Purpose of the research - are the problems of the efficiency of the audit institute in improving transparency and ensuring accountability in Azerbaijan. The essence of the functions and significance of auditing in economic development processes are investigated for this purpose. The strategic functions and potential of audit effectiveness in improving transparency are analysed too. The role of auditing in ensuring the accountability of economic actors is investigated. Current problems of auditing activity in increasing transparency and strengthening reporting in the state period in the country are considered. Attention is paid to the issues of effective organization of the audit institute and its strategic role in the current conditions.

The methodology of the research – are systematic and complex approaches, comparative analysis, methodological approaches to the problems of efficiency of the audit institute in improving transparency and ensuring accountability in Azerbaijan.

The  practical importance of the research - the results and material of the study can be used in solving topical problems regarding the effectiveness of the audit institution in improving transparency and ensuring accountability in Azerbaijan.

The results of the research - the development and provision of effective mechanisms, recommendations and proposals on the problems of the institute of audit effectiveness in improving transparency and ensuring accountability in Azerbaijan.

The  originality and scientific novelty of the research - the research work considers the works of different researchers taking into account the author 's approach. The essence of the main problems and their importance in improving transparency and ensuring accountability are revealed. The strategic importance of audit functions is justified; their effectiveness and role in economic development processes are systematically studied. The importance of preparing effective mechanisms for effective organization of audit activities is noted. Ways of solving and the role of auditing in problems of ensuring the efficiency of the tax system, in increasing transparency in the economy and strengthening the reporting of economic entities are analyzed too.

Keywords: increased transparency, reporting, audit institute, auditing activities, audit efficiency problems, audit institute development.