In this article, the main factors influencing the quality of auditing in the Republic of Kazakhstan are considered. Audit is an important tool for ensuring financial transparency, reliability of financial reporting and compliance with legal norms. The article reflects the problems of the audit field, including the shortage of professionally trained personnel, the need to comply with international audit standards, and the importance of ethical aspects of the independence of auditors. The study is based on statistical data on the development of auditing companies in Kazakhstan, as well as on the analysis of legislative and professional requirements for auditors. Proposals for improving the quality of auditing through the development of professional training, the use of modern technologies and the strengthening of regulation of the industry are presented. The novelty of the study is a comprehensive analysis of actual problems of audit activity using statistical methods and recommendations for their elimination. The contribution of the authors consists in the development of practical recommendations for improving the audit system in Kazakhstan and strengthening trust in audit conclusions.
This article discusses the main factors affecting the quality of audit in the Republic of Kazakhstan. Audit is an important tool for ensuring financial transparency, the accuracy of financial statements and compliance with legal norms. The article highlights the problems of the audit sphere, including the shortage of professionally trained personnel, the need for compliance with international audit standards and the importance of ethical aspects of independence of auditors. The study is based on statistical data on the development of audit companies in Kazakhstan, as well as an analysis of legislative and professional requirements for auditors. Recommendations are proposed to improve the quality of auditing by developing professional training, using modern technologies and strengthening industry regulation. The novelty of the study consists in a comprehensive analysis of topical issues of audit activity using statistical methods and recommendations for their elimination. The authors' contribution is to develop practical recommendations for improving the audit system in Kazakhstan and strengthening confidence in audit results.
Keywords: audit, audit quality, Kazakhstan, professional development, audit independence, international standards.
Explanation : This article examines the main factors affecting audit quality in the Republic of Kazakhstan. Audit is an important tool for ensuring financial transparency, correctness of financial statements and compliance with legal norms. The article shows the problems of the auditing field, including the shortage of professionally trained personnel, the need for compliance with international auditing standards, and the importance of ethical aspects of auditor independence. The study is based on statistical data on the development of auditing companies in Kazakhstan, as well as on the analysis of legislative and professional requirements for auditors. Recommendations for improving audit quality by developing professional training, using modern technologies and strengthening regulation of the industry are presented. The novelty of the study consists of a comprehensive analysis of actual issues of audit activity using statistical methods and recommendations for their elimination. The contribution of the authors is to develop practical recommendations on improving the audit system in Kazakhstan and strengthening confidence in audit conclusions.
Introduction. Audit quality in Kazakhstan plays a crucial role in ensuring the financial stability and stability of both individual companies and the economy as a whole. In the current situation, an effective audit is necessary to create an open system of control of financial flows, to prevent financial violations and to ensure compliance with tax and accounting standards. This is especially relevant in the context of growing international cooperation and increasing integration of Kazakhstan into the world economy, where the main requirements are compliance with International Auditing Standards (IAS) and International Financial Reporting Standards (IFRS).
The increase in demand for audit services in Kazakhstan is due to a number of factors, including the introduction of new regulatory norms requiring audit support, as well as an increase in the number of companies seeking to increase their reputation and investor confidence through audit findings. However, despite this growth, auditors face serious challenges, including a shortage of qualified personnel, insufficient opportunities for professional development, and difficulties in maintaining independence when conducting audits. These factors significantly affect the quality of services provided and raise concerns about the accuracy and objectivity of audit findings.
Materials and methods. Quantitative and qualitative analysis methods were used to conduct the research, which made it possible to obtain an objective and comprehensive view of the current state of audit quality in Kazakhstan. The main purpose of the study was to determine the main factors affecting the quality of audit services, to assess the current state of the audit industry and to propose measures for its improvement. The analysis is based on the collection of statistical data and conducting expert interviews, which ensure the reliability of the obtained results.
Quantitative data was collected from several sources, including official reports of the Internal State Audit Committee of the Ministry of Finance of the Republic of Kazakhstan, data from the Association of Auditors of the Republic of Kazakhstan, and publications of audit companies active in the Kazakhstan market, such as KPMG and EY. The sample included data on the number of audit companies, their growth dynamics, the number of certified auditors, as well as data on the annual volume of the audit services market. The data covers the period from 2020 to 2023, which made it possible to analyze the development trends of the audit market. In addition, regression analysis methods were used to determine the dependence of audit quality on variables such as auditors' professional experience, the number of audits conducted, and the volume of annual audit activities. The variance analysis method was used to compare the audit quality in companies of different levels — small, medium and large enterprises — in order to determine the differences in the level of professional training of auditors and the impact of corporate culture on the audit results.
