The Role of fraud risk assessment and fraud detection in the effectiveness of auditing and a study on authorized auditing firms by SPK in Turkey

An independent audit approves whether the financial statements of firms are correct and prepared in accordance with the general accepted accounting principles. Reliability of financial statements is an important factor for decisions about firms at stock exchange markets. Therefore, the independent audit plays an important role in these markets. Nowadays, frauds that take place in firms cause financial losses for firms, auditing companies, and other parties, while increasing of public attention about the reliability of financial statements. The independent auditor is an important actor in determining the reliability of financial statements. The role of the auditor requires examining by considering possible frauds at the customer firm. To prevent the audit firms losses due to possible frauds, the independent auditor considers fraud risk factors in conducting risk assessment. At the same time, he must also plan and perform the audit for detecting possible frauds. The consideration and detection of possible frauds in context of SAS No. 82 and No.99 are explored in this dissertation explores, as well as studying collaboration with internal auditors for this purpose from a theoretical perspective. The dissertation also examines whether the fraud risk assessment, fraud detection, and collaboration with the internal auditor plays a role in the effectiveness of auditing both from theoretical and empirical point of views.