Self-regulation of audit activities
The National Chamber of Entrepreneurs RK "Atameken" announces a public discussion on alternative analysis of regulatory impact in the issues of self-regulation of audit activities based on mandatory membership.
An alternative analysis of the regulatory impact showed that the most effective way to further regulate the audit activity is to introduce self-regulation based on mandatory membership.
The introduction of the institution of self-regulation has the following advantages:
- Reduction of the state authorization tool by delegating the function to the professional community;
- Increasing the competitiveness of entrepreneurs due to the multiplicity of SROs and the evaluation of their activities by the state and consumers of audit services. The SRO is subject to annual audit, and there is a rotation of the SRO executive body every 3 years.
- introduction of a rating system for assessing the activities of SROs as a main element of competitiveness, as well as strengthening the relationship of SROs with consumers of services (the level of reputational dependence is affected by complaints against SRO members, disciplinary, administrative and criminal liability of SRO members, compliance with the qualification requirements of SRO members, numbers of inspections and results of inspections, conducted by SRO, etc.);
- Development of the institution of pre-judicial regulation through the introduction of property liability of SRO members along with the liability provided for in civil procedure;
- Improvement of standardization issues. Qualitative transition to international standards. The SRO in an obligatory order agrees standards and rules with the Ministry of Finance, MNE and NCE;
- an effective mechanism of control and supervision. Effective fight against dishonest auditors. The highest responsibility is the exclusion from the SRO, as a ban on the implementation of professional activities. At the same time, the state control over the SRO is intensified with the application of measures in relation to responsibility for poor-quality work (warning, order on re-election of the SRO staff, suspension, exclusion from the SRO registry, initiation of ARVs for return to licensing).
The proposed model of SRO auditing activities can be found here
Your suggestions and comments on the proposed model can be sent by 13.03.2017 to a.turezhanov@palata.kz or by phone. +7 7172 91 93 55 (Aydin Turezhanov).
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