World Bank Document

process, even though these were not mandated by law and were merely voluntary. The 
NAAA, supported by the CoA, led the most recent effort in 2008, which asks firms to voluntarily 
participate in a peer review program. The project is not yet in operation as some issues, such as 
confidentiality, must be addressed first. 
65. The Republic of Uzbekistan imposes an obligation on audited entities to submit their 
audit report to tax authorities within 15 days following the day the financial statements are 
issued. This requirement effectively makes the tax authorities part of the audit quality assurance 
process.
66. It is difficult to evaluate the effectiveness of the quality assurance system in the 
Republic of Uzbekistan. The system is controlled by the MoF and inspections are performed by 

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The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
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non-practitioners. While this solves the issues usually associated with peer reviews and 
independence, it is likely that most of these inspections consist primarily of verifying formal 
compliance, particularly with licensing requirements, which are relatively easy to inspect, without 
probing the substance of economic events and an analysis of compliance with auditing standards. 

III. 
ACCOUNTING STANDARDS AS DESIGNED AND AS PRACTICED
67. The government of Uzbekistan decided to develop National Accounting Standards 
(NAS) inspired by IAS/IFRS. The MoF also releases supporting regulations and guidelines that 
elaborate on the standards or provide detailed procedures for accounting and documentation. The 
MoF develops NAS gradually, and the focus is on those that best correspond to the needs of 
Uzbek market. Furthermore, the MoF adopts only the standards that do not contradict Uzbek 
civil, companies or tax legislation. As a result, there are significant differences between NAS and 
IFRS, leading to a standards gap.
68. A comparative analysis of NAS and IFRS demonstrates that there are significant