Examination of independent audit reports within the scope of business continuity (ISA 570) and reporting key audit matters (ISA 701) Standards: A study

The audit scandals that occurred in the early 2000s, along with the economic crisis, had a negative impact on the entire world. Independent audit activities were also affected by this unfavorable situation. Trust in financial statements decreased as a because of financial crises and audit scandals. Due to audit scandals and financial crises, independent audit activities began to be questioned. Stakeholders and financial statement user started to demand more detailed and comprehensive information about the independent audit activity and financial statements. The purpose of independent audit activities is to prevent incomplete information to financial statement users and stakeholders, and to inform them accurately. Thus, it will ensure that financial statement users and stakeholders make informed decisions accurately. In this regard, in our country, the Public Oversight Accounting and Auditing Standards Authority publishes standards on relevant issues to increase the reliability of independent audit reports. The subject of this study is BDS 570 and 701 standards. According to BDS 570, the auditor's responsibilities include obtaining sufficient and appropriate audit evidence regarding management's use of the business continuity principle in the preparation of financial statements and reaching a conclusion on the appropriateness of management's use of this principle and whether there is a significant uncertainty regarding the entity's ability to continue as a going concern based on the audit evidence obtained. According to BDS 701, key audit matters are the matters of most significance in the audit of the financial statements for the current period, as determined by the auditor's professional judgment. Key audit matters are selected from matters communicated with those charged with governance. The aim of the study is to determine the relationship between BDS 570 and 701 and to present the current situation within the framework of the relevant standards. The method of the research is content analysis, which is one of the scientific research methods. It is concluded that the situation of negative net operating capital is a common issue for both BDS 570 and 701. Keywords: Independent Audit, Business Continuity, Key Audit Matters, BDS 570, BDS 701.