Azerbaijan, Israel strengthen coop with MoU in audit and accounting

Azerbaijan and Israel have signed a Memorandum of Understanding (MoU) on cooperation in the field of audit and accounting. The MoU was signed by the Chairman of the Chamber of Auditors of the Republic of Azerbaijan, Vahid Novruzov, and the Head of the Institute of Certified Public Accountants in Israel (ICPAI), Chen Schreiber, Azernews reports.

The MoU is expected to contribute to the expansion of cooperation between the two countries, successful partnerships, joint activity, and the development of the audit profession as a whole for auditors and accountants of both countries.

The audit profession is regulated by the Auditors’ Council and the Institute of Certified Public Accountants in Israel (ICPAI). The Auditors’ Council is a branch of the Israeli Ministry of Justice established under the Auditors Law 5715-1955. The Auditors’ Council’s functions are to conduct examinations leading to receipt of an Auditor’s License; supervise and control professional education and training and review; and respond to complaints regarding ethical and professional conduct.

ICPAI is a voluntary body of licensed Certified Public Accountants (CPAs), established in 1931, which sets auditing standards, develops ethical requirements for its members, promotes accountancy education and training, undertakes investigative and disciplinary procedures for its members, and advances the accountancy profession.

The Auditors Law and related Regulations cover matters concerning licensing, exams, and ongoing supervision of the profession in Israel. In accordance with this law, the achievement of an audit license may be undertaken through two different pathways: an academic (which 80% of candidates pursue) and a non-academic route.

The function of Investigation and Discipline (I&D) in Israel is addressed by both the Auditors’ Council and the ICPAI. The Auditors Council addresses all complaints concerning breaches of professional misconduct or breaches of ethical requirements as stated in the Auditors Law and Regulations. In addition to the investigation and disciplinary system of the Auditors’ Council, the ICPAI maintains its own Disciplinary Tribunal which has the authority to administer sanctions against members violating its rules.

The MoU between Azerbaijan and Israel is an important step in strengthening cooperation between the two countries in the field of audit and accounting. It is expected to lead to increased collaboration between the two countries and the development of the audit profession in both countries.