Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

The document ceased to be valid according to Item 1 of the Resolution of Board of the Central Bank of the Azerbaijan Republic of December 25, 2018 No. 25/2


Ministry of Justice

Azerbaijan Republic

On March 27, 2007 No. 3296

Approved by Board of National Bank of the Azerbaijan Republic the Protocol No. 10 Register No. 11 of February 28, 2007


It is approved

Auditor chamber

Azerbaijan Republic

February 12, 2007


Rules about requirements to carrying out external audit of banks and local branches of foreign banks

(as amended on on July 10, 2009)

1. General provisions

1.1. These rules are prepared based on the Laws of the Azerbaijan Republic "About National Bank of the Azerbaijan Republic", "About banks", "About auditing service", recommendations of the Basel Convention about bank control, and also other existing regulatory legal acts in the sphere of audit and establish rules about requirements to carrying out external audit of banks and local branches of foreign banks (further - banks).

1.2. Requirements of these rules do not extend to the external audit booked by National Bank of the Azerbaijan Republic (further - National Bank) and at the initiative of banks.

1.3. The standards of external audit required by these rules extend also to audit of affiliated economic societies of the banks uniting (consolidating) the financial statements according to the International Accounting Standards (IAS).

2. Basic concepts

2.1. The concepts used in these rules have the following values:

2.1.1. The auditor - auditing organization or the independent auditor having according to the legislation of the Azerbaijan Republic special permission (license). The concepts "external auditor" and "auditor" are used in these rules in identical value. For department of the external auditor from the internal auditor in the corresponding parts of these rules the concept "internal auditor" is used.

2.1.2. The positive conclusion - the audit certificate issued in case of confirmation of correctness and objectivity of the bank of opinion expressed in financial statements according to acting with IFRS is unconditional (or submissions of exact information on all important issues).

2.1.3. Qualified opinion - the audit certificate issued in case of impossibility of issue of certainly positive conclusion, however the factors or disagreements interfering it with administrators of bank are not so essential or convincing to refuse making the conclusion or to draw the negative conclusion.

2.1.4. The negative conclusion - the audit certificate issued because for disclosure of misstatement or incompleteness of the financial reporting because of essential and convincing disagreements with management of bank cannot be issued qualified opinion.

2.1.5. Refusal of making the conclusion - the audit certificate issued if failure of evidence because of availability of considerable and essential restrictions do not allow the auditor to express the opinion according to the financial reporting in work of the auditor.

2.1.6. The letter obligation - the written instrument reflecting conditions of audit inspection, including its amount and the purposes, obligations of the auditor to bank and bank before the auditor.

2.1.7. International standards of Audit (further - MSA) the standards prepared by Council for standards of the international audit and confirmation which is committee of the International Federation of Accountants, and used for verification of financial data for last period.

* The code of ethics for professional accountants;

* The international principles on confirmation types of activity;

* International standards on control of quality;

* International standards of audit;

* The international declarations on auditor activities.

2.1.8. Independent opinion - possibility of person to express the opinion irrespective of the factors capable to influence professional vision, objectivity, and also ability providently to be effective.

2.1.9. Independent vision - lack of the essential facts and conditions capable to result the third party having the relevant information in belief that the auditor lost trust from the point of view of the objectivity, and also professionalism.

2.1.10. The report to management (the letter with offers for management) - the written instrument issued by the auditor to bank after audit.

2.2. Restrictions in work of the auditor can be created by bank, and arise in certain cases from situation (for example, in case of establishment of impossibility of implementation by the auditor of the audit procedures recognized by the auditor necessary under the terms of the agreement if the term of the agreement or appointment does not allow the auditor to exercise control over calculation of inventory stocks, etc.). Restrictions, according to the auditor, can arise or in case of inadequacy of accounting documents of bank, or for the lack of opportunity to perform the audit procedures recognized by the auditor reasonable.

2.3. Disagreements with administrators of bank can arise in the absence of consent concerning adequacy by the elected auditor of policy of financial accounting, methods of its application or financial disclosures.

2.4. Other concepts used in these rules have the values corresponding to the concepts this in the Laws of the Azerbaijan Republic "About banks", "About financial accounting", "About auditing service" and other existing legal acts.

3. Audit standards

3.1. These rules require application of MSA in case of financial records audit of banks.

3.2. For assessment of the financial reporting of banks as criterion on accounting standards shall be used by IFRS.

3.3. If the legislation of the Azerbaijan Republic establishes other requirements to audit of banks in addition to requirements of MSA, these requirements shall be observed in addition to requirements of MSA.

In the presence of contradictions between the requirements and requirements of MSA established by the legislation of the Azerbaijan Republic, the legislation of the Azerbaijan Republic is taken as basis.

4. Independence of the external auditor

4.1. The external auditor shall carry out the inspection regardless of banks, their administrators and shareholders, including the shareholders who are owners of considerable share.

4.2. Independence of the auditor is based on his independent opinion and independent vision.

4.3. Independence of the auditor is considered lost when rendering on it considerable influence of the following dangers which cannot be reduced to acceptable level:


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