Azerbaijan, Baku, July 5 / Trend E. Aliyev /
The World Bank (WB) has sent a mission to Azerbaijan to review accountability project in state and corporate sector (CAP/SAP) of Azerbaijan, WB Baku Representative Office told Trend on Thursday.
"For a review of the project's realization a mission of the World Bank is in Baku from July 2," the representative office said.
According to the representative office the mission will stay in the country till July 12.
Several tender procedures, including attraction of consultants to support the Accounts Chamber in realization of its Strategic Development Plan till 2015 have been carried out under the project.
The subject of the tender is an 18-month contract for services on support of the implementation of performance audit, risk management, financial audits, improving the legal base and regulatory frameworks of the Chamber, development of human resources and practical training.
Also, a tender for the supply of equipment and software for the system and the form of financial and accounting reporting for budgetary institutions (FARABI) was carried out. The contract will be meant for six months.
In addition, the World Bank has attracted a consultant for a period of six months for the creation of the Association of Professional Accountants of Azerbaijan.
The Association should be established in a non-governmental and non-profit organization form.
The total cost of the CAP/SAP project is $24 million. The credit agreement for the project was signed in September 2008, and entered into force on December 19, 2008.
The project is financed by World Bank's credit in the amount of $11 million, grants of the Japanese PHRD Foundation ($3 million), the Swiss State Secretariat for Economic Affairs SECO ($2 million), and the share of Azerbaijani government ($8 million).
The project is the last stage of reforms in the accounting system in Azerbaijan which was launched in 2003. The first stage of the reform - improving the legal framework in the field of accounting is being finished. The second stage of the reform includes bringing the standards up to the entrepreneurs and implementing them for commercial and non-commercial enterprises. The project's realization will allow creating a Centre for Accounting and Auditing at the Ministry of Finance of Azerbaijan, which will train accountants and auditors of non-banking institutions.
The goal of the project is to increase the transparency of financial accountability system in the public and corporate sectors.
The improvement of the functions of audit sphere regulation as well as strengthening the organizational structure of the Chamber of Auditors of Azerbaijan is provided under the component on corporate sector. Overall, the project provides the improvement of the system of external audit, creation of program of certification of accountants and auditors and carrying out trainings.
Azerbaijan has already prepared 28 national standards for commercial sector. There are 35 standards of financial accountability and auditing in the world. The transition to International Financial Reporting Standards in the country was initiated for the public sector in January 2008.