In order to obtain qualitative data, interviews were conducted with audit experts, including heads of leading auditing companies of Kazakhstan and representatives of state audit bodies. Interviews are aimed at identifying actual issues and challenges that auditors face in their work, as well as collecting opinions on improving professional training and introducing new technologies into auditing processes. In addition, scientific publications on the topic of audit were analyzed, where aspects of professional training of auditors, the role of independence and ethics in ensuring audit quality, as well as the impact of changes in legislation on audit practice are considered. This analysis included publications of both Kazakh authors and foreign researches, which made it possible to conduct a comparative analysis and determine which solutions are successfully used in international practice and can be adapted to the conditions of Kazakhstan.
Statistical data processing using big data analysis software was used to evaluate the results.
This made it possible to evaluate in detail each of the factors affecting the quality of the audit. The main attention was paid to the professional training of auditors, their self-efficacy, as well as the influence of the corporate culture and internal control system on the quality of the conducted audits. Thus, the integrated method of data collection and analysis made it possible to identify the main problems and provide reasonable recommendations for improving the quality of audit services in Kazakhstan. Basic rules. Audit activity in Kazakhstan is regulated by the Law of the Republic of Kazakhstan «On Audit Activity» of 1998, which provides a legal basis for conducting audits in the country. According to this Law, an audit is an independent assessment of the organization's financial statements in order to confirm their correctness and compliance with international standards. The main tasks of the audit include checking the correctness of accounting, identifying possible violations, evaluating the internal control system and making recommendations for their improvement.
In recent years, the state has strengthened the regulation of auditing activities, which is connected with the need to increase the transparency and accuracy of financial reporting. In particular, since 2015, mandatory certification of auditors has been introduced in state bodies in Kazakhstan, which contributes to the professionalization of the auditing industry. Many organizations strive to comply with International Auditing Standards (IAS), which require audit firms to maintain a high level of professional training and ethical standards. In addition, the strengthening of state control and monitoring of the quality of audit services is aimed at minimizing the risks of financial violations and ensuring quality inspections.
The main factor affecting audit quality is the professional development of auditors. According to research [1, p. 57] high qualification of auditors directly affects their work results. Professional development includes both basic education and continuous professional development through participation in trainings, seminars and courses. In the face of dynamically changing standards and requirements, auditors must be ready to adapt to new situations and constantly improve their skills. The quality of the audit also depends on the availability of practical experience, which is confirmed by the survey data among the representatives of audit companies in Kazakhstan. Auditors with deep knowledge and experience can more accurately identify financial risks and violations. However, there is a lack of qualified personnel in the country, which causes certain difficulties in providing quality services, especially in the regions. Companies seeking to improve audit quality actively invest in employee training, as this has a positive impact on the audit firm's reputation and client trust.
Independence of auditors is an important element that ensures the objectivity and correctness of audit conclusions.
Ethical standards in auditing are aimed at avoiding conflicts of interest and ensuring impartiality during audits. The study of Beksultanov and colleagues [2, B. 94] noted that compliance with ethical rules directly affects the audit quality and trust level of clients and regulators.
Literature review. Many studies in the field of audit show the importance of compliance with international standards for quality assurance [3, p. 102]. Knechel et al. (2012) noted that the main success factors are auditors' knowledge and skills, risk assessment procedures and internal control systems [4, p. 386]. In their work, Carcello et al. (2002) emphasized that audit quality is directly related to the scope of work and competence of the audit team [5, p. 183].
Results and discussion. KPMG, being one of the «big four» audit companies, has a leading position in the audit market of Kazakhstan. KPMG's operations in the country are regulated by both national legislation and International Auditing Standards (IAS). The company pays attention to the quality of its services through strict adherence to standards, implementation of modern technologies and continuous training of its employees.
One of the most important aspects of KPMG's work is compliance with independence requirements, which is the basis for high audit quality. The company regularly conducts internal and external audits of the quality of its services, which allows it to maintain the high trust of clients and government authorities. According to the data of 2023, KPMG conducted more than 300 audits of large companies of Kazakhstan, most of them are international corporations and organizations with high requirements for audit quality. At the same time, KPMG client satisfaction indicators remain at the level of 90 %, which indicates the high level of professionalism and ethics of the company.
