World Bank Document

about the relationship between internal and external audit, and the role of internal audit in 
a company. According to the regulation on internal audit issued by the Cabinet of Ministers in 
2005, all entities with assets exceeding USD 1 million must have an internal audit department led 
by an auditor holding an external audit certificate. Internal auditors are responsible for internal 
controls, assessing the work of executive bodies and other corporate functions, compliance with 
legislation, accuracy of accounting records, safeguarding of assets and implementation of 
corporate governance principles. Often, the work of internal auditors is perceived as a supplement 
to the work of external auditors.
C. Professional Education and Training
50. There are 24 universities and 40 other institutes of higher learning in the Republic of 
Uzbekistan.
17
The Uzbek Law on Education established a two-level system of higher education:
Bachelor and Master Level. Education is multilingual; studies can be done in Uzbek, Russian, 
English, Karakalpak, Kazakh, Kyrgyz and Tajik languages. 
51. Progress in reforming Uzbek accounting and auditing has been coordinated with 
progress in professional education and training. This approach, similarly to accounting reform 
efforts, has led to minimizing the disconnect between academia and the profession; nevertheless, 
further progress will be needed to support the reforms. The Minister of Finance issues decisions 
on the content of business and economics education at both baccalaureate and master levels 
before students move on to their pre-qualification studies. Since the audit certification program 
consists of only four subjects, would-be auditors need to get a great deal of their relevant 
education at university. But Uzbek university education is not adequate in this context. On a 
cursory review, for example, the prescribed academic content does not fully cover the “grey text” 
of International Education Standards (IES) in accounting, particularly, IES 2. IES 4 (on Ethics) is 
not covered at all, while IES 3 to 8 are covered to some extent. Since IESs focus on 
competencies, while Uzbek education content focuses on specific, formal content, any detailed 
comparison is difficult. In any case, the quality of Uzbek education programs was not the subject 
of a detailed assessment and, therefore, no comments are possible. It seems, however, that not all 
institutions of higher education have adapted their curricula to reflect current financial reporting 
requirements. Instead, they continue to teach “old” accounting with a focus on form over 
substance, as opposed to outputs (financial statements, including the notes). Not all university 
lecturers are experienced or have qualifications in NAS, NSA, IFRS and ISA-based financial 
reporting. Furthermore, although there have been efforts to update the skills and knowledge of 
university professors in the past, more current training and skills development programs are 
needed.
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Source: www.gov.uz. 

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The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
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52. In addition to building better skills and knowledge of teaching staff, there is a need to