Minister of Finance of the Republic of Azerbaijan Samir Sharifov made a business visit to the Islamic Republic of Pakistan, the United Arab Emirates (UAE) and India on February 19-21***As of January 1st, 2018, the external public debt of the Republic of Azerbaijan constituted 9,398.3 million US dollars (equivalent 15,978.1 million manat). The Debt to the Gross Domestic Product ratio stands at 22.8 percent (based on 2017 GDP of AZN 70,135.1 mln)******

Information of the Ministry of Finance of the Republic of Azerbaijan<br>to the attention of commercial organizations and public legal entities!

Information of the Ministry of Finance of the Republic of Azerbaijan
to the attention of commercial organizations and public legal entities!

28.01.2018

 Audit inspection can be mandatory or voluntary (at the initiative of the business entity) in accordance with the article 2 of the Law “On audit service” of the Republic of Azerbaijan. According to the law, audit is mandatory for business entities bound to publish their financial statements in the cases specified by the law, whereas it is voluntary in cases other than those specified by the law.
According to the provision 91.4 of the Civil Code of the Republic of Azerbaijan, a limited liability company shall involve an independent (external) auditor to verify the accuracy of annual financial statements every year.
The provision 107.6 of the Civil Code bind a limited liability company to involve an external auditor to verify the accuracy of annual financial statements.
According to the provision 12.3 of the Law “On accounting” of the Republic of Azerbaijan, entities of public importance, commercial organizations bound to develop consolidated financial statements, as well as commercial organizations that receive loans at state guarantee or participate in projects on the spending of public debt and those provided subsidies, subventions, grants or state budget funds for fulfillment of certain powers are required to publish annual and consolidated financial statements on its website (if available) and in the media alongside with the audit opinion.
According to the provision 12-1.9 of the Law “On accounting” of the Republic of Azerbaijan, public legal entities established by the relevant executive authority, which is bound to develop consolidated financial statements and required to publish financial statements as per the charter, shall publish annual financial statements and consolidated financial statements on their websites and in the media together with the audit opinion.
The article 464 of the Code of Administrative Offences of the Republic of Azerbaijan imposes state officials a financial penalty of three to six hundred manat and legal entities one thousand and five hundred to two thousand and five hundred manat for evading mandatory audit to be realized in the cases specified by the Law “On audit service” of the Republic of Azerbaijan.