RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of September 19, 2018 No. PP-3946

About measures for further development of auditor activities in the Republic of Uzbekistan

For last years in the country the normative and legal and methodological base of audit is created, and also the simplified and termless system of licensing of auditor activities is implemented that allowed to create the market of auditor services and to provide the entry of domestic auditing organizations into large international networks of audit companies.

At the same time, number of problems and shortcomings interferes with further development of auditor activities and increase in the importance of auditor services for acceptance of management decisions and improvement of quality of corporate management among which:

the first, low level of credibility to auditing organizations, and also consideration of audit inspection as excessive and burdensome ministerial procedure, but not as guarantor of confirmation of reliability of the financial reporting;

the second, the available restrictions and practice of carrying out tenders on selection of auditing organizations quite often promote unfair competition, including price owing to what quality of auditor services and reliability of audit opinions decrease;

third, the operating system of special preparation and advanced training of auditors has formal character, does not provide the necessary professional training level and qualities of auditor services, including according to international standards of auditor activities that leads to fall of prestige of profession of the auditor;

the fourth, there is no effective external control system of quality of work of auditing organizations that in case of limitation of measures of legal impact of the licensing body does not allow to react to the facts of rendering low-quality auditor services and unfair actions of auditors quickly;

the fifth, incomplete compliance of national standards of auditor activities to the conventional international standards of audit that does not provide forming at foreign investors of understanding of reliability of the financial reporting of domestic enterprises.

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