Azerbaijan, Baku, April 13 / Trend A. Hasanov /
Azerbaijan plans to adopt a new law on "Auditing". It will clearly define the auditors' compliance with the standards, adviser to the head of Azerbaijan Chamber of Auditors Najaf Talibov told Trend on Friday.
"While preparing the proposals for improving the legislative base in the audit, there were so many proposals that the Cabinet of Ministers recommended to submit the project as a new law," Talibov said.
He said that the new law on "Auditing" will not have the amount of a fine for failure to comply with the standards. The administrative and disciplinary methods, such as a reprimand, warning, suspension of activity, revocation of licenses and so on will be reflected there.
"All these measures are fully consistent with the international standards and the standards of the International Federation of Accountants," Talibov said.
Regarding the use of penalties, this issue was reflected in the Code of Administrative Offences in 2011. Penalties may be applied to economic entities for failure to pass the audit.
The international auditing standards have been introduced in Azerbaijan since Jan. 1, 2010. The transition to international accounting standards began in 2008.
"Azerbaijan's transition to the international audit standards has provided us with many convenient tools to verify auditors for compliance with standards that improve the quality of rendered auditing services," he added.
The Audit Chamber has started checking the quality of audits this year. The new quality control system has been developed on the basis of EU directives and standards of the International Federation of Accountants.
At present, about 95 auditors operate, including 41 independent auditors. There are such well-known auditing companies in the world as PricewaterhouseCoopers, Deloitte, Ernst & Young, KPMG, BDO Azerbaijan and others in Azerbaijan.