Independent audit quality impact on financial performance: BİST-over 100 companies research

Corporate accounting scandals experienced in developed countries have led to the problem of social and economic trust. The developments have revealed that the opinions of independent auditors are open to manipulation and that quality factor in auditing is important. It is expected that it will contribute positively to the financial performance of the company along with a quality audit and assurance that the financial statements do not contain significant errors or inaccuracies. The purpose of this study is to investigate whether there is a relationship between independent audit quality and financial performance of companies included in the stock exchange Istanbul (BIST) 100 index. The audit committee shall review and discuss with management and the independent auditor any significant changes in the company's financial statements, including any significant changes in the company's financial statements, and any significant changes in the company's financial statements. Financial performance, which is dependent variable, is calculated by establishing three different models with three different variables: active profitability ratio, equity capital profitability ratio and Tobin Q Ratio. The models also used the size and leverage ratio variables as control variables. In this study, 480 business/Year Data panel data from 96 companies, registered to bistro-100, was tested between 2012-2016. As a result of the analyses, it was determined that there was a statistically significant and positive relationship between the size of independent audit firms and the rate of active profitability. In addition, it has been determined that there are statistically significant correlations between the active profitability ratio and the company size and leverage ratio of the companies.