IMPROVING INTERNAL CONTROL SYSTEM

: The Internal Audit Service is not just a global trend, but an urgent need in the conditions of actively developing and increasingly complicated economic relations. The purpose of this article is to identify the main problems of internal audit in Uzbekistan. It is argued that the concept of internal audit correctness provides conceptual tools for studying internal audit as a disciplinary mechanism in the conditions of corporate governance of modern organizations. The article develops the initial conceptual formulation and internal audit, audit and control to improve the rationality of economic activity and related control measures


Mexmonaliyev Ulug'bek Erkinjon o'g'li
Farg'ona Politexnika Instituti "Buxgalteriya hisobi va audit" kafedrasi tayanch doktaranti Abstract: The Internal Audit Service is not just a global trend, but an urgent need in the conditions of actively developing and increasingly complicated economic relations.The purpose of this article is to identify the main problems of internal audit in Uzbekistan.It is argued that the concept of internal audit correctness provides conceptual tools for studying internal audit as a disciplinary mechanism in the conditions of corporate governance of modern organizations.The article develops the initial conceptual formulation and internal audit, audit and control to improve the rationality of economic activity and related control measures.

I N T R O D U C T I O N
In the conditions of economic modernization, the main tool for obtaining reliable information about the financial condition of economic entities is internal audit.There are important changes in the modern economy, one of which represents the consolidation of previously unequal enterprises in the corporation -large business entities, the integration of joint-stock companies and legal entities with different organizational and legal forms.Consolidation is carried out together with the transfer of operational management functions from shareholders to hired top managers in order to attract cheap financial resources, and the entry of Uzbek corporations into the world stock exchanges.
Decision PQ-4611 of February 24, 2020 of the President of the Republic of Uzbekistan "On additional measures for the transition to international standards of financial reporting" opened a new page in accounting policy in our country.
These processes cause important changes in the organization of internal control over the activities of Uzbek corporations and put forward other requirements for disclosure of information about financial and economic activities.In accordance with the decision No. 215 of October 16, 2006 on measures to ensure effective management and accounting of state property at the necessary level, the balance sheet value of its assets is 1 billion. 1 According to the "Regulation on Internal Audit Service in Enterprises", the number of employees of the internal audit service should be sufficient to effectively achieve the goals of the internal audit and solve its tasks.That is, the state of the internal audit service should have the following: The internal audit service is headed by its head, who has the appropriate auditor's certificate. 2

S C I E N T I F I C R E S E A R C H M E T H O D S
The main task of the internal audit system of enterprises is to find ways to increase production and reduce costs.The internal auditor should also give advice on increasing the labor productivity and efficiency of the enterprise.Investigating the corruption of the economic system is a labor-intensive audit.In this, the main directions of financial and economic development of the enterprise are studied.Internal auditor can approve or disapprove this or that direction of development in the enterprise.The purpose of the internal audit is to control the compliance of the company's employees with legal documents, regulatory documents and standards of professional activity, to eliminate conflicts between the interests of the parties, to ensure reliability in accordance with the characteristics and scope of the operations carried out by the company, as well as to reduce risks in the company's activities.consists of "Regulation on Internal Audit Service in Enterprises" was adopted in order to define the single requirements for the organization of internal audit in enterprises with a turnover of more than soums, as well as the methodological basis for the organization of its work.Currently, this Regulation is a regulatory document that specifies the procedure for organizing internal audits in economic entities.

M I C R O C O N T R O L S Y S T E M 3
According to the "Regulation on Internal Audit Service in Enterprises", the number of employees of the internal audit service should be sufficient to effectively achieve the goals of the internal audit and solve its tasks.That is, the state of the internal audit service should have the following: ■ The internal audit service is headed by its head, who has the appropriate auditor's certificate.
■ Every year, the head of the internal audit service prepares an annual estimate of the costs of the internal audit service and submits it to the supervisory board of the economic entity for approval.
■ The professional level of internal audit service personnel should be maintained through regular training at licensed educational institutions.
■ Employees of the internal audit service must be annually certified by the supervisory board of the economic entity.

