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QUALIFYING REQUIREMENT OF CANDIDATE TO AUDITORS
Content.
Introduction.
1. Education requirements of
candidates.
2. Organization and holding of
promotion.
3. Forms and methods of
continuing education.
4. The Code of Ethics for
Professional Accountants.
Conclusion.
List of references.
Introduction.
In the Message of the President of Kazakhstan to the nation
"The strategy "Kazakhstan-2030" at a NEW stage of development of
Kazakhstan" in the capacity of it of comprehensive modernization defined
the most important 30 guidelines of the domestic and foreign policy.
One of such directions in terms of liberalization is to
provide the new level of sustainability and competitiveness of the financial
system of the Republic of Kazakhstan [1].
For my part, I agree thoroughly with the authors that the
most important effective arm of financial system is financial control.
Financial control it is a total control of the legality of
business entities for effective of social and effective development of country
and its regions.
In Kazakhstan, the financial control in the form of state
financial control and auditing. Therefore, it is in the process of gradual
improvement in accordance with the jurally state.
At present, an audit as an independent system of financial
control of economic entities is gradually becoming to the everyday life of our
society.
Consequently, the state and professional organizations
raises high requirements for the training and certification. These requirements
available to the International Standards on Auditing.
In turn, in the system of financial control in term of
market economy of Kazakhstan an important place is an audit companies. They
carry out an independent task and analysis of financial accounting
organizations and individual entrepreneurs.
1. Education requirements of candidates.
Auditor’s activity is specific and requires high skills of
qualification characterized theoretical and methodological knowledge as well as
practical experience.
Auditor's work is strictly organized process, which is
inherent specified period and infringements of accounting.
Meanwhile, basis requirements indicated in the Law on
Auditing, the Code of Ethics for Professional Accountants, and the Code of
Ethics for Auditors of Kazakhstan also the International Standards on Auditing.
In addition, the activity of auditing firms submit to external quality control
on the part of professional organizations and obligatory insurance of civil
liability for customer injury [2,3,4].
By the Law on Auditing of the Republic of Kazakhstan and set
the certification rules that the aspirant (candidate) to auditors must have an
impeccable reputation, and have higher education and work experience for a
minimum 3 years in economic, financial, legal fields or in research of
scientifically activity of accounting, should pass current certification [2,5].
However, many candidates have a disparity of knowledge
[5,10].
In the legislation on auditing, there is no requirement of
higher and secondary or legal education.
Meanwhile, the legislation established that the candidate
have work experience and should know to provide of auditing and bookkeeping
[5].
Based upon the above, candidates to auditors should take the
knowledge in period of labor activity in order to identify him to a work over
taking examination.
Make a point that the involvement the candidate to a
performance task him should be clearly defined his charges.
The auditing organizations have a conformity assessment
procedure in order to reviewing officers.
Meanwhile, the international practice shows the need for
responsibility in preparing for the qualification exam not only candidates but
also the auditing organizations where they starts to work.
As Sheremet A.D. notes in his article "accepts for
employment of auditing organizations officer is a professional junior staff
given higher education will give the foundation of technical knowledge,
professional values and skills. These professional junior staff must undergo a
training program within of auditing organizations including in SROs in order to
get appropriate knowledge and practice. In this case, each entrant is approved
individual professional program. The relevance of this program is verifying
their periodic monitoring. In subject to alteration of requirements for areas
may amend to correction [6].
In turn fully support Sheremet's A.D. opinion that is
appropriate to allow to candidates as a candidate to judges, notary public, and
lawyers set the order of probation that suggests taking a qualifying task. This
procedure provides a significant degree of preparation of the candidate for the
exam and obtaining the necessary knowledge and experience.
In addition, Beisova P.S. suggests that auditors should have
the personal quality that gives the opportunity to operate in accordance with
auditing principles.
