International auditing standards 701: Analysis of the impact on BIST-100 companies with content analysis

Companies must exhibit resilience against economic fluctuations in both local and global markets, as well as the adverse impacts of these fluctuations. This necessity has propelled them to develop systematic measures. In this context, to preclude financial difficulties, innovations have been introduced in audit processes. These innovations have necessitated the provision of clear, comprehensible, and relevant information to investors and other stakeholders through independent audit reports. With the enactment of the Independent Auditing Standard (IAS) 701 - Key Audit Matters(KAM) in Turkey, independent auditors have assumed the responsibility of reporting these matters in a distinct and straightforward manner in their reports. The current research scrutinizes the audit reports of companies listed in the Borsa Istanbul 100 (BIST-100) index and systematically evaluates the Key Audit Matters reported therein through content analysis methodology. In the first section, the subject of auditing is mentioned, and in the next section, information about independent auditing is given. In the third part, detailed information was given about the independent audit report and the Key Audit Matter, and then the analysis part was started. While conducting content analysis, four different categories were determined. These; companies performing independent audits, the correlation of the determined KAMs, the transition between years and the sector in which the relevant company is located. As a result, it has been revealed that although there are similarities in the transitions between years in terms of the fact that KAMs are specific and simple to the business audited, they are unique in other categories.