Ministry of Justice
Republic of Uzbekistan
On March 3, 2003 No. 1224
of January 27, 2003 No. 15
About approval of the National standard of auditor activities of the Republic of Uzbekistan (NSAD No. 55) "Procedures of receipt of auditor proofs for transactions between the connected persons"
Based on article 21 of the Law of the Republic of Uzbekistan "About auditor activities" and according to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of September 22, 2000 to No. 365 "About enhancement of auditor activities and increase in role of audit inspections", the Regulations on the Ministry of Finance of the Republic of Uzbekistan approved by the Resolution of the President of the Republic of Uzbekistan of March 18, 2017 No. PP-2847 I order:
1. Approve the enclosed National standard of auditor activities of the Republic of Uzbekistan (NSAD No. 55) "Procedures of receipt of auditor proofs for transactions between the connected persons".
2. This order becomes effective after ten days from the moment of its state registration in the Ministry of Justice of the Republic of Uzbekistan.
M. B. Nurmuratov
Approved by the Order of the Ministry of Finance of the Republic of Uzbekistan of January 27, 2003, No. 15
This National Standard of Auditor Activities (NSAA) is developed based on article 21 of the Law of the Republic of Uzbekistan "About auditor activities" (Sheets of Oliy Majlis of the Republic of Uzbekistan, 2000, Art. No. 5-6, 149), Item 3 of the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of September 22, 2000 No. 365 "About enhancement of auditor activities and increase in role of audit inspections" (the joint venture of the Republic of Uzbekistan, 2000, No. 9, the Art. 62) and is element of normative auditing regulation in the Republic of Uzbekistan.
1. The purpose of this standard is determination of the audit procedures performed by auditing organization for the purpose of detection of transactions with the connected persons.
2. Requirements of this standard are obligatory for all auditing organizations when carrying out audit inspection:
3. For the purpose of this standard the connected persons persons who in case of transactions are connected (interested) are recognized.
Coherence (interest) of persons are determined by the legislation.
4. The transaction between the connected persons is transfer of means or obligations between the connected persons regardless of whether the payment is levied for such transfer.
5. Transactions between the connected persons shall be studied as much as possible in detail as they, in most cases, are followed by misstatements of the financial reporting.
6. Can specify the following examples of transactions the connected relations of persons:
a) issue and receipt of loan without interest payment or payment without determination of subject, conditions and payment due date;
b) the agreements providing unusual conditions, for example, the unusual prices;
c) the transactions performed without the visible logical reason;
d) unaccounted transactions, such as non-paid receipt or rendering services.
7. For determination of the connected persons and detection of transactions between them the auditor should undertake the following:
a) find out from management of business entity of the name of all connected persons whether any bargains for last period were concluded with these persons, whether the business entity has corresponding methods of registration of transactions with the connected persons and whether such facts in the reporting correctly are reflected. If the specified methods are used, then it is necessary to give them assessment;
b) study the shareholder register for the purpose of determination of large shareholders who can have significant effect on activities of business entity;
c) research the reasons of transition to work to the client of directors and employees from other companies;
d) will get acquainted with results of the previous audit inspection;
e) study nature and amounts of activities with the main buyers, suppliers, debtors, creditors.
8. When the auditor reveals transactions with the connected persons, he shall analyse their influence on the financial reporting.
9. Audit inspection of transactions with the connected persons is as follows:
a) receipt of idea of business side of the transaction that can be reached by holding conversations with employees of business entity;
b) studying of documentation of accounts, agreements, contracts, notifications on goods receipt, reports on movement of goods and other documents;
c) determination of the subject who approved the transaction the board of directors, other governing bodies or workers;
d) the organization of audit inspection of activities of each of persons participating in the transaction and exchange of the acquired information;
e) studying of the materials concerning the transaction, but being at the disposal of other person (if the auditor performs the financial reporting not at both persons directly, then it is necessary to receive the consent of other person);
e) receipt of necessary proofs in transaction between the connected persons;
g) if the auditor assumes that bargains were concluded with nonexistent, fictional persons, then he shall obtain information on these participants of the transaction by studying of financial publications, commercial magazines, targeting of references in credit institutes, in banks;
h) if there are outstanding accounts, guarantees or other obligations relating to the connected persons, then the auditor has the right to find out financial opportunities of other person.
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