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Research methodology 
The methodology of this research papers relies on the data collection, observation, as well as 
study of statutory acts based on the general scientific principles of research, which envisage 
general and systematic approaches to the study of economic relations and phenomena in their 
development, as well as interrelation. The systematic approach has been used to research the 
concept of financial investment, to define the concept of formulating the concept for audit of 
financial investments and its level of development. Moreover, it has determined the stages of 
audit of financial investments, formation of audit conclusions, research in the field of effective 
use of financial investments in the services sector. 
Analysis and results 
The system of statutory regulation of auditing activities has been created in our country during 
the independence period. Moreover, systematic activities have been carried out to adjust them in 

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MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
compliance with international auditing standards, to improve the methodology of auditing 
processes. As a result, an independent audit methodology has been created in our country. 
Although the audit methodology has already been created by this time, it is necessary to improve 
it as a result of the reforms implemented in the economic sectors. 
The Law of the Republic of Uzbekistan “On audit activities” states that “An audit is an 
examination of the financial statements and related financial information of an economic entity, 
carried out by an audit organization in order to establish reliability and compliance of the audited 
financial statements and related financial information with accounting legislation” [2]. The audit 
organization carries out activities of economic entities in the implementation of audit inspections 
in reliance upon the national standards of audit activity and provides audit conclusions. 
Currently the measures on adjusting the national audit activity system in compliance with the 
international audit activity systems determines the need to conduct research on the audit activity 
in the future. In particular, the international standards on auditing and international standards of 
quality assurance, international standards of analytical inspections, international standards of 
reliability assurance, international standards of related services, published by the International 
Auditing and Assurance Standards Board (IAASB), imply international standards of audit 
activities. 
Currently auditing activities in our country are implemented on the basis of the standards of 
auditing activities posted on the official website of the public body authorized in the field of 
auditing activities, which do not contradict the legislation of the Republic of Uzbekistan in 
reliance upon permission of the International Federation of Accountants (IFAC) to publish in the 
Republic of Uzbekistan. 
The planning of the audit is considered one of the processes of the audit activity. For example, 
“One of the important steps in the planning process of the audit is evaluation of the accounting 
and internal control systems of economic entities, which is regulated by the relevant national 
standard. It is known that control represents one of the functions of management. Therefore, 
organization and implementation of the internal control system is considered a tool that helps the 
executive in managing this economic entity”. [8] 
One of the essential elements of the audit is the quality control system, which can be used to 
assess the reliability of the audit conclusion. Communicating audit quality control policies and 
procedures to the employees of the audit organization includes explanation of the quality control 
policies and procedures, as well as objectives to be achieved by their organization. In addition, it 
implies that each person has personal responsibility for quality and is expected to comply with 
these policies and procedures. Encouraging the employees of the audit organization to express 
their opinions or attitudes on quality control matters represents the significance of obtaining 
feedback on the quality control system of the audit organization. 
Therefore, it is necessary to determine focus areas of the inspection, the sequence of actions, and 
required sources of evidence when planning the control procedures of the audit of financial 
investments in economic entities. With the aim of regulating specific activities and reducing 
audit risk, it is recommended to prepare a special program for the audit of financial investments. 
[11] 
In the process of carrying out audit of investments, an auditor must verify which method is used 
in the evaluation of investments and whether it corresponds to the option selected having 
consideration for the entity’s accounting policy. 
Expenditures associated with the implementation of investments should be confirmed with 
documents and reflected in the analytical accounting. The value of some financial placements 
(shares) can be confirmed by explanatory notes and other documents confirming ownership 
rights. 

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