ORDER OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of March 19, 2018 No. 392

About approval of Rules of carrying out internal state audit and financial control

According to the subitem 8) article 14 of the Law of the Republic of Kazakhstan "About the state audit and financial control" PRIKAZYVAYU:

1. Approve:

1) Rules of carrying out internal state audit and financial control by authorized body on internal state audit and financial control according to appendix 1 to this order;

2) Rules of carrying out internal state audit and financial control of internal audit by services according to appendix 2 to this order.

2. To department of methodology of financial accounting and audit of the Ministry of Finance of the Republic of Kazakhstan (Bekturova A. T.) in the procedure established by the legislation to provide:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this order the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) placement of this order on Internet resource of the Ministry of Finance of the Republic of Kazakhstan;

4) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Ministry of Finance of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1), 2) and 3) of this Item.

3. This order becomes effective after ten calendar days from the date of its first official publication.

It is approved Chairman of Calculating committee on control of execution of the republican budget March 27, 2018

N. N. Godunova

Appendix 1

to the Order of the Minister of Finance of the Republic of Kazakhstan of March 19, 2018 No. 392

Rules of carrying out internal state audit and financial control by authorized body on internal state audit and financial control

Chapter 1. General provisions

1. These rules of carrying out internal state audit and financial control by authorized body on internal state audit and financial control (further – Rules) are developed according to the subitem 8) of article 14 of the Law of the Republic of Kazakhstan "About the state audit and financial control" (further – the Law) and determine procedure for carrying out internal state audit and financial control by authorized body by internal state audit and financial control.

Internal state audit consists of the interconnected stages determined by Item 1 of article 17 of the Law.

2. In Rules the following basic concepts are used:

1) auditor proofs – actual data taking into account their legality, reliability and admissibility on the basis of which statutory auditors establish availability or lack of violations and (or) shortcomings of work, and also other materials stated in the audit report the confirmatory facts;

2) audit procedures – the actions performed during the auditor action according to the program of audit necessary for goal achievement of auditor action;

3) auditor action – complex of the actions directed to preparation, carrying out, report layout and the conclusions following the results of internal state audit;

4) person responsible for holding auditor action – the official of department of authorized body and its territorial subdivisions to who obligations on control of the organization and carrying out internal state audit are assigned;

5) the financial reporting – information on financial position, financial results of activities and changes of financial position of objects of the state audit and financial control (further – object of the state audit) which forms and amounts are determined by the central authorized body by budget implementation if other is not provided by legal acts of the Republic of Kazakhstan;

6) materials of the state audit and financial control – the documents necessary for carrying out the state audit, and also documents and the enclosed auditor proofs constituted by its results;

7) group of the state audit – two and more participants of auditor action (the state auditor(s), the assistant(s) to the statutory auditor, if necessary the involved experts in the corresponding profile);

8) the head of group of the state audit – the statutory auditor heading group of the state audit, determined by the head of body of internal state audit;

9) the instruction – the act of department of authorized body, obligatory for execution, and its territorial subdivisions sent to objects of the state audit for elimination of the revealed violations of the law of the Republic of Kazakhstan and (or) the reasons, conditions promoting them, and also taking measures of responsibility provided by the laws of the Republic of Kazakhstan to persons which allowed these violations;

10) the scale of internal state audit – the list of questions, the period and term of carrying out internal state audit;

11) bodies of internal state audit and financial control (further – bodies of internal state audit) – authorized body on internal state audit and financial control (further – authorized body) and its territorial subdivisions, services of internal audit of the central state bodies, except for services of internal audit of National Bank of the Republic of Kazakhstan, local executive bodies of areas, cities of republican value, the capital, service of internal audit of departments of the central state bodies (during creation), the services of internal audit of subordinated territorial authorities of the Ministry of Internal Affairs of the Republic of Kazakhstan created at the discretion of the first head within the number of staff (further – services of internal audit);

12) the program of carrying out internal state audit (the program of audit) – in details developed document constituted individually on each object of the state audit (except for counter check), the containing list of the questions which are subject to internal state audit;

13) the plan of carrying out internal state audit (further – the plan of audit) – the document developed on the basis of data of preliminary studying of object of the state audit, including the term of holding auditor action, necessary resources, objects of the state audit and routes.

3. Other concepts used in these rules are applied in the values determined by the Budget code of the Republic of Kazakhstan, the Law and other legislation of the Republic of Kazakhstan.

4. The state audit and financial control in special state bodies of the Republic of Kazakhstan is exercised according to the procedure, provided in Item 3 of article 2 of the Law.

