Independent audit, quality financial statements and analysis of the relationship between financial performance – the case of Turkey

Nowadays, financial statements are the most important sources for stakeholders. The quality of the financial statements prepared by the management of the entity is an indicator of the success. In order for the entity to prepare quality financial statements, it must first have a successful, transparent and fraud-free structure. To increase the quality of the audit, the formation of this system and the formation of high-quality financial statements is significant. Also, the auditor's full independence is crucial. As seen in the literature and industry, the obstacle to the independence of the auditor is the customer relationship between the auditor and the audited entity. In this study, Turkish practices regarding independent auditing were analyzed and suggestions were developed by taking into account both the literature and analysis. These suggestions claims a balanced and healthy audited entity and the auditing party relationship that should be established by an independent authority.