The aim of the closing conference held in Bishkek on 08 June 2022 was to share key achievements of the Kyrgyz Audit and Financial Reporting Enhancement Project (KAREP) and lessons learned identified as part of an independent evaluation as well as to discuss next phase of reforms in the field of accounting and auditing. The event was attended by about 35 participants, representing KAREP key beneficiaries and including policy makers, regulators, representatives of the academia and of the profession and it was organized in a hybrid mode, i.e., face to face and online.

KAREP was implemented through a combination of recipient, represented by the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic (SRSFM), and World Bank (WB) led actions. It was funded by the Swiss Economic Cooperation Office (SECO) and administered through a single donor trust fund, by the Centre for Financial Reporting Reform (CFRR).

The higher-level impacts achieved with KAREP support are significant and visible in the improved legal framework, the education system, and the clearer understanding and acceptance of the roles of the SRSFM as regulator, the Professional Accounting Organizations (PAO) as professional service providers for accountants and auditors and the Universities for their role in accounting and audit education.

The state of readiness for starting the improved audit quality inspections system, the near achievement of full and associate membership of International Federation of Accountants (IFAC) and the launch of the public registry of auditors and the depository of financial statements would consolidate the corporate financial reporting framework in the near future.

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KAREP: Key Achievements, Lessons Learned and Next Phase of Reforms

It was concluded that the KAREP has reached its overall objective of strengthening the corporate financial reporting framework in the Kyrgyz Republic and provided a strong foundation for the remaining elements of reforms to be achieved in the medium term. However, speakers mentioned that there is still a significant volume of work to be done, in particular to ensure that all bylaws, linked to new legislation are adopted as soon as possible so that to allow proper enforcement of new legislation. In addition, new topics are coming on global agenda regarding corporate financial reporting and the Kyrgyz profession, regulators and academia should continue to be actively engaged to enforce achievements and to continue the paths of reforms.  

As part of this event the WB team disseminated the Report on the Observance of Standards and Codes in Accounting and Auditing (A&A ROSC) for the Kyrgyz Republic. The report concluded that having recently strengthened the legal environment for the accounting and auditing professions, the regulatory framework in the Kyrgyz Republic should now be further strengthened to enforce international good practices. Key experts, representing important sector of the Kyrgyz economy expressed their feedback and discussed critical issues in corporate financial reporting following A&A ROSC findings and recommendations.