAUz is an Associate member of the International Federation of Accountants (IFAC).

The Federation of Accountants of Uzbekistan (FAU)

FAU, formerly known as the Federation of Accountants, Auditors and Consultants, was established in 2014 as a voluntary membership organization representing accountants and finance professionals in business and industry.

According to its charter, FAU’s objectives include supporting the development of the accountancy profession, promoting the adoption and implementation of international standards, and enhancing the professional competencies of accountants through training and educational activities. FAU is not a member of IFAC.

The National Association of Accountants and Auditors (NAAA Uz)

NAAA Uz was established in 1992 and is one of the oldest professional accountancy organizations in the Republic of Uzbekistan, representing both accountants and auditors on a voluntary membership basis.

NAAA Uz supports the development of the profession through continuing professional development and certification programs, methodological and advisory services, participation in qualification and professional development activities, operation of quality assurance review arrangements for member audit firms, and maintenance of investigation and disciplinary procedures for members. The organization also contributes to the development of accounting and auditing legislation and promotes the adoption and implementation of international standards in the jurisdiction.

NAAA Uz is an Associate member of IFAC and an associate member of the Asian-Oceanian Standard-Setters Group.

In the Republic of Uzbekistan, the quality assurance review system for statutory audits is established under the Law “On Auditing Activities” and related regulations. The Ministry of Economy and Finance of the Republic of Uzbekistan (MEF) is the authorized state body responsible for regulating audit activities and conducting external quality control of audit organizations jointly with national public associations of auditors.

The Law “On Auditing Activities” requires audit organizations to establish internal quality control arrangements and comply with international auditing standards, international quality control standards, and the International Code of Ethics for Professional Accountants. The law also provides that external quality control is carried out to identify and prevent violations of legislation and auditing standards. Cabinet of Ministers Resolution No. 538 dated September 28, 2022 further establishes the procedure for external quality control, including risk analysis, inspection procedures, publication of identified violations, and follow-up measures.

Available information indicates that the quality assurance review system is operational for audit organizations, including those performing mandatory audits. However, the framework does not fully evidence incorporation of all SMO 1 requirements, including review-cycle requirements and the extent to which the latest International Standards on Quality Management are fully adopted and implemented in practice.

Current Status: Partially Adopted

In the Republic of Uzbekistan, education and qualification requirements for statutory auditors are established under the Law “On Auditing Activities” and related regulations. The framework requires auditors to hold an auditor qualification certificate, pass a qualification examination, and complete annual professional development courses. Qualification certificates are issued by republican public associations of auditors, except for certificates related to bank audits, which are issued under the authority of the Central Bank of the Republic of Uzbekistan.

The Law “On Accounting” establishes requirements for heads of accounting services of entities subject to mandatory audit, including higher education, prescribed practical experience, and annual training. The Central Bank establishes additional requirements for heads of accounting services of banks and other credit organizations.

Professional accountancy organizations, including the Chamber of Auditors of Uzbekistan (ChAUz), also provide training, certification, and continuing professional development programs for members. These programs support professional competence but operate alongside the statutory framework and do not constitute jurisdiction-level adoption of the International Education Standards (IES).

Accordingly, while elements of the national education, certification, and continuing professional development framework align with certain IES requirements, the framework does not fully demonstrate adoption of the IES in their entirety at the jurisdiction level.

Current Status: Partially Adopted

The Law On Auditing Activities of the Republic of Uzbekistan of 2021 recognizes International Standards on Auditing (ISA) and related International Auditing and Assurance Standards Board pronouncements as the standards applicable to audit activities in the Republic of Uzbekistan. The law provides that auditing activities are conducted based on auditing standards that are not contrary to national legislation and are posted on the official website of the authorized state body following permission for publication from the International Federation of Accountants.

Presidential Resolution No. PP-3946 of 2018 required measures to recognize ISA, translate them into the state language, and publish them on the websites of the Ministry of Finance and republican public associations of auditors. The IFAC translations database identifies the Uzbek translation of the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements as in progress.

The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities is available in Russian; however, no evidence was identified that the standard has been formally adopted for application in the Republic of Uzbekistan.

Current Status: Partially Adopted

The Law On Auditing Activities of the Republic of Uzbekistan of 2021 requires auditors and audit organizations in the Republic of Uzbekistan to comply with ethical principles and the Code of Ethics for Professional Accountants. The law establishes general ethical requirements related to integrity, objectivity, professional competence, confidentiality, and professional behavior.

The National Association of Accountants and Auditors of Uzbekistan (NAAA Uz) and the Chamber of Auditors of Uzbekistan (ChAUz) jointly developed a Code of Professional Ethics for Auditors based on the 2008 edition of the International Ethics Standards Board for Accountants Code of Ethics. NAAA Uz subsequently translated the 2011 Code into Uzbek.

