Kazakhstan Auditor Attestation key terms

Globally recognized standards issued by the IAASB that set out how an auditor plans, performs and reports on a financial statement audit, adopted in Kazakhstan as the governing audit methodology.

The risk that the auditor expresses an inappropriate opinion on financial statements that are materially misstated. It combines inherent risk, control risk and detection risk and drives how much work the auditor performs.

The threshold above which omissions or misstatements could reasonably influence the economic decisions of users of the financial statements, used to plan the audit and evaluate uncorrected errors.

Information used by the auditor to reach the conclusions on which the audit opinion is based. It must be sufficient in quantity and appropriate in relevance and reliability.

Applying audit procedures to less than the whole population so that each sampling unit has a chance of selection, allowing the auditor to draw conclusions about the entire population.

Audit evidence obtained as a direct written response from a third party, such as a bank or customer, in paper or electronic form, confirming balances or terms independently of the client.

The formal written output of an audit that states the auditor's opinion on whether the financial statements are presented fairly, together with the basis for that opinion and required disclosures.

An auditor's opinion that is qualified, adverse or a disclaimer, issued when the auditor has sufficient evidence of material misstatement or cannot obtain sufficient appropriate evidence.

The assumption that an entity will continue operating for the foreseeable future. Auditors must evaluate whether significant doubt exists and report accordingly.

Those matters that, in the auditor's professional judgment, were of most significance in the audit of the current period's financial statements, selected from matters communicated with those charged with governance.

The policies and procedures designed by management to ensure reliable financial reporting, safeguard assets and prevent or detect misstatements, which the auditor assesses to plan the audit.

A set of principles-based accounting standards issued by the IASB that prescribe how transactions and balances are recognized, measured, presented and disclosed in general-purpose financial statements.

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The IFRS 15 model under which revenue is recognized when control of promised goods or services transfers to the customer, in an amount reflecting the expected consideration.

A promise in a contract with a customer to transfer a distinct good or service. Revenue is recognized as each obligation is satisfied.

A reduction in the recoverable amount of an asset below its carrying amount, requiring a write-down and recognition of a loss in profit or loss.

Income tax payable or recoverable in future periods arising from temporary differences between the tax base of assets and liabilities and their carrying amounts in the financial statements.

The tax levied in Kazakhstan on taxable profit of legal entities, calculated as revenue less deductible expenses adjusted under the Tax Code, with standard rate and specific exemptions.

An indirect tax on the supply of goods, works and services and on imports, collected at each stage of the supply chain and remitted by registered taxpayers to the budget.

The calendar period for which a taxpayer calculates and reports tax liabilities, typically a calendar year for corporate income tax and a quarter for value added tax in Kazakhstan.

The process by which a taxpayer is entered in the state register and assigned a taxpayer identification number, and for VAT, the separate registration required once thresholds are exceeded.

An organization that owns separate property, is liable for its obligations with that property, and can acquire and exercise civil rights and bear duties in its own name.

The aggregate value of contributions made by founders to a company, recorded in its constituent documents, which forms the minimum basis for meeting creditor claims.

A business form common in Kazakhstan in which participants' liability is limited to the value of their contributions, and profits are distributed in proportion to those contributions unless otherwise agreed.

A written agreement between employer and employee setting out work duties, place of work, pay, working time and rest, and the term of the employment relationship.

The accounting method in which every transaction is recorded with equal debits and credits, so that total debits always equal total credits and the balance sheet stays in balance.

A listing of all ledger account balances at a point in time, used to check that debits equal credits and as a starting point for preparing financial statements.

The structured presentation of an entity's financial position, performance and cash flows, comprising a statement of financial position, statement of profit or loss, and supporting statements and notes.

The technique of comparing relationships among financial statement items, such as liquidity, profitability and leverage ratios, to assess performance, trends and risk.

Evaluations of financial information through analysis of plausible relationships among financial and non-financial data, used in risk assessment, substantive testing and overall review.

The state of being free from relationships or interests that could compromise, or appear to compromise, the auditor's objectivity and professional judgment.

An attitude of questioning mind, alertness to conditions indicating possible misstatement, and critical assessment of audit evidence rather than automatic acceptance of management's representations.

A situation in which a person's personal, financial or other interests could improperly influence their professional decisions or objectivity in performing an engagement.

The degree to which an audit complies with professional standards and applicable law and provides reasonable assurance that the auditor's report is appropriate in the circumstances.

An objective evaluation of the significant judgments and conclusions of the engagement team, performed before the report is issued, by a reviewer not part of the team.

Software tools and scripts used by auditors to extract, sort, compare and analyze large volumes of client data to test controls and transactions efficiently.

The use of data analysis techniques on full client populations to identify anomalies, patterns and risks, supporting risk assessment and substantive testing beyond traditional sampling.

The chronological record of system activity and data changes that allows an auditor to trace a transaction from source documents through to the financial statements and back.

The state authorization required in Kazakhstan for audit organizations to perform statutory audits, granted upon meeting qualification, staffing and quality requirements.

The formal qualification process, including examination and professional experience, by which an individual obtains the right to practice as an auditor in Kazakhstan.