BAĞIMSIZ DENETİMİ TALEP EDEN HALKA AÇIK OLMAYAN KOBİ'LERİN KARAKTERİSTİK ÖZELLİKLERİ: TÜRKİYE ÖRNEĞİ

Year 2023, Volume: 25 Issue: 4, 498 - 525, 31.12.2023

Serhat Şamil Şaban Uzay

https://doi.org/10.31460/mbdd.1273455

Abstract

Zorunlu bağımsız denetimin gerekliliği ve kapsamı, fayda-maliyet değerlendirmeleri ile tartışılagelen bir konudur. Talep eden firmaların özellikleri de söz konusu değerlendirmeler kapsamında dikkate değer bir boyuttur. Bu çalışma ile zorunlu bağımsız denetim ve bağımsız denetim talebi eksenindeki tartışmalara Türkiye'den örnekle katkı sağlamak amaçlanmaktadır.
Çalışmada deneysel olmayan bir araştırma tasarımı kullanılmış olup, bağımsız denetimi talep eden firmaların farklılaşan özellikleri ortaya konulmaya çalışılmıştır. Bağımsız denetim talebi ile şirketlerin büyüklükleri, finansman ilişkileri ve mülkiyet yapıları arasındaki ilişki konusunda literatürle paralel olarak destekleyici kanıtlar elde edilmiştir. Ayrıca bulgular, denetim talebi ile Ar-Ge yatırımları, uluslararasılaşma ve yasal düzene ilişkin algı arasındaki öngörülen ilişkileri desteklemektedir.

Keywords

Bağımsız Denetim Talebi, Zorunlu Bağımsız Denetim, Vekalet Teorisi

CHARACTERISTICS OF NON-PUBLIC SMALL AND MEDIUM ENTERPRISES THAT DEMAND AUDIT SERVICES: EVIDENCE FROM TURKEY

Abstract

The necessity and scope of mandatory audit is an issue discussed alongside benefit-cost evaluations. The characteristics of companies demanding audits are noteworthy in this respect. This study aims to contribute to the discussions on audit demand and mandatory audit, with evidence from Turkey. A non-experimental research approach is employed to identify the distinctive characteristics of SMEs that demand audit. Evidence supporting previous studies is obtained on the relationship between audit demand and size, financing relationships and ownership structure. Furthermore, the results also significantly support the hypothesized association between audit demand and internationalization, R&D, and legal system perception.

Keywords

Audit Demand, Mandatory Audit, Agency Theory

Thanks

"We thank the Enterprise Analysis Unit of the Development Economics Global Indicators Department of the World Bank Group for making the data available."

