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Formulation of the problem. This study examines how modern technologies have been integrated into internal control systems in Azerbaijan between 2020 and 2025, focusing on financial institutions, large enterprises, and the public sector. The purpose of the study. The purpose of the study is to comprehensively analyze the current state of internal control systems in Azerbaijan and substantiate ways to improve them through the introduction of modern technologies to increase the efficiency of corporate governance and financial transparency. The object of the study is the organizational, methodological and technological aspects of strengthening internal control systems through the implementation of modern digital technologies and innovative monitoring tools. Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. The introduction of modern digital technologies (including automation systems, data analytics, artificial intelligence, and blockchain) into the internal control systems of Azerbaijani organizations will significantly increase their efficiency, reduce operational risks, improve the detection of financial violations, and ensure greater transparency of business processes, which will contribute to the overall strengthening of corporate governance in the country. Present of the main material. The findings indicate substantial progress in technology-enabled controls parallel to Azerbaijan’s rapid advancement in e-government and enterprise digitalisation. The introduction of risk-based regulatory frameworks, expanded use of ERP systems, automated transaction monitoring, and data analytics within internal audit functions has contributed to higher reliability of financial reporting, enhanced operational discipline, and improved compliance culture. However, the level of technology adoption is heterogeneous: leading banks and state-owned enterprises are significantly ahead of SMEs and some budget-funded entities. Originality and practical significance. The paper proposes a Composite Digital Control Readiness Index to quantify developments over 2020–2025 and presents indicative statistics and diagram-ready datasets demonstrating positive trends. Conclusions and prospects for further research. The results suggest that sustained investment in digital infrastructure, unified standards based on COSO principles, capacity building, integration of AI-supported tools, and more consistent implementation among smaller entities are critical for consolidating these gains. The study contributes context-specific evidence for Azerbaijan and offers a practical framework for aligning technological transformation with robust internal control architectures.