The effect of independent audit on financial markets (An evaluation in terms lagislation)

Auditing is an examination of the compliance of any activity with predetermined standards. When it comes to auditing, both business and non-business purposes come to mind. Businesses can control their own activities with their employees, as well as external audits to ensure that they provide accurate, complete and neutral information to third parties and institutions. One of the most important factors affecting the quality of the external audit is undoubtedly the independence of the auditor. In cases where the auditor is not independent, the financial statements may be wrong and fraudulent. This damages the trust of stakeholders to financial statements. In the 2000s, the subject of independent auditing became the focus of interest all over the world, especially in the USA and the EU, and efforts were made to set a standard for independent auditing through various regulations. The global financial crisis that shook the world in 2008 was due to the fact that many investors and owners of capital hava tried to exploit the gaps they find in both accounting and auditing for their own benefit. In thid study, independency of auditing both in Turkey and EU was emphasized in the context of legislation before and after crisis. In the European Union, these regulations are provided by the Directive and in our country by the Independent Audit Regulation under the supervision of the Public Oversight Authority. In this study, the differences between the European Union and Turkey's audit legislation have been examined.