Compulsory professional liability insurance of the auditors are regulated by the Law of the Republic of Azerbaijan "On Compulsory Professional Liability Insurance of the Auditors" and defines the relations of physical and legal entities providing audit services in the territory of the Republic of Azerbaijan in the field of compulsory professional liability insurance to the subject of the audit, as well as its organizational, legal and economic bases.

The following are the insurance event cases that create the auditors professional liability:

violation of the requirements of normative legal acts, standards, rules adopted in the field of auditor service;

failure to detect distorted information and errors in financial and tax reports;

failure to provide correct recommendations for eliminating detected errors and distortions;

low-quality performance of works and (or) non-observance of the deadline;

violation of the principle of privacy.