The independence and effectiveness of external audits are critical to ensuring the integrity of financial reporting, corporate governance, and investor confidence. Government oversight has emerged as a fundamental mechanism in enhancing audit quality by enforcing compliance with professional standards, mitigating conflicts of interest, and strengthening auditor independence. This study explores the role of government oversight in external audits, examining its impact on audit quality and regulatory enforcement across different jurisdictions. The research begins by analyzing the conceptual foundations of external audits and the necessity of independent oversight. Through a comparative analysis, the study highlights the strengths and limitations of these models, assessing their effectiveness in reducing financial misstatements, enforcing audit firm accountability, and promoting transparency in financial reporting. The findings suggest that regulatory oversight has contributed significantly to improving audit quality, with mechanisms such as mandatory audit firm rotation, restrictions on non audit services, and enhanced audit inspections playing a crucial role in safeguarding auditor objectivity. However, challenges persist in achieving an optimal balance between stringent regulatory controls and professional discretion. Excessive regulatory burdens may increase compliance costs and reduce competition in the audit market, while the globalization of financial markets necessitates greater coordination among international audit regulators. This study concludes that strengthening government oversight mechanisms requires a dynamic and risk based approach that integrates technological advancements, fosters regulatory harmonization, and ensures proportionality in compliance requirements. By addressing these challenges, policymakers can enhance the effectiveness of audit oversight frameworks, reinforcing the confidence of stakeholders in financial disclosures and maintaining the stability of financial markets.
I.I. Hagverdiyev (Thu,) studied this question.