The process of institutionalization in accounting: Developments in Turkey, suggestions for Azerbaijan

Institutionalization is an important concept describing the process of conceptualization of institutions operational logic, its foundation and formation stages. Considering the competitive and innovative approach, enterprises and particularly small enterprises can benefit from the system created concerning institutionalization in the right time. Accounting is one of the oldest management branches that has the most advanced information system. Conceptual framework, principles, registration rules, recording and reporting process that constitute the institutional structure of accounting are quite comprehensive. Regulations relating to attain proper legal status of accounting in Turkey were made in 1990s. Accounting profession in Turkey executed under titles such as independent accountant (financial advisor) and certified public accountant. Members of the profession, professional chambers and the professional association to which they belong: organized under the roof of TÜRMOB (Union of chambers of certified public accountants and sworn-in certified public accountants of Turkey). A study was conducted with 15 open-ended questions in order to reveal the status of the accounting profession in Azerbaijan.10 questions about accounting in the public and private sectors in Azerbaijan were raised and answered by four professionals. The accounting profession in Azerbaijan is executed under the titles of chief accountant and independent accountant (independent auditor). The professional organization has not yet been fully formed. Professional practices are carried out within the framework of National Financial Regulation. After Azerbaijan became an independent republic in 1991, the necessity to bring economic sphere, national finance and accounting policies into conformity with international standards increased. Many steps have been taken forward but still there are many works that need to be performed to reach international standards in the process of institutionalization in accounting sphere. For purpose educational institutions, training programs and curriculum should be established and developed in the field according to the international standards. Seminars and courses should organized for those related to the field. An expert group of people who knows IAS and IFRS and who have an education or training in this particular field should established. Researches in the field of accounting should conducted to eliminate problems related to methodological base and further contribute to the literature. Key Words: Azerbaijan, Accounting Profession, İnstitutionalization, İnternational Accounting Standards.