Republic of Kazakhstan : Accounting and Auditing

Abstract

This report on the report on the
 observance of standards and codes (ROSC) in Kazakhstan
 provides an assessment of accounting, financial reporting,
 and auditing requirements and practices within the
 enterprise and financial sectors in Kazakhstan. The report
 uses International Financial Reporting Standards (IFRS) and
 International Standards on Auditing (ISA), and draws on
 international experience and good practices in the field of
 accounting and audit regulation, including in European Union
 (EU) Member States, to assess the framework for financial
 reporting and to make policy recommendations. The policy
 recommendations aim to help the Kazakhstan Government to
 support the country's integration into the global
 economy, in particular through strengthening the corporate
 sector's accounting, financial reporting and auditing
 practices. The financial sector, which is dominated by
 private commercial banks, has been one of the fastest
 growing sectors in Kazakhstan. However, while lending to the
 private sector has increased, credit risk analysis remains
 underdeveloped and there are problems with assessing the
 underlying portfolios owing to a significant lack of
 transparency regarding related parties and ultimate economic
 beneficiaries. The role of the non-banking financial sector
 is still limited but growing. This report shows much remains
 to be done if Kazakhstan wishes to raise the quality of
 accounting and auditing practices to a level in line with
 more-developed economies.