Table 1
Comparative analysis of audit quality indicators: KPMG Kazakhstan and foreign companies
|
Indicator |
KPMG Kazakhstan (2023) |
Deloitte (US/EU, 2023) |
|
Number of audits |
300 |
500 |
|
Customer satisfaction level (%) |
90 |
95 |
|
Application of data analysis technologies |
Average |
up |
|
Average seniority of auditors (years) |
10 |
15 |
|
Auditors' independence (assessment) |
up |
Very high |
|
Digitization of processes |
Primary |
Advanced |
Deloitte audit company, which is part of the «big four» conducting audits in the USA, Great Britain and European Union countries, was chosen for comparison with international experience. Deloitte is known for the high level of digitization of audit processes and the implementation of big data analysis technologies, which allows to significantly improve the quality of audits and reduce the risk of human error.
Unlike KPMG in Kazakhstan, where digitization of audit processes has not yet reached the highest level, Deloitte actively uses automated risk management systems and artificial intelligence technologies to increase the effectiveness of audits. These technologies allow auditors to focus on the more complex aspects of the audit by reducing the time spent on routine tasks. As a result, Deloitte clients in Western countries receive prompt and quality audit services.
The use of these technologies contributes to increasing the independence of auditors, as automated processes eliminate the possibility of human influence and errors in data processing. Consequently, companies that use advanced digital solutions demonstrate a high level of trust from consumers and government agencies, as evidenced by Deloitte's customer satisfaction statistics at 95 %.
Table 2
Statistics of auditing companies in Kazakhstan (2020-2023)
|
Year |
Total number of companies |
Number of certified auditors |
Market size (million tenge) |
|
2020 |
150 |
1,200 |
5,200 |
|
2021 |
160 |
1,300 |
5,800 |
|
2022 |
170 |
1,426 |
6,400 |
|
2023 |
180 |
1,500 |
6,800 |
Despite the success of international companies such as KPMG, the audit industry in Kazakhstan is facing a number of problems related to the quality of audit services. One of the main challenges is the lack of highly qualified personnel, which is especially noticeable in small and medium-sized audit firms that do not have access to the same resources for training and development as large international companies.
In addition, the level of digitization of audit processes in Kazakhstan is still low. Although companies such as KPMG have begun to introduce new technologies, most audit firms still use traditional methods, which limit their ability to identify risks and effectively audit clients' financial statements. The introduction of modern technologies could significantly increase the quality of audits in Kazakhstan, as this is happening in leading international companies. One way to solve this problem is active cooperation with international companies, training of Kazakh auditors in modern methods and increasing the level of professionalism. This includes the introduction of strict standards of ethics and independence, which are essential to increase confidence in audit services.
The analysis of audit quality on the example of KPMG and foreign audit companies showed that Kazakhstan is moving in the direction of improving the quality of audit services, but there are still some serious challenges related to the lack of qualified personnel and insufficient digitization of audit processes. In order to achieve a higher level of audit quality in our country, it is necessary to actively introduce modern technologies, strengthen the professional training of auditors, and increase the standards of ethics and independence.
Conclusion. Audit quality in Kazakhstan is an important factor in ensuring the transparency of financial reporting and confidence in the country's economic system. An analysis of the activities of KPMG, one of the leading international audit companies, showed that despite the achievements of such large players, the audit in Kazakhstan faces a number of serious problems. The main criticisms include the lack of qualified personnel, insufficient digitization of processes, and the need to strengthen independence and ethics standards in audit practice.
International companies such as Deloitte significantly surpass Kazakhstani firms in the use of advanced technologies of data analysis and artificial intelligence, which allows them to conduct deeper and more detailed investigations. The introduction of such technologies in Kazakhstan could significantly increase the quality of audit services, reduce risks associated with the human factor, and improve the quality of audit conclusions. The main factors affecting the success of the audit remain professional training of auditors, implementation of modern audit methods and tools, as well as strict monitoring of compliance with ethical standards. As the comparative analysis shows, despite the positive changes, there is still a lot to be done in order for Kazakhstan to achieve the high level of audit quality observed in leading foreign companies. Strengthening of state regulation, introduction of advanced technologies and analytical methods, as well as improvement of qualifications of auditors will help to significantly improve the current situation.
References:
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