Sumqayıt ş., Sumqayıt Biznes Mərkəzi 708 otaq.

Audit of financial statements

Auditing of financial operations of companies in Azerbaijan

Auditing of financial operations of companies in Azerbaijan is the process of an independent auditor checking the companys financial operations, its accounting and financial statements to determine their reliability and compliance with legal requirements. This process also includes checking the internal control and management system, as well as identifying possible risks related to the companys financial operations.

In accordance with the legislation of Azerbaijan, the following organizations must undergo a mandatory audit:

1. Joint-stock companies and limited liability companies whose funds are managed by other persons, except for the founders and their close relatives.
2. Organizations with an annual total income of more than 3 million manats (about 1.8 million US dollars).
3. Organizations with more than 50 employees.
4. Financial services, insurance, gambling, etc. organizations engaged in licensed activities such as
5. Organizations with state or municipal ownership.
6. Organizations attracting credit and investment from abroad.
7. Organizations that have contracts with state bodies to which budget funds are allocated.
8. Organizations that attract funds from the population and investment funds.
9. Roads, airports, bridges, etc. organizations involved in large infrastructure projects such as

Within the framework of the audit conducted in Azerbaijan, various aspects of the organizations activity are checked. Key areas of verification include:

1. Financial statements: An auditor verifies the accuracy and reliability of an organizations financial statements, including accounting, income and expense statements, balance sheets, and cash flow statements.
2. Tax obligations: the auditor verifies the correctness of the calculation and payment of taxes and payments in accordance with the law.
3. Internal control: The auditor assesses the effectiveness of the organizations internal control system, including accounting and reporting systems, financial control and risk management.
4. Compliance with the law: the auditor checks the compliance of the organizations activities with the law and normative legal acts.
5. Assets and liabilities: the auditor verifies the existence and correctness of the accounting of assets and liabilities of the organization.
6. Project management: the auditor verifies the effectiveness of project management and the implementation of plans.
7. Personnel: the auditor verifies the organizations compliance with labor legislation, availability and correctness of personnel and salary records.
8. Other areas: the auditor may check other aspects of the organization depending on the clients needs and requirements.

Based on the results of the audit, the auditor prepares a report, which provides recommendations for assessing the accuracy and reliability of financial statements, identifying deficiencies and problems, and improving financial management and control.