International auditing standards applications: Comparison of Turkey and Azerbaijan

Enron, WorldCom and other scandals rocked the confidence of financial statement user significantly. Immediately after the emergence of scandals damaginig independent auditing, Sarbanes-Oxley, European Union regulations, regulations of the International Federation of Accountants and the regulations of American Certified Accountants Association were made in order to protect investors in Capital Market.International Federation of Accountants has published International Standards on Auditing in order to impove the quality and unique tidiness of accounting and auditing practices in the world.The study consisted of four parts. In the first section, general information about the audit provided, in the second section, International Standards on Auditing are investigated, and in the third section, Azerbaijan Auditing Standards in Azerbaijan Republic are examined. In the fourth section, inspection practices in two licensed companies, one national, the other international, both operating in Turkey and Azerbaijan are investigated. According to the findings obtained as a result of investigation, in addition to similarities between inspection practices in both countries, differences have also been identified.