The transformation to international standards for accounting and auditing is underway. In 1998 the Ministry of Finance adopted accrual accounting and is in the process of bringing national accounting standards closer to international standards. In theory enterprises should produce two sets of accounts; one according to national accounting standards and another one according to tax rules. However, most enterprises do mostly tax accounting. Only foreign companies and those local companies with foreign investors or seeking an international listing or foreign loans use international accounting standards and have their financial statements audited. Such enterprises would have to produce three sets of financial statements; one according to national standards, one according to tax accounting rules and one according to international standards. Given the limited demand for financial statements audited according to international standards, the auditing profession is still in its early stages of development.

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