The effect of corporate governance practices on audit quality a research on BIST-100 companies

Corporate governance is an in-house system used to maintain and control a business. The quality of the audit is the possibility of reporting a firm that is in the process of auditing, in the event of disclosure of material errors, inaccuracies, deficiencies or irregularities occurring in the accounting system, in a manner consistent with the requirements. Thus, in order to protect the trust and reputation of the companies, they should either improve the quality of audit or disseminate corporate governance practices. In this context, the effect of corporate governance practices on audit quality is investigated in the study. According to this purpose, data from the 2012-2016 years of 96 companies of different sectors traded in Borsa İstanbul BIST-100 index have been utilized. While as a dependent variable the audit quality and as independent variables the corporate governance practices were included in the research, for the evaluation of the audit quality the size of the audit firm was preferred as an indicator. Binary Logistic Regression analysis was used in the research of the relationship between the variables. As a result of the analyzes carried out separately for each year, it is observed that the effect of the corporate governance practices on the audit quality continues to increase every year. The highest percentage of classification with the data of the last year has made it the year that best describes the effect of independent variables in the model created on the audit quality in that year. The highest year of classification is the last year of the year, indicating that the quality of the audit is well understood. Keywords: Audit, Audit Quality, Corporate Governance, Borsa İstanbul, Logistic Regression