Financial audit of municipal economic enterprises

The various types of local needs and local services increase municipalities service burden thus they adopt various methods for presentation of services. Commonly used by municipalities, Municipality Economic Enterprises- shortly called as MEE- are a way of presentation. Municipality Economic Enterprises are established via municipalities' funds. And in general they are joint-stock company. Municipalities constitute these organizations with developing Municipality Economic Enterprises. Having the characteristics of public institution, municipalities use Municipality Economic Enterprises as a way to fulfill most of their obligatory community services. Therefore inspection of these units are important and have to be examined elaborately. At the first part of the study, the information about definition, structure, functioning, authority and influence of inspection on finance of local authorities and particularly municipalities as they considers Municipality Economic Enterprises in Turkey is given. At the second part , the information about short historical background of Municipality Economic Enterprises which contains how and when they appeared, description, shapes, classification, foundation and relationships with each other. At the last part of the study, economic auditing of these enterprises, which are founded by municipalities with the aim of submitting service, are examined.