Article 21. Rights and obligations of audit organizations The Law on Auditing

Home / RLA / Article 21. Rights and obligations of audit organizations The Law on Auditing

1. Audit organizations may:

1) independently determine the audit methods;

2) request and verify the necessary accounting and other financial and business documentation to fulfill the terms of the contract for conducting an audit, tax audit, special purpose audit of quasi-public sector entities, and audit of other information;

2-1) when conducting a tax audit, a special purpose audit of quasi-public sector entities, request information regarding the audited entity from government agencies, local executive bodies, banks, branches of non-resident banks of the Republic of Kazakhstan and organizations engaged in certain types of banking operations, as well as other organizations in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

2-2) request and verify the necessary documentation on internal policies and procedures, the risk management and internal control system, the information technology risk management system, the information security system, the corporate governance system, as well as the internal control system in the field of countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction to fulfill the terms of the contract for auditing other information;

3) involve specialists of various profiles on a contractual basis to participate in the audit, with the exception of the persons specified in Article 24 of this Law;

4) to refuse to conduct an audit, tax audit, special purpose audit of quasi-public sector entities, audit of other information, or issue an audit report or audit opinion in case of violation by the audited entity of the terms of the contract for conducting an audit, tax audit, special purpose audit of quasi-public sector entities, audit of other information;

5) to verify in full the documentation related to the financial and economic activities of the audited entity, as well as the actual availability of property recorded in this documentation.

6) to give opinions to the prosecutor's office, criminal prosecution and court.

2. Audit organizations are required to:

1) comply with the legislation of the Republic of Kazakhstan on auditing, auditing standards, Code of Ethics;

2) do not interfere with external quality control or inspections conducted by an authorized body;

3) within one month from the date of obtaining a license to carry out auditing activities or voluntarily leaving or being expelled from a professional organization, join a professional organization;

4) if the accreditation of a professional organization of which they are members is revoked, join another professional organization within three months.;

5) not to disclose commercial secrets, except in cases stipulated by the laws of the Republic of Kazakhstan;

6) provide the audited entity with information on identified violations in accounting, financial reporting and other information related to financial reporting.

In the case of audits in state institutions, state-owned enterprises, legal entities with state participation, special-purpose audits of quasi-public sector entities, audit organizations are also required to provide the audited entities with information on identified violations of the legislation of the Republic of Kazakhstan when using budget funds, loans, related grants, assets of the state and quasi-public sector entities, state and state-guaranteed loans, as well as loans secured by the state;

7) inform the authorized body for regulation, control and supervision of the financial market and financial organizations, notifying the audited entities of violations of the legislation of the Republic of Kazakhstan identified as a result of the audit of financial organizations, organizations that are part of a banking conglomerate, organizations that are part of an insurance group for which an audit is mandatory;

8) provide reports to the authorized body in accordance with the qualification requirements for licensing, as well as information on insurance of their civil liability in the form approved by the authorized body.;

9) submit to the authorized body for regulation, control and supervision of the financial market and financial organizations, within the time limits established by the legislation of the Republic of Kazakhstan, an audit report on the audit of other information of a bank, an insurance (reinsurance) organization, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan, a professional participant in the securities market;

9-1) submit an audit report on taxes to the state revenue authority at the location of the audited entity in accordance with the procedure determined by the authorized body;

9-2) submit to the Supreme Audit Chamber of the Republic of Kazakhstan an audit opinion on the special purpose audit of quasi-public sector entities in accordance with the procedure determined by the Supreme Audit Chamber of the Republic of Kazakhstan in coordination with the authorized bodies for internal state audit, state property management and the central authorized body for state planning;

10) provide the authorized financial monitoring body with information in accordance with the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of terrorism";

11) comply with the requirements established by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and the financing of terrorism.

12) disclose (transfer) information to the authorized body for asset recovery in accordance with the Law of the Republic of Kazakhstan "On the return of illegally Acquired Assets to the State", including information constituting a commercial secret.

3. Illegal interference of government agencies, audited entities and any third parties in the activities of audit organizations is prohibited.

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.

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Republic of Kazakhstan

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