INDEPENDENT AUDIT FIRM RELIABILITY IN TURKEY: A RESEARCH ON CMB SANCTIONS

Journal Title: Lectio Socialis - Year 2017, Vol 1, Issue 1

Abstract

The foundation of sound capital markets lies with effective and independent auditing mechanisms. Without properly working auditors it is not possible to ensure a fraud-free corporation. Thus, tighter regulations have become the target for fraud prevention by regulators, beginning with the Sarbanes – Oxley Act (SOX) coming into effect in 2002. As an emerging market, Turkey has followed the SOX example and updated regulations and audited the audit firms accordingly since. This paper aims to show the differences between audit companies that abide the rules and the audit companies that do not abide the rules. Mann – Whitney U test is applied to data of sanctioned audit firms between 2008 and 2017 gathered from Capital Markets Board of Turkey (CMB), and audit firms are compared according to their number of clients, the number of employed auditors and ownership type. Analysis results indicate a significant difference between sanctioned audit companies and auditor and client numbers. However, ownership is found not significant.

Authors and Affiliations

Lale Aslan

Keywords

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INDEPENDENT AUDIT FIRM RELIABILITY IN TURKEY: A RESEARCH ON CMB SANCTIONS

The foundation of sound capital markets lies with effective and independent auditing mechanisms. Without properly working auditors it is not possible to ensure a fraud-free corporation. Thus, tighter regulations have bec...

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  • EP ID EP353276
  • DOI -
  • Views 114
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How To Cite

Lale Aslan (2017). INDEPENDENT AUDIT FIRM RELIABILITY IN TURKEY: A RESEARCH ON CMB SANCTIONS. Lectio Socialis, 1(1), 6-15. https://europub.co.uk/articles/-A-353276