The impact of corporate governance on audit quality: A research at the BIST

A strong relationship is expected between corporate governance and audit quality. Because one of the purposes of both is to increase the level of credibility to the market. The need for developing strong governance structures has led many researchers to examine the new framework of corporate governance and to explore its relationship to the audit quality. In this paper, the effect of corporate governance practices on audit quality is researched. For this aim, two different technic method are used. First method is, obtaining the data from questionnaires applied to the 100 index companies in the Borsa Istanbul. The survey questions are originated from other's work in the literature. Firstly, t test and anova test applied to the survey results then the relation between audit quality sizes and corporate governance practices are examined by correlation analysis method and regression method. As a result of analyzes, it has been observed that board of director size, board of directors independence, ownership concentration, (the corporate governance principles) fairness and equality and social responsibility affect audit quality positively. Afterwards, regression analysis was applied but no significant results could be obtained and a second analysis is needed. Second method is, the dataset of the 100 index companies in the Borsa İstanbul 2019, has been used. While the audit quality is determined as a dependant variable, the corporate governance practices are determined as an independant variable. The variables used were gained from the companies' corporate web sites. The variables are; the number of board members, duality, the number of independant member and ownership structure. The regression analysis was used to determine the relationship between the dependant and independant variables.