5. When holding auditor actions statutory auditors, assistants to the statutory auditor, and also the involved experts, specialists of state bodies, auditing organizations (further - experts) are guided by standards of the state audit and financial control (further - standards) according to article 8 of the Law and these rules, proceeding from the competence established by the Law.

6. Internal state audit and financial control are integral part of system of public administration and are directed to increase in transparency, efficiency, responsibility for use of budgetary funds, assets of the state and quasi-public sector.

7. Internal state audit is booked on the basis of the list of objects of the state audit of the department for the corresponding year (further – the list of objects of the state audit) created according to article 18 of the Law.

Unplanned audit by department and its territorial subdivisions is carried out according to Item 5 of article 18 of the Law.

The term of carrying out unplanned audit taking into account monitoring procedure of quality on drafts of the audit report and the audit report according to the financial reporting constitutes at least 10 (ten) working days, except for electronic state audit.

Unplanned audit by department and its territorial subdivisions according to claims to actions (failure to act), decisions of the customer, the organizer of public procurements, the single organizer of public procurements, the commissions, the expert, the single operator in the sphere of public procurements is carried out after ten working days after execution by object of the state audit of the notification on elimination of the violations revealed by results of the cameral control directed according to the Order of the Minister of Finance of the Republic of Kazakhstan of November 30, 2015 to No. 598 "About approval of Rules of carrying out cameral control" (it is registered in the Register of state registration of regulatory legal acts at No. 12599).

When carrying out unplanned audit of department of Authorized body by territorial subdivisions coordination of the order on holding auditor action with department of Authorized body within 1 (one) working day is carried out.

8. The structure of group of the state audit includes the head of group of the state audit, statutory auditors and assistants to statutory auditors of department and its territorial subdivisions, statutory auditors of service of internal audit participating in holding auditor action and also in need of the expert(s).

Groups of the state audit are not included the official of the body conducting criminal prosecution, and also the physical persons and legal entities initiating auditor action.

9. Department and its territorial subdivisions perform the following types of the state audit:

1) financial records audit – assessment of reliability, justification of the financial reporting, financial accounting and financial condition of object of the state audit;

2) compliance audit – assessment, observance check by object of the state audit of regulations of the legislation of the Republic of Kazakhstan, and also acts of the subjects of the quasi-public sector adopted for their realization.

10. Within internal state audit by department and its territorial subdivisions are performed according to item 4 of article 17 of the Law.

11. Department and its territorial subdivisions perform the analysis, generalization and systematization of the violations and shortcomings revealed by results of the state audit.

Chapter 2. Forming of the list of objects of the state audit for the corresponding year

12. Forming of the list of objects of the state audit is performed according to the standards, the single principles and approaches to risk management system approved by joint normativnympostanovleniye of Calculating committee on control of execution of the republican budget (further - Calculating committee) of November 28, 2015 No. 10-HK and the order of the Minister of Finance of the Republic of Kazakhstan of November 27, 2015 No. 590 (it is registered in the Register of state registration of regulatory legal acts for No. 12502), Standard risk management system which is applied when forming the list of objects of the state audit and financial control for the corresponding year and carrying out internal state audit (further - TSUR), the Minister of Finance of the Republic of Kazakhstan approved by the order of November 30, 2015 No. 597 (it is registered in the Register of state registration of regulatory legal acts for No. 12490), The rules of interaction of bodies of the state audit and financial control approved by the joint normative resolution of Calculating committee of November 28, 2015 No. 9-HK and the order of the Minister of Finance of the Republic of Kazakhstan of November 27, 2015 No. 589 (it is registered in the Register of state registration of regulatory legal acts for No. 12577.).

13. Forming of the list of objects of the state audit is based on system approach according to the following principles:

1) complexity (ensuring interrelation and coordination of all stages of forming of the list - from preliminary stage prior to the finishing procedures);

2) continuity;

3) objectivity.

14. The list of objects of the state audit includes the name of object of the state audit, audit type, the name of auditor action, check type, the scope period the state audit, terms of carrying out audit, the planned amounts of budgetary funds and assets covered by the state audit.

15. Department and its territorial subdivisions, according to Item 9 of article 18 of the Law, approve the lists of objects of the state audit and amounts of budgetary funds and assets covered by the state audit and also fulfill questions of conducting joint, parallel checks with bodies of external state audit.

16. The list of objects of the state audit affirm for the corresponding financial year the head of department according to Item 2 of article 18 of the Law.

The list of objects of the state audit of department is developed and affirms till December 10 of the year previous planned and within three calendar days from the date of their approval go to services of internal audit.