References

• Abdel-Khalik, A. R. (1993). Why Do Private Companies Demand Auditing? A Case for Organizational Loss of Control. Journal of Accounting, Auditing & Finance, 8(1), 31–52. https://doi.org/10.1177/0148558X9300800103
• Aboody, D., & Lev, B. (2000). Information Asymmetry, R&D, and Insider Gains. The Journal of Finance, 55(6), 2747–2766. https://doi.org/10.1111/0022-1082.00305
• Arosa, B., Iturralde, T., & Maseda, A. (2010). Ownership structure and firm performance in non-listed firms: Evidence from Spain. Journal of Family Business Strategy, 1(2), 88–96. https://doi.org/10.1016/j.jfbs.2010.03.001
• Blackwell, D. W., Noland, T. R., & Winters, D. B. (1998). The Value of Auditor Assurance: Evidence from Loan Pricing. Journal of Accounting Research, 36(1), 57–70. https://doi.org/10.2307/2491320
• Breesch, D., Hardies, K., & De Muylder, J. (2012). The Added Value of Auditing in Belgium: Does Audit Remain If No Longer Mandatory? (SSRN Scholarly Paper 2190396). https://doi.org/10.2139/ssrn.2190396
• Briozzo, A., & Albanese, D. (2020). Voluntary audit, investment, and financing decisions in Latin American small and medium enterprises. Journal of International Accounting, Auditing and Taxation, 38, 100302. https://doi.org/10.1016/j.intaccaudtax.2020.100302
• Carey, P., Knechel, W. R., & Tanewski, G. (2013). Costs and Benefits of Mandatory Auditing of For-profit Private and Not-for-profit Companies in Australia. Australian Accounting Review, 23(1), 43–53. https://doi.org/10.1111/auar.12003
• Carey, P., Simnett, R., & Tanewski, G. (2000). Voluntary Demand for Internal and External Auditing by Family Businesses. AUDITING: A Journal of Practice & Theory, 19(1), 37–51. https://doi.org/10.2308/aud.2000.19.s-1.37
• Carey, P., & Tanewski, G. (2013). Voluntary demand for auditing by farm businesses: An Australian perspective. Accounting and Management Information Systems, 12(2), 213–234.
• Chen, T. T. Y., Zhang, F. F., & Zhou, G. S. (2017). Secrecy Culture and Audit Opinion: Some International Evidence. Journal of International Financial Management & Accounting, 28(3), 274–307. https://doi.org/10.1111/jifm.12057
• Chow, C. W. (1982). The Demand for External Auditing: Size, Debt and Ownership Influences. The Accounting Review, 57(2), 272–291.
• Collis, J. (2010a). Audit Exemption and the Demand for Voluntary Audit: A Comparative Study of the UK and Denmark. International Journal of Auditing, 14(2), 211–231. https://doi.org/10.1111/j.1099-1123.2010.00415.x
• Collis, J. (2010b). Demand not command in financial reporting by small companies in the UK. 6th Annual Workshop on Accounting in Europe, University of Stirling. Retrieved December, 5, 2011.
• Collis, J. (2012). Determinants of voluntary audit and voluntary full accounts in micro- and non-micro small companies in the UK. Accounting and Business Research, 42(4), 441–468. https://doi.org/10.1080/00014788.2012.667969
• Collis, J. (2007, April). Progress towards harmonisation of audit exemption in the EU and the case of the UK [Conference]. 30th Annual Congress of the European Accounting Association (EAA), Lisbon, Portugal. https://eprints.kingston.ac.uk/id/eprint/3288/
• Collis, J., Jarvis, R., & Skerratt, L. (2004). The demand for the audit in small companies in the UK. Accounting and Business Research, 34(2), 87–100. https://doi.org/10.1080/00014788.2004.9729955
• Corten, M., Steijvers, T., & Lybaert, N. (2015). The demand for auditor services in wholly family-owned private firms: The moderating role of generation. Accounting and Business Research, 45(1), 1–26. https://doi.org/10.1080/00014788.2014.959462
• Dedman, E., Kausar, A., & Lennox, C. (2014). The Demand for Audit in Private Firms: Recent Large-Sample Evidence from the UK. European Accounting Review, 23(1), 1–23. https://doi.org/10.1080/09638180.2013.776298
• Deng, P., & Zhang, S. (2018). Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs. Journal of Business Research, 92, 279–289. https://doi.org/10.1016/j.jbusres.2018.07.014
