Otabek Barakayev,
PhD, Head of the Department of Audit Methodology and
External Quality Control of Audit Organizations of
the Ministry of Finance of the Republic of Uzbekistan,
Tashkent, Uzbekistan. Email: [email protected]
ORCID: 0000-0001-9624-4023
Abstract: This article lists a number of financial failures and crises that have occurred abroad in recent years, their causes, including the lack of management and problem-solving skills, and the lack of appropriate oversight measures. As a result of these financial failures and crises, investors’ confidence in financial statements and management reporting has declined significantly. Major financial crises like these have had a major impact on the reputation of the auditing profession, and the auditing profession has faced challenges due to the public’s understanding of the auditor’s responsibilities and independence. The reason for such problems was the involvement of large audit firms, which expressed an unmodified (unqualified) opinion in the audit report, confirming that the financial condition of the companies is free from fraud. Weaknesses in the audit committee and internal control systems in large companies have led to corporate failure, as these systems provide central monitoring in corporate governance mechanisms. Therefore, the role of audit in the corporate governance system is very important and central. Therefore, the importance and tasks of auditing in the corporate governance system, the formation of a modern corporate governance system and its theoretical foundations, a new definition of corporate governance control functions and auditing activities, the theoretical and legal basis of audit in corporate governance Substantiation of the importance of a modern corporate governance system was proposed by giving it an authoritative definition. Also, the interdependence of (external) audit, audit committee and internal audit, a number of financial failures and crises abroad in recent years, their causes, the need for audit in corporate governance, in particular, foreign experience and research of scientists links from their work.
Keywords: audit, auditing activities, corporate governance, audit function, internal audit, external audit, audit committee, financial reporting, audit report.