The approved list of objects of the state audit of department, and also change to it within five calendar days from the date of their approval is placed on Internet resource of department taking into account observance of the mode of privacy, the office, commercial or protected by the law other secret according to the Instruction for providing the mode of privacy in the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of March 14, 2000 No. 390-16s "About approval of the Instruction for providing the mode of privacy in the Republic of Kazakhstan" (further – the Instruction).

17. Department and its territorial subdivisions within 3 (three) working days from the date of approval of the list of objects of the state audit sends it to the Highest auditor chamber of the Republic of Kazakhstan (further – the Highest auditor chamber), to audit committees, authorized body in the field of legal statistics and special accounting.

18. Modification of the list of objects of the state audit of department is allowed regarding exception of objects of the state audit in the presence of documents (materials) confirming the bases of modification.

In case of exception of certain auditor action of the list of objects of the state audit, person responsible for holding auditor action of territorial subdivision of department introduces to the head of territorial subdivision the service record with the corresponding reasons, and person responsible for holding auditor action of department – to the head of department. After consideration of the service record the territorial subdivision within two working days sends department the letter with reasons.

Following the results of consideration of the service record of person responsible for holding auditor action of department or the letter of territorial subdivision by the head of department within two working days the decision on exception of auditor action of the list of objects of the state audit is made.

19. Department and its territorial subdivisions on permanent basis carry out monitoring of execution of the approved list of objects of the state audit.

20. Department and its territorial subdivisions on quarterly basis carry out monitoring of changes of lists of objects of the state audit of the Highest auditor chamber and audit committees.

21. Following the results of the accounting period information on execution of the list of objects of the state audit is provided to the first head of department and its territorial subdivisions.

Chapter 3. Procedure for planning of separate internal state audit and its carrying out

Paragraph 1. Stages of auditor action

22. The organization of auditor action includes stages, each of which is characterized by accomplishment of certain tasks:

1) preparatory;

2) the main;

3) final.

23. Preparatory stage of carrying out internal state audit are preliminary studying of objects of the state audit, scheduling and programs of audit, the audit engagement on holding auditor action (further - the audit engagement), orders on holding the auditor action (check) (The act of purpose of check) (further - the order on holding auditor action) which is the act of purpose of check.

When planning separate state audit results of the current control which is carried out according to Article 97 of the Budget code of the Republic of Kazakhstan are considered.

The main stage of carrying out internal state audit is holding auditor action.

The final stage of carrying out internal state audit are decision making and creation of documents by results of internal state audit.

Paragraph 2. Preliminary studying of objects of the state audit

24. Preliminary action research of object of the state audit is carried out for refining of amount of the means and assets covered by auditor action, terms of carrying out the state audit, determination of questions of the state audit.

25. During preliminary studying on the basis of the analysis and assessment of information on activities of object of the state audit depending on type of audit and the purposes of auditor action, the following indicators are considered:

1) availability and degree of risks - determination and confirmation of existence of any factors (actions or events) which influence achievement of the purposes by state body when forming and using budgetary funds and assets in the checked sphere and (or) activities of object of the state audit;

2) availability and condition on object of the state audit of system of the measures and procedures adopted by management of object of the state audit for achievement of effective management of object of the state audit (internal control system) - carrying out the preliminary analysis and assessment of efficiency rate of the organization of internal control system and its components provided by the Law by results of which the capability of internal control system is determined to provide achievement of effective objectives and tasks;

3) materiality - variation when making by object of the state audit of financial and economic activities from requirements of regulations of the legislation of the Republic of Kazakhstan, and also acts of the subjects of the quasi-public sector adopted in their realization, and also other mistakes exerting impact on the made decisions most of which admissible size is determined according to the legislation of the Republic of Kazakhstan on the state audit and financial control depending on specifics of activities of object of the state audit and measure category.

26. Measure calculation of materiality and audit risk is performed according to standards.

27. The collected information includes data on normative legal regulation, organizational structure, the purposes, tasks and the expected results of activities of objects of the state audit, mechanisms of their accountability and the available internal control systems, the existing risks and other questions necessary for the purposes of internal state audit.

Information sources:

1) results and materials of the previous checks, including other bodies of the state audit and financial control;

2) materials of reports of participants of the budget process;

3) data of information systems of authorized body on budget implementation;

4) materials of meetings of coordination council of bodies of the state audit and financial control;

5) materials of meetings of the Government of the Republic of Kazakhstan, Administration of the President of the Republic of Kazakhstan and other executive bodies;

6) appeals of bodies of the representative and executive authority of the Republic of Kazakhstan;

7) appeals of bodies of the state audit and financial control;

8) materials of mass media;

9) appeals of physical persons and legal entities;

10) data on cash flow;

11) information from electronic service of judicial authorities of the Republic of Kazakhstan;

12) other sources.

