RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of September 19, 2018 No. PP-3946

About measures for further development of auditor activities in the Republic of Uzbekistan

For last years in the country the normative and legal and methodological base of audit is created, and also the simplified and termless system of licensing of auditor activities is implemented that allowed to create the market of auditor services and to provide the entry of domestic auditing organizations into large international networks of audit companies.

At the same time, number of problems and shortcomings interferes with further development of auditor activities and increase in the importance of auditor services for acceptance of management decisions and improvement of quality of corporate management among which:

the first, low level of credibility to auditing organizations, and also consideration of audit inspection as excessive and burdensome ministerial procedure, but not as guarantor of confirmation of reliability of the financial reporting;

the second, the available restrictions and practice of carrying out tenders on selection of auditing organizations quite often promote unfair competition, including price owing to what quality of auditor services and reliability of audit opinions decrease;

third, the operating system of special preparation and advanced training of auditors has formal character, does not provide the necessary professional training level and qualities of auditor services, including according to international standards of auditor activities that leads to fall of prestige of profession of the auditor;

the fourth, there is no effective external control system of quality of work of auditing organizations that in case of limitation of measures of legal impact of the licensing body does not allow to react to the facts of rendering low-quality auditor services and unfair actions of auditors quickly;

the fifth, incomplete compliance of national standards of auditor activities to the conventional international standards of audit that does not provide forming at foreign investors of understanding of reliability of the financial reporting of domestic enterprises.

For the purpose of further improvement of conditions for market development of auditor services and implementation of modern approaches in auditing regulation according to international standards:

1. - to the Minister of Finance of the Republic of Uzbekistan D. A. Kuchkarov to provide to the deputy prime minister of the Republic of Uzbekistan realization of the following priority directions of development of auditor activities:

enhancement of the legislation on auditor activities, including forming of efficient external control system of quality of work of auditing organizations, on the basis of international standards, directed to improvement of quality of auditor services and maintenance of trust of business community to results of work of auditing organizations;

involvement of youth in auditor profession, in particular, ensuring active cooperation of professional public associations with the relevant highest educational institutions;

increase in level of involvement of auditing organizations into the international auditor networks, including the organization of active methodical support of auditing organizations, auditors in questions of application of international standards of audit;

activization of activities of republican public associations of auditors for interaction with the international organizations establishing international standards of audit, to distribution of the best international experience of application of the specified standards.

2. Approve the Actions plan on further development of auditor activities in the Republic of Uzbekistan according to appendix.

Confer the personal responsibility on heads of the Ministry of Finance (V. Pak), the Ministries of Justice (N. Zhurayev), the Ministries of Economics (M. Mirzayev), the State Tax Committee of the Republic of Uzbekistan (B. Musayev), the Tashkent financial institution (U. Azizov) and republican public associations of auditors for high-quality and timely execution of the Actions plan.

3. Establish since January 1, 2019 procedure according to which:

the commercial organization, information on which is not entered in the register of the auditing organizations having the license for implementation of auditor activities within three months from the date of entering of information about her into the Unified state register of subjects of the entrepreneurship having no right to use in the name words "auditing organization";

the license for implementation of auditor activities grants the right to the licensee to perform all types of audit inspections;

the authorized capital of auditing organization is created by the property, including money which is directly used when implementing activities of auditing organization;

the minimum number of auditors for whom the auditing organization is principle place of employment constitutes at least four regular auditors;

audit inspection of the same business entity is carried out no more than seven years in a row;

The Ministry of Finance of the Republic of Uzbekistan together with republican public associations of auditors at least once in three years carries out external control of quality of work of auditing organizations;

auditing organizations publish on the websites or websites of public associations of auditors information on the carried-out obligatory audit inspections with indication of the identifying data of business entity and audit opinion.

To provide to the operating auditing organizations till April 1, 2019 complete completeness of the minimum number of regular auditors established by this resolution.

4. Cancel requirements since January 1, 2019:

to the minimum size of the authorized capital of auditing organizations;

on certification of heads of auditing organizations;

at the choice of auditing organization for carrying out external audit on competitive basis from the list determined by the State committee on assistance to the privatized companies and development of the competition and the Ministry of Finance of the Republic of Uzbekistan at the companies with the block of shares (share) of the state in the authorized capital over 50 percent.

See the previous edition.

5. Determine that: 

book value of assets over 100-thousandfold basic settlement size;

proceeds from sales of products (works, services) of more 200-thousandfold basic settlement size;

the annual average number of workers is over 100 people;

b) from the date of entry into force of corresponding changes in the Law of the Republic of Uzbekistan "About auditor activities" auditing organizations perform auditor activities only on the basis of the international standards of audit published by the International federation of accountants;

c) results of external control of quality of work of the auditing organizations which are carrying out obligatory audit inspection are published on the website of the Ministry of Finance of the Republic of Uzbekistan.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info