Association of Professional Financial Managers

APFM’s membership is primarily comprised of professional accountants in business and, as such, it does not have direct responsibility for the statutory quality assurance (QA) review system for audits, which is administered by the Chamber of Auditors of the Azerbaijan Republic (CAAR).

Notwithstanding the absence of direct responsibility, APFM supports the quality of financial reporting through ongoing member-focused activities, including the provision of technical guidance, training, and professional development initiatives. These activities contribute to strengthening professional competence and promoting high-quality financial reporting practices among its members.

APFM maintains established processes to support its members and continues to collaborate with relevant stakeholders to enhance awareness of developments in professional standards.

Current Status: Sustain

Initial professional development (IPD) and continuing professional development (CPD) requirements for obtaining and maintaining the Professional Accountant qualification are established under the Law on Accounting of 2018 and implemented by the Ministry of Finance, the State Examination Center, and accredited professional accountancy organizations, including APFM.

APFM supports the implementation of these requirements through its engagement with the State Examination Center and universities, including participation in the review of syllabi, examination content, and training programs. APFM also maintains continuing professional development requirements for its members and monitors compliance.

APFM continues to deliver professional development activities aimed at strengthening technical competencies, including financial reporting and practical skills, and collaborates with academic institutions to support the development of future professionals.

While these processes are established and operational, further alignment with the International Education Standards in effect at the time of the assessment has not been fully demonstrated.

APFM is encouraged to continue reviewing and enhancing its education and training activities against the latest International Education Standards, including competency-based approaches and emerging areas such as professional skepticism and digital skills.

Current Status: Execute

Responsibility for the adoption and implementation of auditing standards in Azerbaijan rests with the Chamber of Auditors of the Azerbaijan Republic (CAAR). APFM’s membership is primarily comprised of professional accountants in business, and its members do not conduct statutory audits. Accordingly, APFM does not have direct responsibility for the adoption or implementation of International Standards on Auditing (ISA).

Notwithstanding the absence of direct responsibility, APFM supports awareness and understanding of developments in auditing and assurance through member-focused activities, including seminars and professional events.

APFM maintains ongoing processes to monitor developments in international standards and to promote awareness among its members, as appropriate.

Current Status: Sustain

APFM reports ongoing efforts to promote ethical behavior and professional conduct among its members through training programs, guidance materials, and dedicated governance structures, including its Professional Membership and Ethics Committee. The institute organizes continuing professional development activities focused on ethics and disseminates information on independence and professional conduct requirements.

APFM also reports cooperation with the Chamber of Auditors of the Azerbaijan Republic on ethics-related matters, including sharing materials and supporting awareness of ethical requirements applicable to professional accountants in business.

APFM is in the process of further aligning its ethical requirements, training activities, and member communications with the latest International Code of Ethics for Professional Accountants.

APFM is encouraged to continue strengthening alignment with the latest IESBA Code, including consideration of formal adoption of the provisions applicable to professional accountants in business.

Current Status: Execute

Responsibility for the adoption and implementation of International Public Sector Accounting Standards (IPSAS) in Azerbaijan rests with the Ministry of Finance. APFM does not have direct responsibility for the adoption or implementation of IPSAS.

Notwithstanding the absence of direct responsibility, APFM supports awareness and understanding of public sector accounting requirements through training activities and professional development initiatives.

APFM maintains ongoing processes to monitor developments in public sector accounting and to update its training offerings, as appropriate.

Current Status: Sustain

Following amendments to the Law on Accounting, APFM has established investigative and disciplinary (I&D) procedures applicable to its members and reports ongoing efforts to raise awareness of the framework and the consequences of professional misconduct.

APFM continues to review and refine its I&D system as it gains experience operating within the revised regulatory environment, including assessing governance arrangements and procedural safeguards related to independence and transparency.

APFM is encouraged to continue strengthening alignment of its I&D system with SMO 6 requirements and international best practices, particularly with respect to independence, transparency, and public interest considerations.

Current Status: Execute

Responsibility for the adoption and implementation of International Financial Reporting Standards (IFRS) in Azerbaijan rests with the Ministry of Finance. APFM does not have direct responsibility for the adoption or implementation of IFRS.

Notwithstanding the absence of direct responsibility, APFM supports the application of IFRS through member-focused activities, including training programs, collaboration with academic institutions, and engagement with relevant stakeholders on financial reporting developments.

APFM maintains ongoing processes to monitor developments in IFRS and to promote awareness among its members, as appropriate.

Current Status: Sustain