28. Group of the state audit on preparatory stage to auditor action:

1) is carried out by the analysis of sources of information for preliminary action research of object of the state audit according to the approximate list of the questions studied by department and its territorial subdivisions during preliminary action research of object of the state audit according to appendix 1 to these rules;

2) is performed by information collection from available sources, the single database on the state audit and financial control and if necessary requests from object of the state audit additional data, information, documents (materials) for their preliminary studying.

29. On analysis results and the estimates of set listed in Items 25, of 26 and 27 these rules of information and indicators characterizing forming and use by object of the state audit of budgetary funds and assets, department and its territorial subdivisions:

1) the questions which are subject to scope during the auditor action between statutory auditors in case of conducting joint and parallel checks - between state bodies and bodies of the state audit and financial control are distributed;

2) objects of counter check are determined;

3) the experts involved to carrying out the state audit and the specific questions of the state audit planned for the order by it are determined;

4) issues of receipt of permissions in cases of carrying out the state audit on sensitive sites are handled.

Paragraph 3. Scheduling and programs of audit, audit engagement and order

30. On the basis of preliminary studying of objects of the state audit prior to holding auditor action on object of audit by department and its territorial subdivisions the plan and the program of audit, the audit engagement and the order for holding auditor action are constituted.

The plan of audit is constituted by the head of group of the state audit in cases when auditor action two and more objects of the state audit are subject to scope, and affirms person responsible for holding auditor action for form according to appendix 2 to these rules.

The program of audit is constituted by the head of group of internal state audit or the statutory auditor and affirms person responsible for holding auditor action for form according to appendix 3 to these rules.

The audit engagement is constituted in case of holding auditor action by two and more participants, signed by all members of group of the state audit and affirms the head of group of the state audit in form according to appendix 4 to these rules.

The order on holding auditor action (counter, joint, parallel checks) is the official document granting the right to holding auditor action, counter, joint, parallel checks and is drawn up on the form of the strict accounting in form according to appendix 5 to these rules.

The order on holding auditor action is constituted by the statutory auditor or the head of group of the state audit, approved with person responsible for holding auditor action and signed by the head of department and its territorial subdivisions.

31. Persons responsible for holding auditor action, to exit to auditor action (the main stage) carry out technical study (instructing) with participants of group of the state audit.

32. The program of audit contains indicators of the state audit and the disaggregated questions of auditor action (joint, parallel check) to each of indicators.

The program of audit is logical, clear, and also is directed to achievement of effective objectives of auditor action.

The program of financial records audit is constituted on the basis of calculation of materiality and audit risk according to the procedure, provided by the procedural standard "Financial records audit" approved by the order of the Minister of Finance of the Republic of Kazakhstan of April 24, 2017 No. 272 (it is registered in the Register of state registration of regulatory legal acts for No. 15209).

33. In case of creation of the program of compliance audit questions of observance by object of the state audit of regulations of the legislation of the Republic of Kazakhstan, provisions of regulatory legal acts, and also the acts of the subjects of the quasi-public sector adopted for their realization, regulating and regulating activities of object of the state audit are reflected.

34. In case of creation of the program of financial records audit by department and its territorial subdivisions questions of completeness and reliability of financial accounting and creation of the financial reporting by public institutions, administrators of the budget programs of consolidated financial statements join.

35. The audit engagement contains the specific program questions which are subject to scope during the auditor action, the terms of their consideration on each object of the state audit distributed between participants of group of audit.

36. Department and its territorial subdivisions keep the separate magazine of registration according to orders for holding auditor action in which number and registration date of the order, the name of object of audit, audit type, surname, name, middle name (are reflected in case of its availability) the head of group of audit, including by means of the Single system of electronic document management (further – ESEDO).

37. Department and its territorial subdivisions register the order on holding auditor action in the authorized body in the field of legal statistics and special accounting according to the procedure provided by Rules of registration of acts of appointment, additional acts of prolongation of review periods and preventive control and supervision with visit of subject (object) of control and supervision and their cancellation, notifications on suspension, renewal, prolongation of review periods and preventive control and supervision with visit of subject (object) of control and supervision, change of list of participants and submission of information accounting documents on check and preventive control and supervision with the visit of subject (object) of control and supervision and their results approved by the order of the acting as the Attorney-General of the Republic of Kazakhstan of December 25, 2020 No. 162 "About approval of Rules of registration of acts of appointment additional acts of prolongation of review periods and preventive control and supervision with visit of subject (object) of control and supervision and their cancellation, notifications on suspension, renewal, prolongation of review periods and preventive control and supervision with visit of subject (object) of control and supervision, change of list of participants and submission of information accounting documents on check and preventive control and supervision with visit of subject (object) of control and supervision and their results" (it is registered in the Register of state registration of regulatory legal acts at No. 21964.).

