Development of independent audit and implication over an assessment of VUK, TFRS, and BOBI FRS for a manufacturing company

With the increasing world population, the acceleration of trade opportunities thanks to technology has created a significant expansion in the world trade volume. Recording, classifying, summarizing, and interpreting commercial business and transactions has become easier by using accounting programs. Following these developments, the need to establish a common valid financial reporting system has arisen for the accounting and auditing of increasing commercial business and transactions all over the world. Countries, considering their economic conditions, try to adopt International Accounting Standards and International Financial Reporting Standards to their economic systems. In line with this purpose, significant steps have been taken to transition to the Valid International Financial Reporting System, especially for the past decade in Turkey. As a result of these advancements, Turkey's Financial Reporting System (TFRS) and Financial Reporting System for Large and Medium-Sized Businesses (BOB FRS) have come out in the financial reporting system. However, Companies pay their taxes on the net income accrued by preparing their financial statements following the Tax Procedure Law (VUK). Therefore, the current period net income of enterprises differs significantly from the current financial reporting system they apply. In the case of applying VUK, TFRS, or BOBI FRS, all of which are common financial reporting systems in Turkey, by a Company that is running in the manufacturing industry, how current period net income differs and causes of change are dealt with by this thesis. TFRS is a better financial reporting system for the companies which are running in the manufacturing industry in terms of showing fair values and maximizing company value. Keywords: Independent Audit, VUK, TFRS, BOBI FRS