DEVELOPMENT OF THE AUDITING SYSTEM IN AZERBAIJAN: GLOBAL EXPERIENCE, LEGAL FRAMEWORK, CHALLENGES, AND PROSPECTS

Abstract

This article examines the development of the auditing system in Azerbaijan, its legal and institutional foundations, global audit experience, and the main challenges currently facing this field. Within the scope of the study, the historical evolution of auditing in international practice is reviewed, with particular attention given to the experience of the United States and European countries. At the same time, the formation of the auditing system in Azerbaijan, the establishment of its legislative framework, and the role of the Chamber of Auditors in regulating audit activity are analyzed. The study also evaluates the importance of auditing in increasing transparency, strengthening accountability, ensuring compliance with tax legislation, and protecting the integrity of accounting and financial reporting. In addition, statistical indicators related to economic crimes, public finance, and audit activity are generalized in order to assess the effectiveness of the audit system in Azerbaijan. The findings show that although important steps have been taken to develop the audit institution, significant problems still remain in terms of audit coverage, practical effectiveness, transparency, and institutional independence. The article concludes that the modernization of audit mechanisms, improvement of legal regulation, expansion of audit services, and adaptation of auditing principles to new economic challenges are essential for strengthening the role of auditing in Azerbaijan’s national economic development.