Abstract
Internal audit is an integral part of modern corporate governance systems and plays a crucial role in evaluating and improving the effectiveness of an organization’s internal control mechanisms. Internal audit is considered an independent function within an enterprise, aimed at enhancing management processes, optimizing resource utilization, and reducing risks. This study analyzes the content of the internal audit system, its functions, its role in improving managerial reporting, and its significance in economic decision-making. The article examines the interrelationship between internal audit and the internal control system, highlighting their importance in ensuring the sustainable development of an organization. The study identifies the main functions and responsibilities of internal auditors and proposes mechanisms for effective organization of internal audit in the context of Kazakhstani enterprises. In addition, factors affecting the effectiveness of the internal control system and ways to improve it are analyzed. The authors emphasize the need to develop the methodological and informational base of internal audit to enhance the quality of managerial reporting. Internal audit ensures the accuracy, timeliness, and relevance of managerial reports, providing company management with reliable information for strategic decision-making. This, in turn, strengthens the financial stability of the organization and improves its overall efficiency. The study results identify modern directions for improving managerial reporting, including the implementation of digital technologies, the use of risk-based audit methods, and the advantages of automating internal audit functions. Enhancing internal audit enables organizations to increase transparency, flexibility, and the ability to implement long-term development strategies.