Financial and legal consequences of non-implementation of independent audit

Independent audit becomes a vital requirement as a result of worldwide's dynamic structure. Because of both increasing numbers of companies and complexity of accounting, independent audit is an indispensable part of the business. After lots of fraud, fault and big falses occurred in companies and corporations, independent audit turned into a guidance for corporations and companies. Unless taking into account an independent audit procedure in the companies and corporations, this situation will be risky and be threatening not only for these companies but also for related ones. In the past, there were lots of company malpractices which globally affected the business life and as a result, too many companies almost bankrupted. Doing an independent audit periodically is directly proportional to the success of the company vision for the continuity. As a result of the inability on detection for fraud and fault, independent audit procedure which is coherent not only with Turkey Audit Standard but also with International Audit Standards. Despite the fact that companies which meet the Council of Ministers' criteria for an independent audit procedure have risky legal and financial situation if they do not do an independent audit periodically. Keywords: Independent Audit, International Financial Reporting Standards