Mongolia : Accounting and Auditing
This report provides an assessment of corporate sector accounting, financial reporting, and auditing requirements and practices within the enterprise and financial sectors in Mongolia. For purposes of this report, the corporate sector includes all private sector and state-owned enterprises. The report uses International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) as benchmarks and draws on international experience and good practices in the field of accounting and audit regulation to evaluate institutional capacity and make policy recommendations. Since 1993, the World Bank and other development partners of Mongolia have provided financial and technical support to help Mongolia develop a legal framework, facilitate accounting education and adoption of IFRS and ISA by enterprises, constitute a new professional body, establish the examination of certified public accountants, and strengthen accounting and auditing in both public and private sectors. As a result, Mongolia has made significant changes from the old accounting for planned economic system to a new market-oriented accounting system that follows international good practices. All key economic sectors in Mongolia rely on high-quality financial information, which requires high-quality private sector accounting and auditing. Reforms, liberalization, and deregulation to further enhance the Mongolian business environment must be supported by enhanced financial transparency and improved accounting and auditing practices. Increased levels of both foreign direct investment and domestic investment demand higher-quality financial information consistent with international standards. Continuing the strengthening and development of financial reporting, accounting and auditing, and the regulatory framework that governs them, will bring benefits to Mongolia and its citizens. In this context, this report sets out policy recommendations to enhance the quality of corporate financial reporting and foster a financial reporting platform conducive to sustainable private and financial sector growth, thus increasing access to global financial markets and other tools of the market economy.
Summary: | This report provides an assessment of
corporate sector accounting, financial reporting, and
auditing requirements and practices within the enterprise
and financial sectors in Mongolia. For purposes of this
report, the corporate sector includes all private sector and
state-owned enterprises. The report uses International
Financial Reporting Standards (IFRS) and International
Standards on Auditing (ISA) as benchmarks and draws on
international experience and good practices in the field of
accounting and audit regulation to evaluate institutional
capacity and make policy recommendations. Since 1993, the
World Bank and other development partners of Mongolia have
provided financial and technical support to help Mongolia
develop a legal framework, facilitate accounting education
and adoption of IFRS and ISA by enterprises, constitute a
new professional body, establish the examination of
certified public accountants, and strengthen accounting and
auditing in both public and private sectors. As a result,
Mongolia has made significant changes from the old
accounting for planned economic system to a new
market-oriented accounting system that follows international
good practices. All key economic sectors in Mongolia rely on
high-quality financial information, which requires
high-quality private sector accounting and auditing.
Reforms, liberalization, and deregulation to further enhance
the Mongolian business environment must be supported by
enhanced financial transparency and improved accounting and
auditing practices. Increased levels of both foreign direct
investment and domestic investment demand higher-quality
financial information consistent with international
standards. Continuing the strengthening and development of
financial reporting, accounting and auditing, and the
regulatory framework that governs them, will bring benefits
to Mongolia and its citizens. In this context, this report
sets out policy recommendations to enhance the quality of
corporate financial reporting and foster a financial
reporting platform conducive to sustainable private and
financial sector growth, thus increasing access to global
financial markets and other tools of the market economy. |
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