We describe a major upgrade of a Monte Carlo code which has previously been used for many studies of dense star clusters. We outline the steps needed in order to calibrate the results of the new Monte Carlo code against $N$-body simulations for large $N$ systems, up to $N=200000$. The new version of the Monte Carlo code (called MOCCA), in addition to the features of the old version, incorporates the direct Fewbody integrator (Fregeau et al. 2004) for three- and four-body interactions, and a new treatment of the escape process based on Fukushige & Heggie (2000). Now stars which fulfil the escape criterion are not removed immediately, but can stay in the system for a certain time which depends on the excess of the energy of a star above the escape energy. They are called potential escapers. With the addition of the Fewbody integrator the code can follow all interaction channels which are important for the rate of creation of various types of objects observed in star clusters, and ensures that the energy generation by binaries is treated in a manner similar to the $N$-body model. There are at most three new parameters which have to be adjusted against $N$-body simulations for large $N$: two (or one, depending on the chosen approach) connected with the escape process, and one responsible for the determination of the interaction probabilities. The values adopted for the free parameters have at most a weak dependence on $N$. They allow MOCCA to reproduce $N$-body results with reasonable precision, not only for the rate of cluster evolution and the cluster mass distribution, but also for the detailed distributions of mass and binding energy of binaries. Additionally, the code can follow the rate of formation of blue stragglers and black hole - black hole binaries.
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