TRANSPARENCY OF AUDIT FIRMS: ANALYSIS OF TRANSPARENCY REPORTS IN TURKEY

Abstract

Transparency may improve audit quality. In order to increase transparency of audit firms, regulators require audit firms to issue a transparency report. In this regard, the Eighth EU Directive requires audit firms to publish annual transparency reports. In Turkey Independent Audit By-Law has requirements similar to those contained in Article 40 of the EU Directive. The paper examines contents of 2017 transparency reports of audit firms in Turkey. The paper assesses the level of audit firms compliance with requirements of transparent reporting set by the By-Law. The sample of the study consists of 88 transparency reports of audit firms that conducted audit of public interest entities (PIEs) in 2016 in Turkey.

Keywords: Transparency report, audit firms, Turkey, KGK

DOI: 10.7176/RJFA/10-8-22

Publication date: April 30^th 2019