Accordingly, while ethical requirements exist for auditors and members of professional accountancy organizations, the applicable framework is based on a pre-2018 version of the Code and therefore assessed as Not Adopted.

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 Economy and Finance of the Republic of Uzbekistan. As part of broader public financial management reforms, the Government has developed a roadmap for phased implementation of International Public Sector Accounting Standards (IPSAS), with support from the Asian Development Bank.

The roadmap indicates a transition approach based on adapting IPSAS for use in Uzbekistan. However, available information does not demonstrate that accrual-basis IPSAS, cash-basis IPSAS, or a complete IPSAS Handbook version has been formally adopted for application by public sector entities.

Accordingly, while Uzbekistan has undertaken reforms to align public sector accounting with IPSAS over time, national public sector accounting standards remain in effect and the jurisdiction-level framework does not demonstrate adoption of IPSAS.

Current Status: Not Adopted

Investigation and disciplinary arrangements in the Republic of Uzbekistan are established through both the public regulatory framework for auditors and the member-based systems of professional accountancy organizations. Under the Law On Auditing Activities of the Republic of Uzbekistan of 2021, the Ministry of Economy and Finance of the Republic of Uzbekistan is responsible for oversight of audit organizations and may apply enforcement measures in cases of non-compliance with applicable legislation and professional requirements.

Professional accountancy organizations, including the Chamber of Auditors of Uzbekistan (ChAUz) and the National Association of Accountants and Auditors of Uzbekistan (NAAA Uz), operate investigation and disciplinary systems for their members in accordance with their bylaws and internal regulations. NAAA Uz has established a Disciplinary and Appeals Committee to investigate complaints and recommend disciplinary actions, while ChAUz reports disciplinary and ethics-related activities through its member oversight framework.

Available information indicates that investigation and disciplinary mechanisms are operational for auditors and members of certain professional accountancy organizations. However, the framework does not demonstrate full incorporation of all SMO 6 requirements at the jurisdiction level, including coverage of all professional accountants, consistent due process arrangements, public interest considerations, and transparent publication of outcomes.

Current Status: Partially Adopted

The Law of the Republic of Uzbekistan No. ZRU-404 “On Accounting” establishes the financial reporting framework in the Republic of Uzbekistan and authorizes the Ministry of Economy and Finance of the Republic of Uzbekistan to establish accounting standards for application in the jurisdiction.

Presidential Resolution No. PP-4611 dated February 24, 2020, “On Additional Measures for the Transition to International Financial Reporting Standards,” requires joint-stock companies, commercial banks, insurance organizations, legal entities classified as large taxpayers, and designated state-owned enterprises to prepare financial statements in accordance with International Financial Reporting Standards (IFRS). Other entities may voluntarily prepare financial statements in accordance with IFRS and are exempt from preparing financial statements under national accounting standards when doing so.

Cabinet of Ministers Resolution No. 507 dated August 24, 2020 established the procedure for recognizing IFRS and related interpretations for application in the jurisdiction. According to the IFRS Foundation jurisdiction profile, Uzbekistan has endorsed IFRS Accounting Standards as issued by the International Accounting Standards Board, without modifications, and has established an ongoing process for recognizing new and amended standards.

Accordingly, IFRS Accounting Standards in effect as of the time of the assessment are adopted and required for application by domestic publicly accountable entities in consolidated general purpose financial statements.

The IFRS for Small and Medium-sized Entities Accounting Standard has not been adopted in the Republic of Uzbekistan. National accounting standards continue to apply to entities not required or electing to apply IFRS; however, this does not affect the overall IFRS adoption rating.

Current Status: Adopted

Relevant Organizations

Asian Development Bank

Chamber of Auditors of Uzbekistan

Central Bank of the Republic of Uzbekistan

IFRS Foundation Jurisdiction Profile – Uzbekistan

Ministry of Economy and Finance of the Republic of Uzbekistan

National Association of Accountants and Auditors of Uzbekistan

Relevant Legislation

Cabinet of Ministers Resolution No. 171 of April 11, 2022 “On Measures for Organizing Recognition of International Standards in the Field of Auditing”

Cabinet of Ministers Resolution No. 507 of August 24, 2020 “On Measures for Organizing Activities on International Financial Reporting Standards”

Cabinet of Ministers Resolution No. 538 of September 28, 2022 “On Approval of the Regulation on External Quality Control of Audit Organizations”

Law of the Republic of Uzbekistan “On Accounting”

Law of the Republic of Uzbekistan “On Auditing Activities”

Presidential Resolution No. PP-3946 of September 19, 2018 “On Measures for Further Development of Auditing Activities in the Republic of Uzbekistan”

Presidential Resolution No. PP-4611 of February 24, 2020 “On Additional Measures for Transition to International Financial Reporting Standards”

Relevant Publications

Chamber of Auditors of Uzbekistan 2023 Annual Report

IFRS Foundation Use of IFRS Accounting Standards by Jurisdiction – Uzbekistan