Enterprises in Azerbaijan to be fined for deviation from audit

Business Materials 26 December 2011 17:47 (UTC +04:00)

Azerbaijan, Baku, Dec. 26 / Trend R. Mamedov/

Audit organizations that are members of the Audit Chamber of Azerbaijan, as well as independent auditors are ready to provide financial statement audit of economic entities in accordance with international standards as of 2011, the Chamber's statement released on Monday in the official press says.

Under the amendments to the Code of Administrative Offences (Article 247 - 3) on Feb. 11, 2011, the deviation from the statutory audit, in cases stipulated by law, leads to fining public officers in the amount from 300 to 600 manat, legal entities - from 1,500 to 2,500 manat.

Under the legislation, the following bodies have to confirm their financial (accounting) reports by the auditor's conclusion: banks and other credit institutions, joint stock companies, insurance companies, investment funds, financial-industrial groups, limited liability companies, issuers of securities, non-budgetary funds (social relevant organizations, municipalities and municipal enterprises), holding companies, the subjects of natural monopoly activities.

In recent years, on average annually 3,000 audits based on the appeals of the economic entities themselves are conducted, the chairman of the Audit Chamber Vahid Novruzov said earlier.

This figure is much lower than required by law, Novruzov said.

According to Novruzov, the legislation in the field of audit in recent years is observed by 10 percent of economic entities.

The official exchange rate is 0,7863 AZN/USD.