Internal auditting in banks and practices in Turkey

In a country a weak financial system can threaten the national and international stability. The main factors that effect economy are the increase of globalization tendency and capital movements all over the world. With these developments the dimension and importance of the risks in the financial system has rised. İn this study we have specially dwelled on the active supervision and auditting in banks which are the most important associations of the financial systems.In the first part of the study we have described the auditting concept, the auditting types and the auditting standards. However in the second part internal control, internal auditting systems and effectiveness of the princeples of internal auditting systems have been explained. In the third part internal auditing, relating to basic princeples of effective supervision and auditting in banking have been examined. And in the last part of the study existing problems in the Turkish Banking Sector and enterance of internal auditting system into the Turkish Banking Sector and applications about this subject have been explained.In the recent years internal auditting activity which has been intensively used by private sector instutions has become the inseperable part of public internal financial control systems. In the study, banks which are one of the primary sectors that has an influence on economy, in order to provide accountcy for and financial tranparence, the obligation to construct an effective internal auditting systems importance and reasons have been explained.