The system of administrative-territorial structure of the Republic of Kazakhstan is based on the national Constitution and Legislation. In accordance with the regulatory framework, Kazakhstan has several administrative division levels:

• Republican level: central government exercises the supreme power.
• Regional level (including the city of republican significance): Kazakhstan is divided into 17 regions and three cities of republican significance – Astana, Almaty and Shymkent. Regions have their own administrations that deal with issues related to regional development, economy, social sphere, etc.
• District level: Regions are subdivided into districts, which usually have administrative centers. Districts also have their own governing bodies responsible for regulating issues concerning specific territories.
• City (including city districts) and rural levels: Cities and villages are self-governing units on the territory of districts. Cities are divided into administrative districts (if such division is actual for the city), while rural districts cover the rural areas.

Public auditing is regulated by the Law of the Republic of Kazakhstan “On State Audit and Financial Control”^[1], General Standards of State Audit and Financial Control, Procedural Standards of External State Audit and Financial Control.

The system of public audit and financial control bodies consists of:

• The Supreme Audit Chamber of the Republic of Kazakhstan
  (SAI Kazakhstan), which is a Supreme Audit Institution of Kazakhstan;
• Audit commissions of regions, cities of republican significance, the capital city (hereinafter referred to as regional audit commissions);
• The authorized body for internal state audit;
• Internal audit services of central government bodies, with the exception of the internal audit service of the National Bank of the Republic of Kazakhstan, local executive bodies of regions, cities of republican significance, the capital city.

The authorized bodies of external public audit in Kazakhstan include
SAI Kazakhstan and regional audit commissions.

SAI Kazakhstan is an independent body, directly accountable and subordinated to the President of the Republic of Kazakhstan. SAI Kazakhstan does not have regional offices. SAI Kazakhstan carries out external audit in relation to the republican (central) budget. Since 2023, SAI Kazakhstan was empowered to audit local budget funds on the following grounds:

• at the instruction of the President of the Republic of Kazakhstan and his Administration;
• at the request of state bodies, regional audit commissions, individuals and legal entities;
• upon the information from law enforcement bodies.

Regional audit commissions are independent bodies, which carry out external state audit at the local level over the planning and execution of the local budgets (budgets of the city of republican significance, the capital city, districts, cities of regional significance), use of state assets and quasi-public entities. The auditees of regional audit commissions are institutions financed and (or) receiving funds from local budget as well as state revenue agencies and other authorized state bodies that ensure the completeness and timeliness of receipts to the local budget.

A regional audit commission submits an annual report on the execution of the local budget for the reporting financial year to the local legislative body (the maslikhat). All stages of audit activities, including audit materials and conclusions are subject to quality control. Quality control is carried out in the manner prescribed by the relevant standard developed by SAI Kazakhstan.

^[1] Law of the Republic of Kazakhstan dated November 12, 2015 No. 392-V ZRK

The SAI Kazakhstan interacts with Regional Audit Commissions in various areas. According to the Law of the Republic of Kazakhstan “On State Audit
and Financial Control”, the SAI Kazakhstan:

1) provides methodological assistance to the regional audit commissions;

2) organizes retraining and advanced training of employees of state audit and financial control bodies, including Regional Audit Commissions;

3) organizes activities to confirm the knowledge of candidates for state auditors who will carry out external state audit both at the republican and local levels, in accordance with the rules of certification of persons applying for the qualification of the state auditor. SAI Kazakhstan chairs the National commission for certification of persons applying for the qualification of a state auditor;

4) develops and approves the rules for conducting external state audit and financial control, including, inter alia, the forms of documents adopted following the results of the state audit;

5) develops and approves a model regulation on regional audit commissions;

6) upon agreement with the Executive Office of the President of the Republic of Kazakhstan, submits to the legislative bodies (maslikhats) of regions, cities of republican significance, the capital city a submission on the appointment of a chairman of the Regional Audit Commission;

7) ensures the development, functioning of a unified database on state audit and financial control for the purpose of exchanging information with state control and supervision bodies, other state bodies, auditees, as well as for conducting electronic state audit;

8) represents, on behalf of the Regional Audit Commissions, their interests in cooperation with central state bodies;

9) assesses the activities of state audit and financial control bodies, including Regional Audit Commissions.

SAI Kazakhstan chairs a Coordination council of state audit and financial control bodies, which is composed of the SAI Kazakhstan, Regional Audit Commissions, Ministry of Finance of the Republic of Kazakhstan, Committee of Internal State Audit, internal audit services. The Coordination council of state audit and financial control bodies reviews law enforcement practices in the field of state audit and financial control, and compliance with state audit and financial control standards. Decisions of the Coordination council of state audit and financial control bodies are mandatory for the state audit and financial control bodies.