• Diallo, B. (2021). Do National Cultures Matter for External Audits? Evidence from Eastern Europe and the Middle East. Journal of Business Ethics, 172(2), 347–359. https://doi.org/10.1007/s10551-020-04482-9
• Duits, H. B. (2012). The added value of auditing in a non-mandatory environment. Vossiuspers UvA.
• European Commission (EC). (2010). Green Paper “Audit policy: Lessons from the crisis”. Brussels, October 13th.
• European Commission (EC). (2013). A recovery on the horizon? Annual report on European SMEs 2012/2013. Brussels: European Commission.
• European Commission (EC). (2014a). A partial and fragile recovery. Annual report on European SMEs 2013/2014. Brussels: European Commission.
• European Commission. (2014b). Public procurement as a driver of innovation in SMEs and public services. Brussels: European Commission.
• Enterprise Surveys Indicators Data—World Bank Group. (2020). World Bank. https://www.enterprisesurveys.org
• Farooq, O., & Shehata, N. F. (2018). Does external auditing combat corruption? Evidence from private firms. Managerial Auditing Journal, 33(3), 267–287. https://doi.org/10.1108/MAJ-08-2017-1634
• Fearnley, S., Hines, T., McBride, K., & Brandt, R. (2000). Raising the threshold for audit exemption for small companies: Some implications for other users of audit services. Journal of Financial Regulation and Compliance, 8(4), 300–308. https://doi.org/10.1108/eb025051
• Francis, J. R., Khurana, I. K., Martin, X., & Pereira, R. (2011). The Relative Importance of Firm Incentives versus Country Factors in the Demand for Assurance Services by Private Entities*: The Relative Importance of Firm Incentives versus Country Factors. Contemporary Accounting Research, 28(2), 487–516. https://doi.org/10.1111/j.1911-3846.2010.01053.x
• Francis, J. R., Khurana, I. K., & Pereira, R. (2003). The role of accounting and auditing in corporate governance and the development of financial markets around the world. Asia-Pacific Journal of Accounting & Economics, 10(1), 1–30. https://doi.org/10.1080/16081625.2003.10510613
• Godfrey, J. M., & Hamilton, J. (2005). The Impact of R&D Intensity on Demand for Specialist Auditor Services*. Contemporary Accounting Research, 22(1), 55–93. https://doi.org/10.1506/P9FJ-EKAL-FPJQ-CM9N
• Ha, H. H., & Nguyen, A. H. (2020). Determinants of Voluntary Audit of Small and Medium Sized Enterprises: Evidence from Vietnam. The Journal of Asian Finance, Economics and Business, 7(5), 41–50. https://doi.org/10.13106/jafeb.2020.vol7.no5.041
• Haapamäki, E. (2018). Voluntary Auditing: A Synthesis of the Literature. Accounting in Europe, 15(1), 81–104. https://doi.org/10.1080/17449480.2018.1430369
• Habib, A., Wu, J., Bhuiyan, Md. B. U., & Sun, X. (Sean). (2019). Determinants of auditor choice: Review of the empirical literature. International Journal of Auditing, 23(2), 308–335. https://doi.org/10.1111/ijau.12163
• Hay, D. C., Knechel, W. R., & Wong, N. (2006). Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research, 23(1), 141–191. https://doi.org/10.1506/4XR4-KT5V-E8CN-91GX
• Hay, D., Knechel, W. R., & Willekens, M. (Eds.). (2014). The Routledge Companion to Auditing. Routledge. https://doi.org/10.4324/9780203094921
• Iatridis, G. E. (2012). Audit quality in common-law and code-law emerging markets: Evidence on earnings conservatism, agency costs and cost of equity. Emerging Markets Review, 13(2), 101–117. https://doi.org/10.1016/j.ememar.2012.01.001
• Jaggi, B., & Low, P. Y. (2011). Joint effect of investor protection and securities regulations on audit fees. The International Journal of Accounting, 46(3), 241–270.
• Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
• Jeppesen, K. K. (2019). The role of auditing in the fight against corruption. The British Accounting Review, 51(5), 100798. https://doi.org/10.1016/j.bar.2018.06.001
