ORDER OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of June 16, 2021 No. 574

About approval of Standard rules of carrying out external control of quality of auditing organizations, including criteria of checks of the auditing and professional organizations

According to subitem 1-4) of article 7 of the Law of the Republic of Kazakhstan "About auditor activities" and the subitem 161) of Item 15 of the Regulations on the Ministry of Finance of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of April 24, 2008 No. 387, I ORDER:

1. Approve the enclosed Standard rules of carrying out external control of quality of auditing organizations, including criteria of checks of the auditing and professional organizations.

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 since July 6, 2021 and is subject to official publication.

Approved by the Order of the Minister of Finance of the Republic of Kazakhstan of June 16, 2021 No. 574

Standard rules of carrying out external control of quality of auditing organizations, including criteria of checks of the auditing and professional organizations

Chapter 1. General provisions

1. These standard rules of carrying out external control of quality of auditing organizations, including criteria of checks of the auditing and professional organizations (further - Standard rules), are developed according to subitem 1-4) of article 7 of the Law of the Republic of Kazakhstan "About auditor activities", the subitem 161) of Item 15 of the Regulations on the Ministry of Finance of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of April 24, 2008 No. 387, and determine procedure for carrying out external control of quality of auditing organizations, including criteria of checks of the auditing and professional organizations.

2. In these Standard rules the following concepts are used:

1) the controller - the person designated by working body of the professional organization and (or) committee on quality control of professional advice and (or) executive body of the professional organization from among auditors, having working experience in the field of carrying out statutory audit for carrying out external control of quality;

2) objects of external control of quality of professional advice - auditing organizations which book audit of issuers whose securities are included or are planned to inclusion in the official listing of the stock exchanges functioning in the territory of the Republic of Kazakhstan and also the financial organizations (except for the legal entities performing activities only through exchange points based on the license of National Bank of the Republic of Kazakhstan for exchange transactions with cash foreign currency and legal entities whose exclusive activities is collection of banknotes, coins and values), national managing holdings, national holdings, the national companies, subsoil users (except extracting popular minerals);

3) external control of quality - quality control behind observance by auditors and auditing organizations of requirements of International standards of audit, the Code of ethics and the legislation of the Republic of Kazakhstan on auditor activities is also performed on basis risk - the oriented approach, performed by committee on quality control of professional advice concerning objects of external control of quality of professional advice and (or) the professional organizations concerning auditing organizations which are not objects of external control of quality of professional advice.

3. External control of quality is divided into the following subspecies:

1) planned;

2) unplanned.

4. Unplanned external control of quality is carried out:

1) in case of obtaining by professional advice or the professional organization of the address on actions (failure to act) of auditors, auditing organizations and professional organizations;

2) in case of disagreement with results of work of auditors and (or) auditing organizations;

3) at the initiative of objects of external control of quality of professional advice;

4) at the initiative of authorized body according to the arrived addresses connected with activities of auditors, auditing organizations and professional organizations.

The decision on carrying out unplanned external control of quality according to the address is submitted for actions (failure to act) of auditors, auditing organizations and professional organizations within 2 (two) working days after consideration of the actual data stated in the address.

5. Terms of carrying out planned and (or) unplanned external control of quality are determined by committee on quality control of professional advice and (or) the relevant professional organization according to the approved internal plan by each auditing organization. At the same time terms of carrying out external control of quality by committee on quality control of professional advice and the professional organization do not exceed more than 10 (ten) working days, and for determination of assessment by results of external control of quality - no more than 2 (two) months. In case of request of authorized body terms of carrying out external control of quality do not exceed 7 (seven) working days, and for determination of assessment by results of external control of quality - no more than 15 (fifteen) working days.

6. The period (scope) which is subject to planned external control of quality is estimated from the date of the conclusion about results of the previous external control of quality and shall not exceed 3 (three) years. Date of the conclusion about results of external control of quality date of registration of results of passing of external control of quality - determination of assessment is considered.

Chapter 2. Standard rules of carrying out external control of quality of auditing organizations

7. The procedure for carrying out external control of quality of auditing organizations includes:

1) questions on the organization of the procedure of external control of quality;

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