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Accounting of Liabilities and Internal Audit In Higher Education Institutions
Corresponding Author(s) : Ermatova Sahodathon Ismoilovna
American Journal of Economics and Business Management,
Vol. 8 No. 4 (2025): April
Abstract
Financial governance in higher education institutions (HEIs) is increasingly recognized as a cornerstone of institutional stability and academic excellence. Accurate liability accounting and effective internal audits ensure transparency, optimize expenditures, and mitigate financial risks. In Uzbekistan, HEIs are undergoing significant financial reforms that necessitate enhanced accountability mechanisms, particularly in the management of liabilities and the implementation of internal audit systems. Despite regulatory frameworks, many HEIs continue to face discrepancies in liability documentation and audit practices, largely due to outdated manual systems and a lack of qualified personnel skilled in digital accounting technologies. This study investigates current practices in liability accounting and internal auditing across public and private HEIs in Uzbekistan, identifies the underlying challenges, and proposes practical solutions based on international best practices. Analysis from 2022–2024 revealed up to a 25% error rate in liability reporting among public HEIs and demonstrated that institutions using digital platforms like QuickBooks reduced financial risks by 20% and improved budget execution by 12%. The study also found that most internal audits remained procedural, lacking predictive risk analysis. The article introduces a model integrating digital financial tools, risk-based audit frameworks, and ERP systems to modernize liability tracking and strengthen institutional accountability. These insights call for policy-driven reforms focusing on technological integration, digital capacity building, and structural enhancement of audit mechanisms to elevate the financial efficiency and governance quality of HEIs in Uzbekistan.
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- J. Kim и I. H. Chung, «Accrual-based accounting and fiscal performance: Empirical evidence from higher education institutions», Public Perform. Manag. Rev., т. 46, вып. 4, сс. 920–941, 2023.
- A. A. Arens, R. J. Elder, и M. S. Beasley, Auditing and Assurance Services. Pearson, 2021.
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References
J. Kim и I. H. Chung, «Accrual-based accounting and fiscal performance: Empirical evidence from higher education institutions», Public Perform. Manag. Rev., т. 46, вып. 4, сс. 920–941, 2023.
A. A. Arens, R. J. Elder, и M. S. Beasley, Auditing and Assurance Services. Pearson, 2021.
S. DeSimone и K. Rich, «Determinants and consequences of internal audit functions within colleges and universities», Manag. Audit. J., т. 35, вып. 8, сс. 1143–1166, 2020.
A. Yusupov, «Ichki auditning zamonaviy usullari», Sanoat Texnologiyalari, т. 30, вып. 2, сс. 15–22, 2022.
I. Abdulai, A. Salakpi, и T. B. Nassè, «Internal audit and quality of financial reporting in the public sector: the case of University for Development Studies», Finance Account. Res. J., т. 3, вып. 1, сс. 1–23, 2021.
M. Munadi и H. N. Aisyiah, «Internal Audit Management in Islamic Higher Education: An Effort to Minimize the Potential of Audit Findings», J. High. Educ. Theory Pract., т. 22, вып. 15, сс. 106–119, 2022.
N. A. Kazakova, E. B. Shuvalova, и S. S. Chikurova, «Internal Audit of Estimated Reserves and Liabilities as a Diagnostic Method for Corporate Risks», в International Scientific Conference «Far East Con» (ISCFEC 2020), Atlantis Press, 2020, сс. 2467–2472.
G. Chi и A. R. Gooda, «Internal control, debt risk, CEO education and earnings management evidence from China», J. Financ. Report. Account., т. 22, вып. 1, сс. 52–78, 2024.
C. Drury, Management and Cost Accounting. Cengage Learning, 2018.
A. Narayan и J. Stittle, «The role of accounting in transforming public tertiary institutions in New Zealand», Account. Audit. Account. J., т. 31, вып. 2, сс. 503–530, 2018.
O. Xamidov, «O‘zbekiston ta’lim tizimida moliyaviy boshqaruv muammolari», Iqtisodiyot Va Innov. Jurnali, т. 46, вып. 3, сс. 28–35, 2023.
O‘zbekiston Respublikasi Oliy ta’lim, fan va innovatsiyalar vazirligi, «Oliy ta’lim muassasalari moliyaviy hisobotlari 2023». 2024 г.
L. B. Sawyer, M. A. Dittenhofer, и J. H. Scheiner, Sawyer’s Internal Auditing. The Institute of Internal Auditors, 2019.
I. A. Nisak и S. Rochayatun, «The role of internal audit, fraud detection, and prevention in universities: a literature review», Dialekt. J. Ekon. Dan Ilmu Sos., т. 8, вып. 1, сс. 63–71, 2023.
A. D. R. Fonseca, S. Jorge, и C. Nascimento, «The role of internal auditing in promoting accountability in Higher Education Institutions», Rev. Adm. Pública, т. 54, вып. 2, сс. 243–265, 2020.