D I S C U S S I O N S A N D C O N C L U S I O N
In the professional standard of international internal auditors, internal audit is defined as follows, -"internal audit is an independent and impartial advisory activity related to the development and implementation of specific measures aimed at increasing the efficiency of the financial and economic activities of the enterprise." Control of financial resources in enterprises is carried out by the following, that is, a special department carrying out this activity, management staff and specialists, accounting staff headed by the chief accountant.The existence of this type of control subjects in enterprises leads to several problems.
Firstly, the large number of control structures leads to the return of some duties between them, for this reason it is necessary to coordinate their activities;

YA S H I
Secondly, it is necessary to ensure the independence of internal control departments, clearly define their functions and determine the flow of information in internal documents.
In order to solve these problems, internal audit functions in enterprises should be distributed at the above organizational levels.The distribution of functions should be based on the following principles: 1. Certain issues at the management level should be reviewed by highly qualified auditors, as well as the rotation of auditors in different departments; 2. Solving issues that do not require the participation of auditors at a high organizational level through the timely use of a well-established flow of information; 3. It is necessary to use the services of highly qualified auditors during the inspection of large departments.Organization of internal audit service in enterprises faces two problems, that is, in relation to establishing control over branch managers and executive departments; regarding the organization of the management system of subsidiaries and their control.
In our opinion, we should include the following in the main functions of internal audit in enterprises: The effectiveness of the work of the internal audit service department is evaluated depending on the extent to which it has fulfilled its goals, tasks and functions.
As a result of practical application of the above-mentioned principles, the formation of financial resources in enterprises, their use, gives an opportunity to evaluate the correct organization of the account and to analyze the capital structure.
The internal audit department may not always be able to obtain correct and accurate information about the business entity and, as a result, may give incorrect conclusions and recommendations, because the financial statements of holding companies for a certain period may not contain sufficient information.
The internal audit service analyzes the report of the economic entity, determines the direction of future development and helps the management to make decisions.In general, the results of internal audit have a great impact on the improvement of management within the business entity.
For the formation of internal audit in our republic, it is necessary to improve the legal framework and achieve the maturity of regulatory and legal documents and their implementation.
In our opinion, automation (computerization) of internal audit increases the efficiency of audit work, and on the other hand, it allows to create a control-advisory system.We think that in the process of automation (computerization) of internal audit, special attention should be paid to the following elements: ■ Economic-mathematical, economic-organizational and informational models reflecting the audit process; ■ To technical, software, information and other tools implementing the models.
In our opinion, in order to successfully implement the function of internal audit in managing the activities of economic entities, it is necessary to develop and adopt "Ethical standards of internal auditors", standards for conducting internal audits in Uzbekistan, as well as internal audit as a form of activity.should be enshrined in law.
The experience of involving internal audit working documents, as well as the experience of involving internal auditors themselves to provide direct support to external audit, creates the need to determine the criteria of internal audit assessment.In our opinion, such criteria should be in the ethical rules of internal auditing and professional (professional) standards.Compliance with them guarantees the high quality of internal audit.
LY S I S Internal audit of business entities operating in the Republic of Uzbekistan is organized based on laws and regulatory documents.Decision No. PQ-475 dated September 27, 2006 of the President of the Republic of Uzbekistan "On Measures for the Further Development of the Securities Market" and the Decree of the Cabinet of Ministers of the Republic of Uzbekistan "On the Measures for the Further Development of the Stock Market"

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Control function: a. Carrying out the study of financial resources, evaluation and monitoring of the effectiveness of the internal control system; b.Compliance with legislation; c. that the rules of the procedure for drawing up and maintaining the financial report are being followed; d.Tax accounting and reporting based on established standards; e. Assessment of the correct adoption of decisions on the formation, use, and movement of resources at the scale of the holding; f.Liaising with external auditors.■ Analytical information function: a. providing information to the monitoring board about the level of resource utilization of enterprises; b.Examination of management decisions made on financial resources; 4 The drawing was made independently by the author.T A R A Q Q I Y O T П Р О Г Р Е С С P R O G R E S S 290 https://yashil-iqtisodiyot-taraqqiyot.uzYA S H I L I Q T I S O D I Y O T VA TA R A Q Q I Y O T 2024-yil, yanvar.№ 1-son.c. Analysis of internal funds flow and their sources; d.Participation in the development and analysis of estimates and business plans.Tip function: a. Effective accounting methods b.Participation in the development (analysis) of methodologies for calculating taxes and fees; c.Development of ways to improve the management information system; d.Providing advice to departments on issues related to the authority of internal audit.