THE ROLE OF EXTERNAL AUDITS IN STRENGTHENING CORPORATE GOVERNANCE: A CASE STUDY OF ALOQABANK
DOI:
https://doi.org/10.5281/zenodo.17443799Keywords:
Corporate Governance, External Audit, Board Independence, Compliance, Uzbekistan, Aloqabank.Abstract
Corporate governance is a cornerstone of fnancial transparency, especially in transitional economies likeUzbekistan. External audits serve as a critical mechanism to ensure oversight, regulatory compliance, and board
accountability in commercial banks. This study investigates the influence of external audits on corporate governance
at Aloqabank over a ten-year period (2014–2024). Adopting a quantitative approach, the research examines whether
audit opinions correlate with improvements in governance indicators, particularly board independence and regulatory
compliance scores. Secondary data from audit reports, annual flings, and corporate disclosures are used to trace changes
in governance structures over time. Descriptive statistics, correlation matrices, and regression models are employed
to determine if external audit outcomes predict shifts in governance behaviour. The fndings reveal a strong positive
relationship between favourable audit assessments and board independence, suggesting that regular and high-quality
audits contribute to institutional reforms. Moreover, governance compliance scores have improved in years with more
robust audit opinions, indicating a signalling and corrective effect. The results underscore the strategic role of auditors not
only in fnancial verifcation but also in enforcing governance standards. These insights have implications for regulators,
boards, and policymakers seeking to strengthen governance in the Uzbek banking sector.
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