Is Audit Mandatory?

The Presidential Resolution dated September 19, 2018 “On measures for the further development of auditing activities in the Republic of Uzbekistan” published on the UzA portal is an interesting one and it touches upon not only the auditors themselves and audit organizations, but also a number of business entities. 

In particular, the expansion of the List of organizations subject to mandatory audits as of January 1, 2020 is an important innovation. That is, in the past they covered:

  • Joint stock companies;
  • Banks and other credit organizations;
  • Insurance companies;
  • Investment and such other legal and individual entities’ funds accumulating financial resources and their investment asset trust managers;
  • Charitable and such other public funds the sources of which are made up of voluntary deductions of businesses and individuals;
  • Extra-budgetary funds the sources of which are made up on account of mandatory deductions provided for by legislation and contributed by legal and individual entities;
  • Economic entities with a government share in the Statutory fund and the government unitary enterprises;
  • Stock and commodity exchanges.

Now, this List will also include any commercial organization, which simultaneously meets 2 of the following conditions at the end of the fiscal year:

  • book value of assets make up more than 100 thousand minimum monthly salary level (MMSL);
  • proceeds from sales of products (works, services) make up more than 200 thousand MMSL;
  • the average annual number of employees is over 100 persons.

Thus, business entities, which presumably correspond to aforementioned characteristics, should take into account that by the results of the 2019 fiscal year, the audit becomes mandatory for them.