Industrial specialization as a factor enhancing audit quality and auditor perceptions about this factor

The purposes of this study are; to conduct a literature survey on industrial specialization which is considered to be one of the factors that affects the quality of risk assessments during the audit procedure as well as the audit report, to measure the perceptions of auditors about the importance of this factor and compare the measurements with the results of past researches, and finally to understand whether or not the audit companies have undergone procedures regarding industrial specialization for the auditing of SMEs after the new Turkish Commercial Code, Act No. 6102. In this respect, the first part of the research includes the analysis of concepts through the audit standards and part researches, information about the regulations of new Turkish Commercial Law on auditing, and discussion of the problems which are exposed in the methodology section. A questionnaire survey has been conducted with 59 independent auditors in order to receive their interpretations about industrial specialization and the position of this concept in audit companies after the new Turkish Commercial Code, Act No. 6102. As a result of the survey, it is found out that the auditors perceive the industrial specialization and the personnel qualities (education, experience, etc.) as the most important factors affecting the audit quality. Additionally, the results indicate that although the auditors regard the necessity of industrial specialization or ?SME specialization? for the audit of SMEs, the audit companies seem not to undergo such a change or support their employees by educations or training activities about the Turkish Commercial Code, Act No.6102.