A B S T R A C T

The purpose of the research – the study aims to ensure fair competition within the audit services market, to evaluate the risks posed by forms of unfair competition (such as dumping, relationships affecting independence, artificial reduction of quality, etc.) on the reliability of financial statements and the quality of audits, and to identify directions for adapting foreign practices to the Azerbaijani context in order to mitigate these risks.

The methodology of the research – the study employs comparative analysis of the normative-legal framework and institutional mechanisms, examination of international auditing standards and quality control systems (ethical rules, quality assurance, professional oversight, etc.), synthesis of advanced country practices (integration of professional self-regulation and state supervision), and conceptual assessment of models applicable in Azerbaijan.

The practical importance of the research – the article presents practical measures to enhance audit quality, safeguard the reliability of financial statements, and foster a fair competitive environment in the market. It substantiates opportunities and directions for strengthening professional ethics and independence requirements, establishing quality control mechanisms, increasing transparency and accountability requirements, and preventing unfair price competition.

The results of the research – forms of unfair competition undermine trust in auditor–client relationships, jeopardize the adequacy of audit evidence, and threaten the reliability of audit results. International practice demonstrates that systematic professional oversight, quality assurance, transparency requirements, and consistent enforcement of ethical frameworks significantly reduce these risks. For Azerbaijan, an adapted package of measures contributes to fostering healthy competition and ensuring the continuous improvement of audit quality.

The originality and scientific novelty of the research – the study introduces a conceptual model for the Azerbaijani audit market that systematically applies international approaches to combating unfair competition, adapted to local conditions. It proposes a comprehensive approach integrating elements of professional ethics, quality control, and institutional oversight.

Keywords: unfair competition, audit services, audit quality, professional ethics, quality control, international practice, institutional mechanisms, transparency.

http://doi.org/10.59610/bbu3.2025.3.1