BAKU, Azerbaijan, Nov.2
By Zeyni Jafarov - Trend:
Most of the economic entities in Azerbaijan aren't responsible enough in the conduct of the audit procedure, despite the documents of the normative legal nature of Azerbaijan ‘On the audit service’ and ‘On accounting’, Director of ‘A Audit and Consulting’ company Rufat Aliyev told Trend.
According to Aliyev, sanctions for evading a statutory audit were introduced back in 2011, no authority has been established to draw up the protocol on the administrative offense. In May 2017, after completing the determination of the procedure for the application of administrative fines to violators of the law, in relation to banks, insurance companies, joint-stock companies, the protocols are drawn up by the Chamber for Supervision of Financial Markets, and in relation to other commercial and non-commercial organizations - by the Chamber of Auditors.
The director noted that according to the Code of Administrative Offenses if the protocols drawn up against legal entities that have not passed the mandatory audit of financial statements are confirmed in court, they will be fined from 1,500 manat ($882.3) to 2,500 manat ($1,470).
He stressed that one of the main problems of entrepreneurs is that, as they think, payment of a fine exempts them from the mandatory audits.
“In fact, such thinking is wrong, since after paying the fine, economic entities are required to audit financial statements for evading a statutory audit. This, in turn, is twice as expensive and is not desirable for any entrepreneur,” he also noted.
"Despite the steps taken in this area, the development of audit services in the country is not fully developed at the proper level, and the reason for this is the indifference of entrepreneurs to the audit process," concluded Aliyev.
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