Optional statutory audit

That's already started the third year, as the government can not decide on the application of the mechanism to identify deviation from the mandatory independent audits of commercial organizations. Meanwhile, the level facing the audience is reduced.

In February 2011, Parliament defined the measure of administrative penalties for similar offenses against officers (from 300 to 600 manat) and legal persons (from 1500 to 2500 manat). The Head of State in April of that year, instructed the Cabinet of Ministers within two months submit a proposal for the authority, which will deal with the imposition of these sanctions. But the Cabinet while asleep.

Proposals to account resolution of this protracted issue was prepared and presented to the government by experts of The Chamber of Auditors (COA) of the Azerbaijan Republic. The COA proposes to determine the administrative liability for failure to independent audit of the city (district) courts to provide the Court of Auditors. The Ministry of Taxes with COA at the end of each year is to make a list of organizations subject to the passage of an independent audit. At the next stage, the Chamber will identify commercial organizations that declined to an independent audit.

Slow government's approach to the issue of statutory audits of commercial organizations has led to the fact that the level of the passage of the independent audit in Azerbaijan dropped. Only in 2011, appealed to the independent auditors 34 65 subjects, which is 1.8% less than in 2010, they told Turan in the COA.

According to the decree of the Cabinet of Ministers for the number 97 of 27 May 2010 "On the provision and publication of the annual accounts and the consolidated annual financial statements of commercial organizations' annual financial reports shall be submitted for approval by the founders of April 30. Organizations that prepare consolidated financial statements have to approve them before June 30. However, these same organizations have to publish in print the annual financial statements in support of the audit report. And if there is nobody to fine, the company without any fear avoids independent audit and publication of financial statements.

Notably, many companies that do not prepare consolidated financial statements, there was a general meeting of shareholders (founders) in the second, third or even the fourth quarter, although the law is limited to the dates of approval of the annual accounts of clear date - April 30. As a rule, the State Securities Committee, which controls the activities of issuers and the Ministry of Finance, which controls the enforcement of the provision and publication of annual financial statements, do not notice this "omission".

Recall that the passage of an independent audit to be banks and insurance companies, joint stock companies and limited liability companies, holding companies and financial-industrial groups, natural monopolies, foundations, non-governmental organizations, municipalities and other structures.

The Code of Administrative Offences, "Responsibility for avoiding an independent audit" entered into force on 13 April 2011. But so far none of those violating the requirement of the law has ever been subject to administrative proceedings. - 08B-