Volume 04 Issue 06-2024
22
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
22-25
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Improving internal audit processes plays a crucial role in shaping socio-economic landscapes in various sectors. This
improvement has significant implications for financial integrity, fraud prevention, compliance, governance,
operational efficiency, risk management, investor confidence, job creation, public trust, innovation, growth and global
competitiveness. By ensuring clarity, transparency and ethical practices, improved internal audits contribute to a
sustainable and prosperous economy, while building trust among stakeholders and attracting investment.
KEYWORDS
Fraud, risk, corporate crime, cyber security, investor.
INTRODUCTION
In the ever-evolving landscape of business and
governance, the importance of internal audit
processes cannot be overstated. The socio-economic
fabric of our societies relies heavily on the
effectiveness of these audits, as they help ensure
financial integrity, prevent fraud, promote compliance
and governance, improve operational efficiency,
manage risk, improve investor confidence, create jobs
is of great importance in creating, increasing public
confidence, developing innovations and strengthening
Research Article
SOCIO-ECONOMIC SIGNIFICANCE OF INTERNAL AUDIT IMPROVEMENT
IN THE REPUBLIC
Submission Date:
June 01, 2024,
Accepted Date:
June 06, 2024,
Published Date:
June 11, 2024
Crossref doi:
https://doi.org/10.37547/ijmef/Volume04Issue06-03
Zokirjonova Sarvinoz Shokirjon qizi
"Tashkent Institute of Irrigation and Agricultural Mechanization Engineers" National Research University, 3rd
stage "Accounting and auditing" direction, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 04 Issue 06-2024
23
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
22-25
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
global competitiveness. This paper examines the
multifaceted socio-economic significance of improving
internal audit practices across industries and its
broader implications for economic stability and
growth.
MAIN PART
In the complex structure of modern business and
management, the role of internal audit is to act as a
watchdog to protect against financial errors,
operational inefficiencies and ethical violations. The
socio-economic importance of strengthening internal
audit processes cannot be overstated as it affects
financial integrity, fraud prevention, compliance,
governance, operational efficiency, risk management,
investor confidence, job creation, public trust,
innovation, o has a direct impact on growth and global
competitiveness. First, improving internal audit
processes is important in ensuring financial integrity in
organizations.
Accurate and transparent financial reporting is not only
a legal requirement, but also the basis of investor
confidence and market stability. By conducting
thorough audits and implementing rigorous controls,
companies can demonstrate their commitment to
sound
financial
practices,
thereby
attracting
investment and stimulating economic growth. In
addition, the socio-economic impact of improved
internal auditing is focused on fraud prevention. With
the prevalence of financial crimes and corporate
misconduct, internal auditing serves as a critical line of
defense. Detecting and preventing fraudulent activity
not only protects company assets, but also protects
the interests of shareholders, employees and other
stakeholders. This, in turn, contributes to a more
reliable and stable business environment.
Ensuring the implementation of the decision of the
President of the Republic of Uzbekistan "On further
increasing the efficiency of the State budget
expenditures of the Republic of Uzbekistan and
improving the activities of state financial control
bodies" dated February 14, 2022 PQ-128, as well as the
Ministry and In order to further develop the internal
audit service of agencies and improve the regulation of
their activities, the Cabinet of Ministers decides:
1. The model regulation on the internal audit service of
the Ministries and agencies (hereinafter referred to as
the Regulation) should be approved in accordance
with the appendix:
the basis and procedure for organizing internal audit services in ministries and
agencies;
duties and functions of the internal audit service;
Volume 04 Issue 06-2024
24
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
22-25
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
qualification requirements for employees of the internal audit service and
restrictions on participation in internal audit activities;
analysis and assessment of compliance with budget legislation by internal audit
services and study of the formation of financial reports;
preparing reports on the rights and obligations of the internal audit service, as well
as the activities of the internal audit service;
1. TABLE
Strengthened internal audit processes in the area of
compliance and governance are indispensable.
Regulatory requirements are becoming increasingly
strict, which requires strict adherence to rules and
standards. Effective internal audits ensure that
organizations operate within legal boundaries, support
ethical practices, and reduce risks associated with non-
compliance. This not only reduces legal liabilities but
also fosters a culture of transparency and
accountability. Operational efficiency is another area
where improved internal auditing will have a profound
impact. Through systematic review and analysis, the
audit identifies inefficiencies, redundancies and
bottlenecks in the processes. By solving these
problems, organizations can streamline operations,
reduce costs, optimize resource allocation, and
improve overall efficiency. This efficiency translates
into clear socio-economic benefits such as increased
competitiveness and profitability. In addition, risk
management is inextricably linked to improving
internal auditing. In today's dynamic business
environment, organizations face many risks, from
financial volatility to cyber security threats. Strong
internal audits assess and mitigate these risks, enabling
companies
to
anticipate
challenges,
respond
effectively, and maintain resilience. This proactive
approach not only protects against potential losses,
but also instills confidence in investors, creditors and
other stakeholders.
The socio-economic impact of improved internal
auditing extends beyond individual organizations.
They contribute to broader economic stability by
strengthening investor confidence, attracting capital
investment and stimulating job creation. Professionals
skilled in audit and compliance roles play a vital role in
this ecosystem, driving innovation, best practices and
sustainable growth. The importance of internal audit is
particularly evident in areas such as health, education
and public services. Rigorous audits ensure
accountability, transparency and responsible use of
resources, thereby increasing public trust and
satisfaction. This, in turn, paves the way for better
Volume 04 Issue 06-2024
25
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
06
P
AGES
:
22-25
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
service delivery, better outcomes, and a more just
society.
CONCLUSION
In conclusion, the socio-economic importance of
improving internal audit processes cannot be
overestimated. From financial integrity to risk
management, from compliance to innovation, internal
audit is the cornerstone of modern governance and
business excellence. By investing in strong audit
practices, organizations build a foundation for
sustainable growth, ethical leadership, and a
sustainable economy locally and globally.
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Vazirlik va idoralarning ichki
audit xizmati to‘g‘risidagi namunaviy nizomni
tasdiqlash haqida (lex.uz)