Paragraph 4. Holding auditor action

38. The basis for holding auditor action is the order on holding auditor action.

39. On each object of the state audit the personal errand on holding auditor action is drawn up.

Before holding auditor action to the head of object of the state audit or person, it replacing are shown:

1) the order on holding auditor action (check);

2) official IDs of the officials authorized on carrying out internal state audit;

3) permission of competent authority to visit of sensitive sites according to the procedure, determined by the Instruction.

40. The auditor action is performed only by persons specified in the order holding auditor action.

41. The beginning of holding auditor action is day of presentation of the order on holding auditor action to the official (persons) of object of the state audit.

42. The requirement for provision by object of the state audit of data, information, documents (materials) in form according to appendix 6 to these rules signed by the head of group of the state audit or the statutory auditor is transferred to the head of object of the state audit or the official no later than two working days from the date of presentation of the order to holding auditor action.

Number of the order on holding auditor action is assigned to the requirement provided by this Item of Rules through fraction and date of delivery of the specified requirement is specified.

The first copy of the requirement for provision is transferred by object of the state audit of data, information, documents (materials) under list to the head of object of the state audit or the official. In case of rejection, the requirement for provision by object of the state audit of data, information, documents (materials) is transmitted by the head of group of the state audit (statutory auditor) through office of object of the state audit.

The second copy of the requirement for provision is applied by object of the state audit of data, information, documents (materials) with mark about its acceptance to the audit report which is drawn up in form according to appendix 7 to these rules, and the audit report according to the consolidated financial reporting / the financial reporting which is drawn up in form according to appendix 8 to these rules.

In cases of need of receipt of additional documents, materials, information when holding auditor action and hindrance in their provision to object of the state audit, the head of group of the state audit or the statutory auditor the requirement for provision by object of the state audit of data, information, documents (materials) which is drawn up according to this Item of Rules in addition goes.

When conducting counter check the requirement for provision by object of the state audit of data, information, documents (materials) is shown to object of the state audit in case of its hindrance to conducting counter check.

43. In cases of refusal by officials of object of the state audit in the admission on object of the state audit and (or) hindrance to holding auditor action, the statutory auditor draws up the statement upon hindrance to carrying out the state audit in form according to appendix 9 to these rules and the protocol on administrative offense based on article 462 of the Code of the Republic of Kazakhstan "About administrative offenses" (further - the Administrative Code).

44. In cases, stipulated in Item 43 these rules, the head of group of the state audit in writing, by e-mail (fax), mail service and (or) purposely informs on these facts person responsible for holding auditor action who takes measures for their elimination.

45. In case of not elimination by object of the state audit of the circumstances interfering carrying out the state audit, person responsible for holding auditor action prepares the petition for the first head of department and its territorial subdivisions about suspension of auditor action before complete elimination of the reasons interfering carrying out the state audit.

46. The solution on suspension, renewal of auditor action, change of scale of internal state audit, participants (structure) of group of the state audit is accepted by the head of department and its territorial subdivisions and is drawn up by the relevant order, with the simultaneous notification of object of the state audit and authorized body in the field of legal statistics and special accounting.

47. At the information stand of object of the state audit statutory auditors place information that on object of the state audit the auditor event is held by employees of department and its territorial subdivisions.

48. If on object of the state audit the fact of carrying out the state audit by other body of the state audit on the purpose, the subject and the period covered by auditor action, matching auditor action of department and its territorial subdivisions is elicited, then the procedure of recognition of results of the state audit is performed by the head of group of the state audit or the statutory auditor according to requirements of article 19 of the Law and the procedural standard of external state audit and financial control for recognition of results of the state audit approved by the normative resolution of Calculating committee of March 31, 2016 No. 5-HK "About approval of procedural standards of external state audit and financial control" (it is registered in the Register of state registration of regulatory legal acts under 13647).

49. In case of origin during the auditor action of the questions which are not provided by the program of audit, but necessary for complete studying of subject of auditor action, the statutory auditor in coordination with the head of group of the state audit creates the service record with reasons for the project of modification of the program of audit (further – the service record) and sends to his face responsible for holding auditor action.

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