An analysis of factors influencing audit opinion: A research on campanies listed on BİST

Prior studies indicate that the auditee firm characteristics, the financial statement variables and the independent audit firm characteristics have an effect on the independent audit opinion. The studies indicating the impact of income statistics of independent audit firms on independent audit opinion, however, were mostly performed in developed countries, such as the US and the EU member states. The validity of the debate in developing countries such as Turkey are being investigated. This study, which intends to contribute the above arguments on the literature by focusing on Turkish case, aims to investigate the impact of the auditee firm characteristics, the financial statement variables and the independent audit firm characteristics on independent audit opinion. This study, using client size, prior audit opinion and change in net profit as proxy for auditee firm characteristics; asset growth, net sales growth, asset turnover ratio, debt to total assets, return on assets, return on equity, profit margin, acid-test ratio and current ratio as proxy for financial statement variables; audit firm size, independent audit revenue and non-audit revenue as proxy for audit firm characteristics, analysed the impact of factors influencing audit opinion by using Logistic Regression Analysis, based on data gathered from 1035 firm/years listed on the BIST industry and service sector for the period between 2013 ¬- 2017. The results of the analysis conducted in the industrial sector indicate that prior period qualified opinion is positively effective on the same opinion in the following period. Also, the results suggest that a qualified opinion is issued for firms that have a lower net sales growth, asset turnover ratio, return on assets and acid-test ratio. The results of the analysis conducted in the service sector indicate that prior period qualified opinion is positively effective on the same opinion in the following period. In addition, the results suggest that a qualified opinion is issued for firms that have a negative profit change in the current year. Also, the results show that the possibility of issued a qualified opinion by audit firms that have a higher non-audit revenue is lower.