| Azerbaijan: Integrity Scorecard Report > Sub-Category: Supreme Audit Institution | ||
| Indicators | Score | |
| 58 | In law, is there a national supreme audit institution, auditor general or equivalent agency covering the entire public sector? | 100 |
| 59 | Is the supreme audit institution effective? | 53 |
| 60 | Can citizens access reports of the supreme audit institution? | 75 |
Indicator and sub-Indicator Details
| 58 | In law, is there a national supreme audit institution, auditor general or equivalent agency covering the entire public sector? | |||||||
| 58: In law, is there a national supreme audit institution, auditor general or equivalent agency covering the entire public sector? | ||||||||
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Comments: The Chamber of Auditors is a specific agency that covers the entire public sector. The Law on Audit Service regulates its operation. References: Chamber of Auditors [ LINK ]; The Law on Audit Service [ LINK ]
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| 59 | Is the supreme audit institution effective? | |||||||
| 59a: In law, the supreme audit institution is protected from political interference. | ||||||||
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Comments: According to par. 1 of the Charter on the Chamber of Auditors, the Chamber is an independent financial institution. References: The Charter on the Chamber of Auditors [ LINK ]
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| 59b: In practice, the head of the audit agency is protected from removal without relevant justification. | ||||||||
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Comments: There is a contradiction in the legislation regarding this matter. According to Article 9 of the Law on Auditor Service, the director of the Chamber of Auditors is appointed under Article 109.32 of the Constitution, which means that the director is appointed by the president of Azerbaijan. However, under Article 9 of the Charter on Chamber of Auditors, the director of the Chamber is appointed by Parliament. According to the officer of the Chamber, the current director was appointed by Parliament and has served from 1996 up to now, which means that he has served an indefinite term. It should be noted that the legislation is silent about the director's removal and terms of office. In this regard, the director of the agency can be removed at the will of the political leadership. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) The Law on Auditor Service; The Charter on Chamber of Auditors [ LINK ] 4) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59c: In practice, the audit agency has a professional, full-time staff. | ||||||||
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Comments: The Chamber of Auditors has sufficient staff to fulfill its basic mandate. According to the 2007 Report of the Chamber, the agency has 67 employees. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59d: In practice, audit agency appointments support the independence of the agency. | ||||||||
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Comments: According to the officer of the Chamber of Auditors, the Chamber has a cooperation contract with the Azerbaijan State Economy University. Based on this contract, every year five-six graduates with honors are appointed to the Chamber of Auditors. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59e: In practice, the audit agency receives regular funding. | ||||||||
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Comments: According to the officer of the Chamber of Auditors, since the legislation defines it as an independent financial institution, the Chamber does not receive any funding from the budget. Under Article 19 of the Charter on the Chamber of Auditors, the Chamber's financial sources are generated from holding exams; issuing of licenses; membership dues by independent auditors and auditor organizations; service contract fees; incomes from publication of newspapers and journals regarding audit service, and other sources not prohibited by law. According to the 2007 Report of the Chamber, there was no problem with funding. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59f: In practice, the audit agency makes regular public reports. | ||||||||
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Comments: According to par. 26 of the Charter on Chamber of Auditors, the agency submits reports to the tax and statistics authorities regarding its operation. Besides, the Chamber's reports are posted on its website, [ LINK ] and published in the journal "Economy and Audit." It should be noted that only the 2007 report of the Chamber of Accounts is currently available online. According the officer of the Chamber, every year the Chamber of Accounts submits its annual report to the Presidential Apparatus and it also publishes it. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59g: In practice, the government acts on the findings of the audit agency. | ||||||||
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Comments: Despite the formal independence, in fact the Chamber of Auditors is dependent of the political leadership. As a result, audit reports are often given superficial attention and they do not lead to policy changes. According to the officer, the Chamber submits its yearly report to the Presidential Apparatus and that is all. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 59h: In practice, the audit agency is able to initiate its own investigations. | ||||||||
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Comments: Under Article 15 of the Law on Auditors Service, in case of violations of audit rules by auditors or audit organizations, the Chamber of Auditors can annul the audit license. According to the officer of the Chamber, in this case the Chamber sends a notification letter to the tax authorities and Social Protection Fund. It should be noted that despite the formal independence, in fact the Chamber of Auditors is highly dependent of the will of political leadership. Generally, the Chamber must rely on approval from the executive before initiating investigations. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 60 | Can citizens access reports of the supreme audit institution? | |||||||
| 60a: In law, citizens can access reports of the audit agency. | ||||||||
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Comments: The Law on Audit Service is silent about the accessibility of its reports. However, citizens can request them under the freedom of information laws. Besides, in practice, they are posted on the website of the Chamber of Accounts, [ LINK ] and/or published in the official journal "Economy and Audit." References: The Law of the Republic of Azerbaijan on Audit Service [ LINK ]
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| 60b: In practice, citizens can access audit reports within a reasonable time period. | ||||||||
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Comments: The Chamber of Auditor's reports are posted on its website [ LINK ] free of charge and also published in the journal, "Economy and Audit." It should be noted that only the 2007 Report of the Chamber of Accounts is currently available online. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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| 60c: In practice, citizens can access the audit reports at a reasonable cost. | ||||||||
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Comments: The Chamber of Auditor's reports are posted on its website, [ LINK ] and also published in the journal, "Economy and Audit." It should be noted that only the 2007 Report of the Chamber of Accounts is currently available online. It is free of charge. References: 1) Reports by the Chamber of Auditors [ LINK ] 2) Interview with an officer of the Chamber of Auditors, September 2009 3) Newspaper materials and articles of the Radio Liberty-Azerbaijan [ LINK ]
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