Here is a list of the primary variables:
1. Concentration it is the ability to discernment the main
thing;
2. Susceptibility it is the ability to keep in a moment of
essence of problems;
3. Persistence it is the ability in order to achieve the goals
despite of differences overcome difficulties and keep to planned course;
4. Flexibility it is the ability to see the objects from
different perspectives and adapting to changing circumstances;
5. Self-discipline it is the ability of planning
interconnected process of auditing;
6. Sociability it is the ability to communicate at work with
other people as from production worker ending with higher managements, and
maintains control during a lot of interviews;
7. Verbal abilities it is the ability to express clearly
their thoughts and ideas both of written or oral forms;
8. Technical
competence it is the ability to research and determine the level of standard
system compliance at all stages "production" process;
9. Independence it is the ability to work and act
independently;
10. Improvement professionalism it is the ability to support
their competency in implementing of QMS auditing.
Indeed, presence both of entry-level and practice auditors
of theoretical and practical knowledge but also availability of personal moral
principles and qualities characterizing their as an organized, responsible and
fair employee. Because their works based on the auditor's assessment of the
economic entities where the important thing is checking on compliances of the
subject to the current legislation. Also the auditor should research financial
materials and identify deliberate or non-deliberate distortion in financial
statements of subjects.
2. Organization and holding of promotion.
In the Law on Auditing in the Republic of Kazakhstan defines
the main directions for assessment of auditors.
Checking the qualification of the candidate takes the form
of qualification examination. The order of the qualification examination in
particular providing the order of participation of the candidate in the
qualifying exam and a procedure for determining of a qualifying examination
establishes by Ministry of Finance of the Republic of Kazakhstan.
The list of questions proposed to a candidate who consists
of disciplines establishes by the commission set forth in the Rules of
certification [5].
A procedure for establishment of the commission identifies
by the Rules of forming and activities of Qualifying commission certification
of candidate to auditors in the Republic of Kazakhstan was adopted by the Order
of the Ministry of Finance of 19.03.2009 [9].
Qualification commission can only be created by the
professional organizations with a numerous number of members adopted by the Law
on Auditing.
While the standard of individually trained Commission
members is high in all mandated tasks and there are eternity quality control,
monitoring compliance with international auditing standards, the development
and implementation of its own internal standards organizations and ethical
requirements.
We believe that Kazakhstan should raise the level of
certification exams in order to increase the confidence of investors to
domestic enterprises.
3. Forms and methods of continuing education.
To provide of auditors qualifications should include:
in-house training, probation in auditing organizations, participation in
conference, work in Committee, writing articles, papers necessity for an
auditors.
Undoubtedly, continuous professional development improves
the qualification of auditors that would extend the professional knowledge and
skills.
Auditor may need highly specialized qualification to
participate in audits of financial statement of specific economic areas (for
example banking, insurance, stock exchange, extra budgetary funds, institution
of investments) and fulfillment of specific types of work (audits of
multinational companies, consolidated financial statements according to IFRS).
We believe that the developments of professional audits
activity intends to support preparation and certification of specialists and
the annual upgrading their qualification. Impossible to combine an auditing
with the other types of business.
We agree with Sukhanov’s A.A. argument that “the system of
certification of auditors should not end with the qualification examination in
established order. Even more important is the organization of the continuous
qualifications of auditors. The minimum duration of training set by the
organizations of auditors for their members and cannot be less than 120 hours
for three consecutive calendar years but not less than 20 hours each year” [6].
4. Code of Ethics for Professional Accountants.
Here is one condition more of auditors it’s Code of Ethics.
The first Code of Ethics was developed in 1994, but in 2006,
it has involved within the requirements not only the law but also of modern
standards.
The president of Republic of Kazakhstan Nazarbayev N.A. “We
have grown where we can put the responsibility on issues related to a tolerance
to business and control over the quality or safety of products and services
from the state to various civil institutions” speaking on October 2003 at 10th
seminar of entrepreneurs of Kazakhstan.
In pursuance of this order, Kazakhstan had the great work.
Normative legal acts undergo in examination in accredited professional and
community associations. The necessities of decrease of administrative barriers
and graduated transfer of government functions to business have repeatedly
drawn the attention the Prime Minister Massimov K.
Auditing aims is rendering audits service at the highest professional
level. This is impossible without the professional ethics.
Ethics
is a system of moral norms of human behaviour, a particular profession and
community group.
Code
of Ethics of Kazakhstan adopted in 21th of July 1995 by the Conference of the
Court of Auditors consists of 13 chapters.
The Code of Ethics sets
the standart of conduct auditors and fundamental principles.
