In the selection of an independent auditor TuranBank based on rules of the Central Bank of Azerbaijan Republic "Demands to carry out an external audit in banks and local branches of foreign banks."  The Bank is free to choose an independent auditor. During a selection of an independent auditor

Date of update: 15.01.2024

The Audit Committee shall receive from potential auditor the following information:

• Special permit (license) for audit services;
• Previous activities of the auditor;
• Names of other auditors and experts (if any) involved in the audit of the Bank, information on their education and work experience;
• Declaration confirming the independence of the auditor;
• Any other business information the Audit Committee considers important to select the auditor.
  
  

Criteria for selecting an external auditor:

• Knowledge in IFRS and experience in audits of banks and other financial institutions selected auditor;
• It must be a well-known international auditing company and should have a "best practice" in the audit;
• The proposed budget must be adequate for the period and scope of the audit;

During the selection of the external auditor the bank receive offers from many organizations. After analysis of the proposals, the best offer is selected in accordance with criteria established by the Bank.  The bank basically prefers influential international auditing firms ("Big Four"). A contract is signed with the selected company to carry out an audit and Central Bank is informed about it prior to November 15 of the same year which the audit will cover.

In addition to the contract signed by the auditor and the bank, "the letter of responsibility" prepared on the basis of international auditing standards should be sent to the bank and thus the bank must confirm receipt of the letter. In the case that the Bank terminates the contract with the auditor before the expiry date it should within five (5) business days to notify the Central Bank about it. The note must state the reasons for termination.

Audit report prepared by the external auditor after the completion of the audit in accordance with the requirements of relevant legislation should be submitted to the Bank.

Copies of the financial statements, together with copies of "Audit Report" and "Management Report" must be submitted to the Bank within 5 (five) months after the end of the financial year, and "Audit Report " not later than 3 (three ) working days from the date of signing.