A Webinar on “The Most Frequently Non-Complied-With Professional Standards” Was Held.
On 22 April 2026, a webinar on “The Most Frequently Non-Complied-With Professional Standards” was held at the Chamber of Auditors of the Republic of Azerbaijan.
The webinar was moderated by Goshgar Ahmadov, Head of the Department of Audit Transformation, Operational Regulation and Quality Management, while Shahkhal Karimov, Member of the Chamber of Auditors and independent auditor, delivered the presentation.
The main purpose of the webinar was to analyze the International Standards on Auditing that are most frequently violated or improperly applied in audit practice, draw auditors’ attention to existing problems in this area, and contribute to improving audit quality.
Within the framework of the webinar, extensive discussions were held, in particular, on the following auditing standards:
ISA 230 – Audit Documentation
It was noted that an audit is not limited to the performance of procedures; at the same time, the proper and systematic documentation of these procedures, the audit evidence obtained and the professional judgments made is an integral part of audit quality. Particular emphasis was placed on the requirement that documentation should meet the “experienced auditor test”, meaning that another experienced auditor should be able to understand the nature and results of the work performed on the basis of the documentation. At the same time, serious deficiencies were noted in practice, such as the formal compilation of documentation without sufficient substantiation of the results.
ISA 315 – Identifying and Assessing the Risks of Material Misstatement
It was emphasized that an audit is not the performance of random procedures, but a systematic process based on a risk-based approach. The auditor must obtain a thorough understanding of the audited entity and its environment, and identify and assess risks in a specific and well-substantiated manner. It was reported that such problems as formal documentation of risks, the use of general statements instead of specific risks, as well as inadequate assessment of the internal control system are widespread in practice.
ISA 500 – Audit Evidence
The concepts of “sufficiency” and “appropriateness” of audit evidence were explained, with particular emphasis placed on the relationship between the quality and quantity of evidence. It was noted that the mere existence of a document is not sufficient for it to automatically be considered audit evidence. The auditor must critically evaluate the evidence obtained and substantiate the conclusions logically. Attention was drawn to such deficiencies as reliance on a single source, excessive reliance on inquiries, as well as acceptance of information obtained from information technology systems without adequate verification.
ISA 505 – External Confirmations
It was noted that confirmations obtained from external sources are considered one of the most reliable forms of audit evidence. In this regard, it is essential for the auditor to maintain direct and full control over the confirmation process. However, it was emphasized that serious deficiencies exist in practice, such as delegating this process to the management of the audited entity, relying on electronic confirmations without sufficient verification, and failing to apply alternative audit procedures when no response is received.
ISA 705 – Modifications to the Opinion in the Independent Auditor’s Report
Cases involving modifications to the auditor’s opinion were also analyzed during the webinar. It was stated that when material misstatements or limitations in obtaining audit evidence exist, the auditor should issue a qualified opinion, adverse opinion or disclaimer of opinion, as appropriate. Nevertheless, it was noted that serious professional violations exist in practice, such as some auditors avoiding modification of the opinion due to client pressure, as well as forming an opinion without sufficient and appropriate audit evidence.
Finally, as a result of the discussions held within the framework of the webinar, the following key points were emphasized:
- Audit documentation should not be formal in nature; it should reflect the auditor’s professional judgments and thought process;
- Risks should be identified and assessed in a specific, measurable and well-substantiated manner;
- Audit evidence should be obtained from diverse and reliable sources, and its quality and sufficiency should be assessed comprehensively;
- The process of obtaining external confirmations should be carried out entirely under the auditor’s control;
- The auditor’s opinion should be prepared objectively, independently and in accordance with the requirements of international auditing standards.
It was noted that the proper application of international auditing standards is of significant importance for improving audit quality.
Chamber of Auditors of the Republic of Azerbaijan
