In Uzbekistan, the obligatory audit is regulated by national legislation, particularly the Law of the Republic of Uzbekistan “On Auditing” and other related legal frameworks. The primary purpose of an obligatory audit is to verify the accuracy and compliance of a company’s financial statements with established legal and accounting standards.
Cases Requiring Obligatory Audit in Uzbekistan:
1. Joint Stock Companies (JSCs) – All JSCs in Uzbekistan are subject to obligatory annual audits.
2. Financial Institutions – Banks and other financial institutions must undergo an annual audit.
3. Insurance Companies – Organizations involved in insurance or pension provision are required to conduct an audit.
4. Funds – Public funds, including specialized or targeted funds, are subject to mandatory audits.
5. Organizations with Specific Financial Thresholds – Companies that exceed certain thresholds in annual revenue or the value of their assets must conduct an audit. The thresholds are determined by the law.
6. Strategically Important Enterprises – Large companies operating in critical sectors of the economy may also be required to undergo an obligatory audit.
Purposes of the Obligatory Audit in Uzbekistan:
• To confirm the reliability of financial statements.
• To ensure that the financial reporting complies with national and international standards.
• To enhance transparency and trust among shareholders, investors, and stakeholders.
• To assess internal control mechanisms and help mitigate financial and legal risks.
Audit Outcomes:
Upon completion of an obligatory audit, the auditor issues an audit report, which could be:
• Unqualified (positive) opinion – The financial statements are accurate and comply with applicable standards.
• Qualified (conditional) opinion – There are minor issues, but they do not significantly affect the overall reliability of the financial statements.
• Adverse (negative) opinion – The financial statements are inaccurate or misleading.
• Disclaimer of opinion – The auditor could not obtain sufficient evidence to express an opinion.
Obligatory audits play a crucial role in ensuring financial accountability, improving corporate governance, and maintaining investor confidence in Uzbekistan.