Article 1. The basic concepts used in this Law of the Law on Auditing

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The following basic concepts are used in this Law:

1) an accredited professional auditing organization (hereinafter referred to as a professional organization) is a non–profit organization that unites auditors and auditing organizations;

2) accreditation is the official recognition by an authorized state body of the powers of professional organizations provided for by this Law.;

3) attestation is a procedure for determining the knowledge and skills of candidates for auditors by the Qualification Commission;

4) audit – an audit in order to express an independent opinion on financial statements and other information related to financial statements in accordance with the legislation of the Republic of Kazakhstan;

5) auditor – an individual certified by the Qualification Commission for the Certification of Candidates for Auditors (hereinafter referred to as the Qualification Commission), who has received a qualification certificate for the qualification of an auditor;

6) an audit report is a written official document that is the result of an audit.;

7) auditing activity – business activity for auditing financial statements and other information related to financial statements and providing services in accordance with this Law;

7-1) the Professional Council on Auditing (hereinafter referred to as the Professional Council) is a non–profit non-profit organization established by a professional organization (professional organizations).;

8) audit organization – a commercial organization established to carry out auditing activities and is a member of a professional organization;

9) audited entity – a legal entity, branches and (or) representative offices of a legal entity acting on its behalf, an individual entrepreneur in respect of whom an audit is being conducted, an audit of taxes, an audit of other information;

10) The Code of Ethics is a set of ethical rules for the professional activities of auditors, auditing and professional organizations, issued by the International Federation of Accountants and applied in the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting.;

11) unreliable audit report – an audit report prepared in violation of the legislation of the Republic of Kazakhstan on auditing, containing unreliable and (or) incomplete information about financial statements and information provided by auditing standards, misleading users;

12) audit of information on the expenses of the subsurface user – audit of the expenses of the subsurface user for operations on exploration and extraction of minerals;

12-1) objects of external quality control of the professional council – auditing organizations that audit issuers whose securities are included or are planned to be included in the official list of stock exchanges operating in the territory of the Republic of Kazakhstan, as well as financial organizations (with the exception of legal entities operating exclusively through exchange offices based on the license of the National Bank of the Republic of Kazakhstan for exchange operations with foreign currency in cash, and legal entities whose exclusive activity is the collection of banknotes, coins and valuables), national management holdings, national holdings, national companies, and subsurface users (except those extracting common minerals);

13) audit of special purpose entities of the quasi–public sector - audit on the use of budgetary funds;

14) knowingly unreliable audit report – an audit report prepared without conducting an audit or containing an opinion that intentionally misleads users.;

15) conflict of interest – a situation in which the audit organization's interest may influence its opinion on the reliability of the financial statements of the audited entity;

16) audit of other information – an audit carried out in accordance with the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", "On Insurance Activities", "On the Securities Market", processes and information not related to financial reporting in relation to the assessment of the risk management system and internal control, including in relation to strategy and business models, assessment of the corporate governance system, assessment of the information technology risk management system, assessment of the effectiveness of the information security system, as well as the effectiveness of the internal control system in countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

17) audit report on the audit of other information – an opinion drawn up based on the results of an audit of other information;

17-1) a non–practicing expert is an individual who is not a founder (participant) or employee of an audit organization and is not in a civil relationship with it for at least one calendar year prior to his appointment and during his work in the bodies of the professional council.;

18) tax audit – an audit on the correctness of calculation and payment of all types of taxes and other mandatory payments to the budget, completeness and timeliness of calculation, withholding and transfer of mandatory pension contributions, mandatory professional pension contributions, completeness and timeliness of calculation and payment of social contributions, conducted in accordance with the procedure determined by the authorized state body;

19) audit report on taxes – an opinion drawn up based on the results of an audit on taxes;

20) unreliable audit report on taxes – an opinion drawn up by an audit organization in violation of the legislation of the Republic of Kazakhstan, containing unreliable and (or) incomplete information on the correctness of the calculation and payment of taxes and other mandatory payments to the budget, the completeness and timeliness of the calculation, withholding and transfer of mandatory pension contributions, mandatory occupational pension contributions, completeness and timeliness of the calculation and payment of social contributions, and also compiled without conducting a tax audit or containing an opinion that is intentionally misleading;

21) the authorized state body (hereinafter referred to as the authorized body) is the central executive body responsible for regulation in the field of auditing and state control in the field of auditing and the activities of professional organizations.;

22) standards of organizations – internal documents of an audit organization that establish uniform requirements for the audit procedure that do not contradict the legislation of the Republic of Kazakhstan;

23) International Standards on Auditing (hereinafter referred to as auditing standards) are standards and documents issued by the International Federation of Accountants.

The Law of the Republic of Kazakhstan dated November 20, 1998 No. 304.

 This Law regulates the relations that arise between government agencies, individuals and legal entities, auditors, audit organizations, professional audit organizations and the professional audit council in the process of auditing activities in the Republic of Kazakhstan.

President

Republic of Kazakhstan

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