of September 16, 1994 No. 882
About auditing service
This Law determines the organization of auditing service, the legal beginnings of its implementation, function, the right and obligation of auditors, provides creation of the system of independent financial control protecting property rights of the owner in the Azerbaijan Republic. The relations connected with auditing service are regulated by this Law, and also other legal acts of the Azerbaijan Republic, international treaties and agreements.
1.1. This Law extends to everything functioning in the territory of the Azerbaijan Republic (except for the Alyatsky free economic zone) the companies, the organizations and organizations (further - business entities), irrespective of pattern of ownership and organization-legal subordination.
1.2. The relations in connection with auditor services in the Alyatsky free economic zone are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".
Audit is independent check of clearness and reliability in financial accounting and the financial reporting of the business entities who are engaged in production and sales of goods, rendering services and performance of works.
Audit inspection can be obligatory or voluntary (on own initiative business entity). For business entities who under the law shall publish the financial reporting and also in the cases which are directly provided by the law, audit is obligatory, and in other cases - voluntary.
Carrying out on contractual basis of check, examination, the analysis of financial and economic activities of business entities and submission of the conclusion in writing, establishing financial accounting, confirmation of reliability of reporting data and rendering other services in the field of the financial and economic relations according to professional activity of the auditor (the authorized purposes of auditing organization) are considered as auditing service. The auditing service does not exclude check of activities of business entities by state bodies within their powers.
The independent auditor is the physical person who acquired the right independently to render auditor services in the territory of the republic in the license of Auditor chamber of the Azerbaijan Republic (further "Auditor chamber").
The auditing organization is the legal entity who acquired the right to render auditor services in the territory of the Azerbaijan Republic in the license granted by Auditor chamber for which this type of service according to its charter is the single field of activity.
The auditing organization is created by one and more founders according to the procedure, determined by the Civil code of the Azerbaijan Republic.
For receipt of the right to be independent auditor in the territory of the Azerbaijan Republic it is required:
a) be citizen of the Azerbaijan Republic;
b) not be the deprived court verdict of the right which took legal effect to hold certain positions in the field of the financial and economic relations or to be engaged in certain type of activity, repayment in the procedure for the criminal record connected with similar punishment established by the legislation;
c) have the higher education on specialties of financial accounting, the financier, economist and lawyer and length of service at least three years in the specialty;
d) pass examinations for the independent auditor. Person having criminal record for crimes for profit which are not extinguished cannot be the auditor.
The foreign citizen having the right to render auditor services in the country can from the formal permission of Auditor chamber have the specified right also in the territory of the Azerbaijan Republic.
Exams are held for rank of the auditor by the commission appointed by Auditor chamber.
Examinations will be organized according to the procedure provided in Regulations on Auditor chamber.
The audit opinion is the official document certified by the sign and seal of the auditor (auditing organization), which is reflecting assessment by it of financial condition of business entity, legality of its financial and economic activities, reliability of Articles of the annual financial reporting, general condition of financial accounting and having legal value for all legal entities and physical persons, state governing bodies, and also for judicial authorities.
The single form of audit opinion and requirements imposed to its creation are established by Auditor chamber taking into account relevant requirements of the Civil code of the Azerbaijan Republic.
For the purpose of the organization of state regulation of auditing service, project development of regulations in this area and systems of the actions aimed at the development and enhancement of auditing service in the Azerbaijan Republic of protection of interests of the state, business entities and auditors (auditing organizations), control of observance by auditors (auditing organizations) in the activities of the requirements following from this Law others legislative and regulatory legal acts, the Auditor chamber of the Azerbaijan Republic is created. Activities of Auditor chamber are regulated by Regulations on it.
According to Item 32 of article 109 of the Constitution of the Azerbaijan Republic the provision of Chamber of auditors affirms and her head is appointed.
Independent auditors and auditing organizations after passing of state registration act on the basis of the license granted for a period of 5 years.
The auditor has the right to be engaged in auditor activities from the moment of receipt of the license granting the right to be engaged in auditor activities. For implementation of business activity without formation of legal entity independent auditors are as appropriate registered.
The auditor performs the activities independently or under the contract with auditing organization. He is forbidden to be engaged in other activities.
Independent auditors use the diary reflecting their activities.
The diary is submitted them in Auditor chamber for control of their activities and quality check of the booked audit.
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