ORDER OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of February 1, 2022 No. 113

About approval of the procedural standard of internal state audit and the financial control "Compliance audit"

According to the subitem 2) Item 2 of article 8 of the Law of the Republic of Kazakhstan "About the state audit and financial control" PRIKAZYVAYU:

1. Approve the enclosed procedural standard of internal state audit and the financial control "Compliance audit".

2. To provide to department of methodology of financial accounting, audit and assessment of the Ministry of Finance of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

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

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

3) 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) and 2) of this Item.

3. To impose control of execution of this order on the supervising vice-Minister of Finance of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication.

Approved by the Order of the Minister of Finance of the Republic of Kazakhstan of February 1, 2022, No. 113

Procedural standard of internal state audit and the financial control "Compliance audit"

Chapter 1. General provisions

1. This Procedural standard of internal state audit and the financial control "Compliance audit" (further - the Standard) determines the purpose, tasks, the main stages, procedures, methods, and also the single requirements to carrying out compliance audit performed by bodies of internal state audit and financial control (further - bodies of internal state audit).

The standard is developed according to the subitem 2) of Item 2 of article 8 of the Law of the Republic of Kazakhstan "About the state audit and financial control" (further - the Law).

2. Action of this Standard extends to statutory auditors, assistants to the statutory auditor of bodies of internal state audit, and also the involved experts, specialists of state bodies and (or) its territorial and subordinated subdivisions, auditing organizations.

3. In this Standard the following concepts are used:

basic criteria - the indicators used when carrying out compliance audit regardless of its directions and activities of object of the state audit;

criteria - reasonable and achievable reference regulations, indicators based on which observance 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 is checked.

Chapter 2. Purpose, tasks and main stages of compliance audit

4. The purpose of compliance audit is reasonable expression of opinion on observance by object of the state audit of the regulations of the legislation of the Republic of Kazakhstan regulating field of activity of object of the state audit, and also acts of the subjects of the quasi-public sector adopted for their realization.

5. Tasks of the Standard are:

1) establishment of requirements to planning, preparation for carrying out, forming of conclusions and results, and also to control of realization of results of compliance audit;

2) determination of procedures and methods of carrying out compliance audit;

3) disclosure of features in questions of determination of criteria of compliance audit, forming of the conclusions and results included in audit reports.

6. Tasks of compliance audit are:

1) determination of the topical issue created following the results of studying according to risk management system and also when planning unplanned audit, according to article 18 of the Law, and criteria of compliance audit;

2) collection of objective, mathematical and sufficient auditor evidences concerning achievement of criteria of compliance, identification of the reasons of their variation (in the presence);

3) forming of the independent, objective and competent audit report and conclusion, report on results of internal audit with development of recommendations about elimination of the revealed shortcomings and violations and to their non-admission in the future;

4) realization of results of compliance audit by means of carrying out monitoring according to article 25 of the Law.

7. Compliance audit is performed by bodies of internal state audit, proceeding from the provided powers, in the directions according to the subitem 2) of Article 14 and subitems 5) and 6) of article 15 of the Law.

8. Compliance audit consists of the following stages:

1) the planning of separate internal state audit including preliminary studying of objects of the state audit, scheduling of carrying out internal state audit (further - the Plan) and Programs of carrying out internal state audit (further - the Program of audit), the Audit engagement on holding auditor action (further - the Audit engagement) and Orders on holding auditor action (check) (The act of purpose of check) (further - the Order) according to the Rules of carrying out internal state audit and financial control approved by the 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" (it is registered in the Register of state registration of regulatory legal acts for No. 16689) (further - Rules), and also timely registration of the Order of authorized body on internal state audit (further - department) and its territorial subdivisions on carrying out internal state compliance audit in bodies of legal statistics and special accounting;

2) the carrying out internal state audit including organizational bases of holding auditor action, creation and execution of the audit report (further - the audit report), audit opinion, the instruction, the decision (order) on elimination of violations and consideration of recommendations (further - the decision (order);

3) implementation of monitoring of execution of the recommendations which are in audit opinion, the audit report and the instruction, the decision (order).

Chapter 3. Procedure for planning of separate internal state audit

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