Auditors and accountants discuss how to improve rating of Kazakhstan in WEF’s Global Competitiveness Index
The issues of accounting and auditing in the framework of improving the rating of Kazakhstan in the Global Competitiveness Index (GCI) of the World Economic Forum have been discussed on the Atameken platform.
Last year, Kazakhstan took 100th place among 140 countries according to the GCI indicator - Strength of auditing and reporting standards. Remind that one of the ways to determine compliance with the indicator is a survey. In particular, the survey has the question: how strong are the audit and reporting standards in your country?
“Kazakhstan has applied international financial reporting standards for individual organizations since 2003 and international auditing standards since 2006, which was necessary in order to ensure that our organizations enter the international market and attract foreign investment,” deputy director of the Accounting and Audit Methodology Department of the Ministry of Finance RK Ak-bala Aliyeva said.
Currently, 166 countries adopt IFRS and ISA. In 2015 Kazakhstan conducted an assessment of the corporate reporting infrastructure, as a result it identified the problems in the field of financial and non-financial reporting and corporate governance. In particular, the following recommendations were received to resolve problematic issues:
-creation of an independent supervisory authority in the field of accounting and auditing;
-introduction a course on professional ethics to obtain a certificate of a professional accountant in accordance with the requirements of international standards for training accountants;
-introduction of a uniform code of corporate governance.
President of the Auditors’ Chamber of Kazakhstan Akan Arystan noted that there are 5 public joint-stock companies operating in auditing activities in the republic.
“We see that the number of complaints and unqualified audits is increasing every year. About 200 new specialists may appear in Kazakhstan a year. Each PJSC sets its own requirements and examinations for beginners. Therefore, the Ministry of National Economy initiated the creation of a unified Council,” Akan Arystan said.
In this case, the licensing of auditing and accreditation of PJSC will be held in the same mode.
“The business community also focused on ethical issues. This is an important question, since the investor will not invest in a country where the quality of services is low and tax is strict. We need to defend our own market first,” Leila Nurakhmetova, general director of the Association of Professional Accountants and Auditors of Kazakhstan, said.
It is worth noting that the subjects make up high-quality and reliable financial reporting, in Kazakhstan they apply a system of certification and advanced training. This makes it possible to obtain a certificate of an accountant and auditor, and improve their qualifications.
Remind that since 2014, a survey has been conducted on the indicator “Share of public interest organizations satisfied with IFRS and ISA standards” by analogy with the GCI. This indicator is implemented in the Depository and Financial Reporting and is a national indicator to calculate the proportion of satisfied users of international standards.
“If the survey for the GCI indicator covers 80 respondent enterprises, the Depository and Financial Reporting covers more than 3,500 organizations of public interest and provides an opportunity to reveal the reasons for the decline. As of March 1, 2019, 3,920,000 users visited the Depositary, including users from other countries,” Ak-Bala Aliyeva said.
In general, the meeting participants agreed on the need to improve the quality of services by Kazakhstani companies and the level of knowledge of accountants and auditors.
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