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Azimova F.M.
Teacher
of the department of "Finance and Credit " of the Russian Economic University named after G. V. Plekhanov Tashkent branch Tashkent city, Uzbekistan
IMPROVING FINANCIAL REPORTING AND AUDITING IN JOINT
STOCK COMPANIES
Abstract: this article examines various definitions of the concept of improving financial statements and conducting audits in joint-stock companies. As well as the principles of approximation to IFRS.
Keywords: accounting, income, contract, revenue, inventory, variable remuneration, fixed amount, efficiency of use, improving accounting.
In the countries of the world, special attention is paid to increasing the efficiency of joint-stock companies, introducing modern principles of corporate management and increasing the transparency of information in financial reports. However, despite the measures taken in this area, many companies in the world are facing fraud related to financial reporting. According to the International Association of Auditors Fighting Fraud, "11 % of the world's countries have fraud cases in the banking and finance sector, 12% in the industry, and 18% in the construction sector" Therefore, in the countries of the world, the correct application of accounting principles and the improvement of the quality of audits are given special importance in preventing and eliminating fraud related to financial statements.
In various countries of the world, special attention is paid to scientific research aimed at improving the preparation and auditing of financial statements in joint-stock companies in the context of the globalization of the economy. In these studies, the issues of compliance with accounting principles in the preparation of financial statements, improvement of the statement of financial position, improvement of the calculation of profits and losses and other gross income, planning of the audit of financial statements, determining the optimal set of audit risks, determining the level of importance in the audit of financial statements, and drawing up auditor's conclusions are solved. found It should be recognized that in the field of research, at the same time, the transformation of financial statements to international standards, the assessment of events and continuity of activities after the reporting period in the audit of financial statements, and the improvement of the process of using written submissions in ensuring the adequacy and appropriateness of audit evidence have been achieved. However, current issues related to the preparation of financial statements and the organization of audits at the level of international standards have not yet been
fully resolvedJoint-stock companies must achieve a positive result in terms of financial status and financial results in order to protect the rights and interests of their shareholders, to provide them with a guarantee of receiving dividends. Information about the financial position and financial results is provided by the accounting service. When organizing accounting work by a business entity, first of all, it is required to observe the principle of continuity.
In the audit of financial statements conducted by auditing organizations, auditors must assess the continuity of operations. That is, a joint-stock company that has received a positive audit opinion should not go bankrupt in the next 12 months. Therefore, all the factors affecting the activity should be studied in audits.
The results of the assessment of business continuity during audits are the basis for choosing the type of audit opinion (Table 1).
Table 1. Options for choosing an auditor's report on the going concern assumption_
Approximate type of audit report Basis for comment
Annotated audit report Information about material misstatements is not adequately disclosed in the financial statements
Negative conclusion Management did not follow the principle of continuity in the preparation of financial statements
Refusal to conclude Audit evidence is insufficient to provide an objective opinion
Thus, the assessment of continuity of activity is the subject of the auditor's professional opinion and is related to the formation of an opinion about events that may not be determined at the date of drawing up the financial statements. Disclosure of the future prospects of the economic entity will be subject to a significant increase in audit risk. Therefore, the need to identify and assess various risks that affect operations and depend on continuity occurs at all stages of the audit and requires the auditor's attention.
Evidence gathering is a key process in audits. AXS No. 500, Audit Evidence, describes many methods of gathering audit evidence. These methods are used depending on the type of inspection, operational characteristics of the client enterprise and other circumstances. The most reliable evidence when gathering evidence in audits is information obtained from third parties. However, if it is not possible to obtain written evidence from third parties, in accordance with AXS No. 580 entitled "Written Submissions", it is required to obtain written submissions from the management of the entity conducting the audit. Along with
the above, it is also required to confirm that the responsibility for the financial report prepared for the reporting period and intended for external users rests with the entity's management.
According to AXS No. 580 "Written submissions", the main part of written confirmations is obtained from the management in order to obtain information on the events that occurred in this economic entity after the reporting date.
If management's representations are inconsistent with other audit evidence, the auditor should review the situation and, if necessary, reassess the reliability of management's representations.
According to AXS No. 580 "Written Submissions", the main elements of a written submission are as follows
1-Picture. Basic elements of a written presentation
If the management of the organization refuses to provide the representations and explanations that the auditor considers necessary, this is a limitation of the scope of the audit. In this case, the auditor should express a negative opinion or reject the opinion.
Based on the above, it is worth noting that it is necessary to use management's presentations during audits. If the management gives incorrect representations or refuses to give them, this situation directly affects the formation of the auditor's opinion and the type of the auditor's conclusion. The following
conclusions were formed as a result of the research conducted on improving the preparation and auditing of financial statements in joint-stock companies:
Joint-stock companies play an important role in the economy of our country, in the formation of gross domestic product and budget revenues. Nowadays, it is important to introduce modern corporate management methods in joint-stock companies, to ensure that the reports prepared by them meet the requirements of international standards, and to confirm the reliability of the presented reports based on international standards.
LIST OF USED LITERATURE
1. Закон Республики Узбекистан «О бухгалтерском учете» от 13 апреля 2016 года №ЗРУ-404
2. Национальный стандарт бухгалтерского учета №2 «Доходы от основной хозяйственной деятельности»
3. Национальный стандарт бухгалтерского учета №21 «План счетов бухгалтерского учета финансово-хозяйственной деятельности хозяйствующих субъектов, и инструкция по его применению»
4. Налоговый Кодекс Республики Узбекистан.
5. МСФО 15 «Выручка по договорам с покупателями».
6. Постановлением Президента РУз от 24 февраля 2020 года №ПП-4611 «О дополнительных мерах по переходу на международные стандарты финансовой отчетности».
7. МЖ Темирханова. Вопросы совершенствования финансовой отчетности в туристических компаниях на основе требований международных стандартов (IAS IFRS). Бюллетень науки и практики 4 (3), 217-223
8. Темирханова М.Ж. Проблемы в совершенствовании приближения к международным стандартам отчетности финансовых результатов в туристических компаниях. Калужский экономический вестник. 2018. № 4. С. 59-61.
