World Bank Document

Accountants and Auditors (NAAA) and the Chamber of Auditors (CoA), has promulgated 
21 NSAs. The standards, inspired by the “old” (pre-risk-based) ISA approach, get their legal 
authority from the Ministry of Justice registering the standards (see details in the auditing 
standards gap section below). 
34. Special requirements apply to the auditors of banks, bank holding companies and 
affiliated legal entities. In addition to meeting general requirements, statutory auditors of such 
entities must possess an additional certificate issued by the CBU upon meeting additional 
qualification criteria.
35. The LoAA requirements for statutory audits appear to be broader than, and different 
from, those in many other countries in that small companies are subject to mandatory audit 
if they are joint-stock companies. For example, the EU Fourth Company Law Directive sets 
maximum limits on the exemption criteria, but Member States are permitted to set lower size 
criteria, thereby exempting fewer companies. In this context a question arises whether any public 
benefit is derived from the audit of a small or inactive joint-stock company. 
36. The LoAA also regulates the conduct of the statutory audit of commercial enterprises. 
Only licensed audit firms employing licensed auditors are allowed to perform such audits. 
There are three types of Uzbek audit licenses: 

---

The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
- 12 - 
 

First level license: Audit firms with these licenses may provide only voluntary audits, 
must employ at least two certified auditors and have statutory capital of at least 1,500 times the 
minimum wage (approximately USD 30,000). 

Second level license: Firms with these licenses may perform voluntary and mandatory 
audits except for banks and open joint-stock companies with authorized/statutory capital 
exceeding 500,000,000 som (USD 300,000), must employ at least four certified auditors, 
including one auditor with an international designation (CAP, CIPA, ACCA), and have statutory 
capital of at least 3,000 times the minimum wage (approx. USD 60,000). 

Third level license: Firms with these licenses may perform any audit with the exception 
of banks (additional license needed), must employ at least six certified auditors and two 
international accountants (CAP, CIPA, ACCA), and have statutory capital of at least 5,000 times 
the minimum wage (approx. USD 100,000). 
All audit firms need to show they have liability insurance before they can obtain their audit 
license – auditors are liable under civil law. The minimum insurance coverage cannot be less than 
the total amount of audit fees a firm earns in a year. This may not be enough in instances where a 
negligent audit has precipitated far greater losses for users relying on the financial information. 
Only audit firms licensed in the Republic of Uzbekistan may provide audit services in the 
country. An audit license may be revoked or suspended only by a court decision. Once revoked, 
the license is gone forever – the firm cannot get it back. 
37. LoAA independence requirements for auditors include the following: Auditors or audit 
firms are prohibited from auditing entities where they, or close relatives (parents, spouses, 
brothers, sisters, children; brothers, sisters, parents and children in law), are founders 
(participants), shareholders or employees. Further, they cannot audit entities in which they have 
any interest other than that resulting from conducting the audit and providing accompanying 
services.
38. Statutory auditors are appointed by shareholders of the company:

The Law On Joint-Stock Companies (Art.65) stipulates that the general shareholders’ 
meeting appoints the external auditors for JSCs.

The appointment of the external auditors of banks is confirmed at the annual shareholders’ 
meeting.