Auditing of accounting estimates and an application

The purpose of this study is to determine the ratio of the items requiring accounting estimates in the reported key audit matters and to analyze the relationship between Altman Z" score model and reported key audit matters. In this regard, in the research and companies that traded in the BIST 100 index were analyzed using the content analysis method. Since the inclusion of key audit matters in independent audit reports came with the standard "BDS 701: Declaring Key Audit Matters in the Independent Auditor's Report" published in 2017, the companies' data included in the research cover the years 2017-2020. As a result of the analysis, the items that require accounting estimates, which have risks and uncertainties by their nature, constitute the majority of key audit matters. In addition, as the number of reported key audit matters increased, it was determined that businesses approached the gray zone and financial failure according to the Altman Z" score model. This situation reveals that there is a positive relationship between the number of key audit matters and financial failure.