IDENTIFICATION OF KEY PERFORMANCE INDICATORS OF AUDITOR’S REPORTS: EVIDENCE FROM BORSA ISTANBUL (BIST)

Year 2017, Volume: 3 Issue: 1, 854 - 859, 30.06.2017

Burcu Adiloglu Bengu Vuran

https://doi.org/10.17261/Pressacademia.2017.665

Abstract

According to International Standards on Auditing (IAS) 700 –Forming an
Opinion and Reporting on Financial Statements–the objectives of the auditor are
to form an opinion on the financial statements based on an evaluation of the
conclusions drawn from the audit evidence obtained and to express clearly that
opinion through a written report. In the final step of audit process the
auditor shall form an opinion on whether the financial statements are prepared,
in all material respects, in accordance with the applicable financial reporting
framework. The auditor shall modify the opinion in the auditor’s report when:
the audit or concludes that, based on the audit evidence obtained, the
financial statements as a whole are not free from material misstatement. This
study empirically examines distinctive financial indicators of qualified auditor’s reports in Turkey to see whether there is a relationship
between financial indicators and qualifications of an auditor’s report. The aim
of the paper is to analyze the qualified auditor’s reports of Borsa Istanbul
nonfinancial companies for the year 2016 and to show the circumstances in the
company’s financial position and performance that causes the qualifications by
using key performance indicators (accounting ratios). 

Keywords

Audit report, key performance indicators, Borsa Istanbul (BIST), Turkey

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