Abstract. This article discusses the essence and significance of financial reporting in non-state non-profit organizations (NSNPOs) and scientifically based recommendations on improving the methodology of conducting audits in them. Also, the features of audits of financial statements in non-state non-profit organizations (NSNPOs) are highlighted, a general plan and program of work for audits of financial statements are developed, and the procedure for auditing financial statements in non-state non-profit organizations is recommended. It can be seen from the coordination of the international and the Republic of Uzbekistan auditing practice that it is not appropriate to fully apply the existing and used methods in the audits of commercial economic entities to the audit of NSNPOs activities. In addition, it is necessary to further improve the general audit methodology that exists in the non-profit sector of various levels of economic entities and business organization for individual organizations in the non-state non-profit sector, including the audit methodology of the activities of associations and unions. There is a special cross-system feature of the audit of NSNPOs activity. Accounting, auditing, economic analysis methods, and modern information technologies should be used in the audit of their financial statements. These cases make it possible to conclude on the necessity of further improvement of audit theory, methodology and methods of its organization in the case of associations and unions based on the principles of a comprehensive approach to the creation of a systematic theory of the audit of financial statements of NSNPOs.
Keywords: non-profit organizations, association, political party, founder, Unified State Register of Legal Entities (USRLE), financial statement, target income, special-purpose financing, grants, donation, income from charitable donations, charity, proactive audit, mandatory audit.