• Kamarudin, N., Zainal Abidin, Z., & Smith, M. (2012). Audit exemption among SMEs in Malaysia. Asian Review of Accounting, 20(2), 152–162. https://doi.org/10.1108/13217341211242196
• Khurana, I. K., & Raman, K. K. (2004). Litigation risk and the financial reporting credibility of Big 4 versus non-Big 4 audits: Evidence from Anglo-American countries. The Accounting Review, 79(2), 473–495.
• Kim, J.-B., Simunic, D. A., Stein, M. T., & Yi, C. H. (2011). Voluntary audits and the cost of debt capital for privately held firms: Korean evidence. Contemporary Accounting Research, 28(2), 585–615.
• Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda. International Business Review, 23(6), 1109–1126. https://doi.org/10.1016/j.ibusrev.2014.03.006
• Lee, P. M., & O’Neill, H. M. (2003). Ownership Structures and R&D Investments of U.S. and Japanese Firms: Agency and Stewardship Perspectives. The Academy of Management Journal, 46(2), 212–225. https://doi.org/10.2307/30040615
• Lennox, C. S., & Pittman, J. A. (2011). Voluntary Audits versus Mandatory Audits. The Accounting Review, 86(5), 1655–1678.
• Minnis, M. (2011). The value of financial statement verification in debt financing: Evidence from private US firms. Journal of Accounting Research, 49(2), 457–506.
• Mustapha, M., & Yaen, C. H. (2013). Demand for Voluntary Audit by Small Companies in Malaysia. Management & Accounting Review (MAR), 12(2), Article 2. https://doi.org/10.24191/mar.v12i2.191
• Newman, D. P., Patterson, E. R., & Smith, J. R. (2005). The role of auditing in investor protection. The Accounting Review, 80(1), 289–313.
• Ojala, H., Collis, J., Kinnunen, J., Niemi, L., & Troberg, P. (2016). The demand for voluntary audit in micro-companies: Evidence from Finland. International Journal of Auditing, 20(3), 267–277.
• Pronobis, P., & Schaeuble, J. (2022). Foreign Ownership and Audit Fees in European Listed Firms. European Accounting Review, 31(3), 575–602. https://doi.org/10.1080/09638180.2020.1830819
• Rennie, M., Senkow, D., Rennie, R., & Wong, J. (2003). Deregulation Of the Private Corporation Audit In Canada: Justification, Lobbying, and Outcomes. Research in Accounting Regulation, 16, 227–241. https://doi.org/10.1016/S1052-0457(02)16014-0
• Salleh, A., Rose, R. C., Kumar, N., & Jaafar, S. (2008). External Auditors’ Viewpoint on Audit Exemption of Small Companies in Malaysia. ICFAI Journal of Audit Practice, 5(4), 22–34.
• Senkow, D. W., Rennie, M. D., Rennie, R. D., & Wong, J. W. (2001). The Audit Retention Decision in the Face of Deregulation: Evidence from Large Private Canadian Corporations. AUDITING: A Journal of Practice & Theory, 20(2), 101–113. https://doi.org/10.2308/aud.2001.20.2.101
• Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
• Tabone, N., & Baldacchino, P. J. (2003). The statutory audit of owner‐managed companies in Malta. Managerial Auditing Journal, 18(5), 387–398. https://doi.org/10.1108/02686900310476855
• Tauringana, V., & Clarke, S. (2000). The demand for external auditing: Managerial share ownership, size, gearing and liquidity influences. Managerial Auditing Journal, 15(4), 160–168. https://doi.org/10.1108/02686900010322353
• Thomsen, S., & Pedersen, T. (1998). Industry and ownership structure. International Review of Law and Economics, 18(4), 385–402. https://doi.org/10.1016/S0144-8188(98)00022-2
• Tsao, S.-M., Lu, H.-T., & Keung, E. C. (2017). Internationalization and Auditor Choice. Journal of International Financial Management & Accounting, 28(3), 235–273. https://doi.org/10.1111/jifm.12056
• Watts, R. L., & Zimmerman, J. L. (1983). Agency problems, auditing, and the theory of the firm: Some evidence. The Journal of Law and Economics, 26(3), 613–633.
• Weik, A., Eierle, B., & Ojala, H. (2018). What drives voluntary audit adoption in small German companies? International Journal of Auditing, 22(3), 503–521.
• Yoo, T., & Rhee, M. (2013). Agency theory and the context for R&D investment: Evidence from Korea. Asian Business & Management, 12(2), 227–252. https://doi.org/10.1057/abm.2013.2