Role of independent audit on reliability of financial reporting: An application

It is obvious that public opinion towards financial reporting has been distrusted by the financial scandals especially after 1990s like Enron, WorldCom. One could argue organizational administration failures as the reason of financial reporting scandals. Especially the users of financial tables have been distrusted by the financial tables of which prepared by company administrations and passed the control of independent comptrollers. From this point of view, many new approaches and regulations about organizational administration were developed in many countries, especially U.SA, for rebuilding and developing the trust against financial tables. A large range of these regulations were also adopted and reinforced with legal regulations by Turkey.The purpose of this study is to introduce the relation between reliability perceptions of financial tables and these new regulations about independent audit, one of corporate governance mechanisms. We tried to examine this relationship in light of source reliability theory.