World Bank Document

Banks
 
Regulations issued by CBU with conversion
of financial statements to IAS/IFRS
14
Required 
Required to publish four specified 
statements and an audit report in the 
print media.
Non-Banking Financial 
Institutions (NBFI) 
Licensed by the CBU 
NAS
Required 
Required 
to 
publish 
specified 
statements and audit report in the 
print media.
State-Owned 
Enterprises 
NAS 
Required 
Required 
to 
publish 
specified 
statements and audit report in the 
print media. 
 
The Statutory Framework for Auditing
31. The Law on Auditing Activity (LoAA), similarly to equivalent laws in peer countries, 
does not define “audit” but, rather, “auditing activity” (i.e., regulating both audit and non-
audit services). The difference, while subtle in wording, results in significant consequences for 
auditors as it in fact regulates any activity performed by auditors and audit firms as opposed to 
regulating statutory audits only, i.e. auditors that perform audits required by law and only these 
14
It is important to note that reporting in accordance with IFRS in Uzbekistan means preparing accounts in 
accordance with NAS and having auditors convert these into IFRS. 

---

The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
- 11 - 
 
audits. The law defines auditing activity as “for-profit (entrepreneurial) activity by audit firms 
when performing auditor’s review and other professional services…” These other services are 
then defined as “establishment and maintenance of accounting, preparation of financial 
statements, conversion of national financial statements to statements in accordance with 
international standards, analysis of financial and economic activities of the company, consulting 
on matters of accounting, tax, planning, management and other matters of financial and economic 
activity, and preparation of tax returns. Audit firms may provide other professional services 
envisaged by NSA.”  
32. The LoAA prescribes an annual statutory audit for the following:

banks and other institutions licensed by the CBU; 

insurance companies; 

all joint-stock companies; 

investment and other funds administering monetary investments of the public at 
large; 

charities and NGOs; 

entities where the sole or one of the shareholders is a public sector entity; 

quasi-NGOs (entities whose income is established by legislation). 
In addition, entities not subject to mandatory audit may choose to arrange a voluntary audit of 
their financial statements. For statutory audits, there is a mandatory auditor rotation after three 
years on the engagement. Auditing standards applicable in Uzbekistan are National Standards on 
Auditing (NSA), which are theoretically based on ISA. However, it would be misleading to 
contend that NAS are fully aligned with ISA. Further, the “auditor’s report” is defined as a long-
form report that includes prescribed analytical information, as well as discussion of internal 
control issues and compliance with taxation and other legislation, etc. The “auditor’s conclusion” 
contains information resembling that in the audit report prescribed by ISA 700. In addition, 
because the Uzbek accounting framework is based on attesting to compliance, Uzbek audit 
conclusions require wording that fits that framework.
33. The Audit Licensing Authority, with the assistance of both the National Association of