Azerbaijan, Baku / corr Trend I. Khalilova/ A consultant will be tendered to provide an assessment of all material and non-material assets of the State Oil Company of Azerbaijan (SOCAR) as of 1 July 2007. SOCAR will sign a contract with the consultant soon. It is done in accordance with SOCAR's procedures on transition of the International Financial Accountancy Standards (IFAS).
"The efficiency of work done here enables us to suppose that from 1 January 2008 full transition of SOCAR, as well as its organization of public significance, to the IFAS will be ensured. PricewaterhouseCoopers, an international audit company, is rendering SOCAR consultative services on this issue.
An application has been developed at the company's assistance. To ensure full transition to international standards and appropriate work has been launched on rendering consultations in the next stage, designing of necessary methodology for application of information technology and relevant software, conduct of training, planning of business processes, and development of financial reports in line with the IFAS as a result of 2007.
PricewaterhouseCoopers held courses for sixty employees of SOCAR on IFAS. Definite courses were conducted for the SOCAR Communications and Information Technology Department for development of relevant software.
SOCAR's transition to IFAS does not necessitate its international audit every year. SOCAR does not consider it necessary. Moreover, the international financial institutes, which earlier insisted on auditing SOCAR's fiscal activities by a world-renowned audit company, now passed on this requirement. Particularly, such a requirement was also established by the EBRD within the framework of the Shah Deniz field. SOCAR considers its international audit by the Marketing and Economic Operations Department, which is directly involved in conducting oil and gas contracts, as expedient.
SOCAR Enterprises can invite their choice of international auditors. The audit of SOCAR is a huge undertaking and requires big expenses. At the beginning of 2000, SOCAR had such experience.