The Code of Ethics
emphasizes that «auditing aims is to operate in accoardance with the highest
professionalizm for achieving the maximum permissible level».
For achieving this goals
it is necessary to comply the following requirements: reliability,
professionalism, quality of service and trust [4].
The section describes the
principles of the independeces.
In paragraph 8.5.
«Provide service to clients» «When the auditor not only audits but provides
other services to client this case he should not take the management decisions
because the responsibility decision remains Committee of directors and
administration» [4].
Services of auditors in
the capacity of management and taxation are called consulting. Such services
will not affect to the independence of auditor. Auditor must be careful to not
go beyond consulting functions and not intrude into of making management
decisions.
If auditor prepare to
customer an accointing documents he should be fulfilled the following
requirements:
1.
Auditor should not consists in any relationship with client; should not in
any conflict of interests. That would lead to the descruption of integrity or
independence;
2.
Customer should be responsible for the financial statements;
3.
Auditor should not be like an employee, or a leadership officiating
denumerable operations of an enterprise;
4.
Auditors preparing accounting documents are not involved in to validate
of documents.
In the 10th
“Activities inconsistent with auditor’s practice” noted that two or more
professional service did not affect the integrity, objectivity and
independence.
In the Code of
Ethics of the Kazakhstan has the whole subject about auditors: “Conflict
resolution”, “Tax practice”, “Publicity” (information about auditors where it
shall not be disclosed), “Payment under a contract”, “Monies of client”,
“Relations with other auditors”, “Supply some services” [4].
It is well known
that the general theory of ethics is a source for all professions. In this
case, the Code of Ethics gives appropriate recommendations to auditors.
However, it should
be noted that in the Code of Ethics of auditors did not include rules that have
been established it is our way subject to national, historical and
socio-political circumstances.
A characteristic
feature of audit profession is responsible for the results of his work.
Therefore, auditing standards intended to the public interests not only of
client’s interest. On this basis, auditor’s works in the best interest of
society and private code of honour is the Code of Ethics.
5.Conclusion.
To sum up of this
can be said that qualification requirements of candidates to auditors is
necessary to meet set by legislation.
It should be
mentioned that in the correct choice of audit organization you should be
selected with the best reputation, or which customers are served. Significant
will request complimentary remarks about audit organizations of past and
present clients.
Moreover, you must
beforehand the contract for audit services in order to check the quality and
professionalism for short time period.
Before you sign the
contract with audit firms you need to make sure that the auditor’s certificate
are not cancel.
Undoubtedly,
auditor’s work is very prestigious and interesting. It encounter with the
analysis of economical activity of several organizations. Auditor’s profession
values is very strong, because for its realization requires mastership of
accounting as well as legal knowledge.
Currently, demand
for qualification auditors is high. It is related as an objective economical
situation as under to a high level in the audit.
Independent auditor
is a power and authority and the quality of the audit dependent on the technical
and administrative competence itself.
1. The Message of the
President of Kazakhstan to the nation “The new Kazakhstan in the new world”.
2. The Law on Auditing
of the Republic of Kazakhstan from 20th of November 1998 ¹304-I.
3. The Code of Ethics
of Professional Accountants adopted in 30th of June 2006.
4. The Code of the
Court of Auditors from 21st of July 2005, the Code of Ethics of
Kazakhstan”.
5. Ruled of conducting
of candidates to auditor’s adopted by the Order of the Ministry of Finance of
the Republic of Kazakhstan from 26th of July 2006 ¹273.
6. Sheremet A.D., PhD,
the article “Audience Education”, Journal “Audit” ¹7-2012 from 28th
of June 2012.
7. Sukhanov S.S., the
article “Improving education system of auditors”, Journal “Audit” ¹8-2012 from
16th of August 2012.
8. Beisova P.S.,
tutorial “Quality audit” published in 14th of October 2008.
9. The Rules of
forming and activities of Qualifying commission certification of candidate to
auditors in the Republic of Kazakhstan was adopted by the Order of the Ministry
of Finance ¹115 from 19th of March 2009.
10. Government Regulation of the
Republic of Kazakhstan “On the approval of qualification requirements of
licensing of Auditing” from 17th of July 2007 ¹601.