Evaluation of the audit of the municipal economic enterprises in Turkey in terms of effectiveness

Municipalities are considered to be the most important municipal local government in terms of meeting local public needs. Municipalities in our country are forced to make economic initiatives to fulfill this mission they are given. Economic initiatives of the municipality are called ?Municipal Economic Enterprises (BIT)?. The most common forms of BITs are municipal companies established in accordance with the provision of private law. Public resources used by municipalities must be used effectively and must be audited. Although BITs in Turkey use public resources in terms of capital structure, they are very flexible in effectiveness and audit activities. This flexible structure, in order to avoid controls, pushes the municipalities to establish companies.Economic enterprises of municipalities are considered as a method of privatization. However, rather than reducing activities of municipalities in the economic field, these companies are growing because of their advantages to the municipalities.The aim of present study is to evaluate how the controls of BITs ensure the effectiveness in the local public service delivery. On account of this fact, in the thesis the theoretical background of public services provided by local administrations has been given. After that, effectiveness of municipal services and BITs position in ensuring this effectiveness are studied. In the last part of the study, the existing auditing practices of BITs are put forward and then recommendations for how to regulate the audit of BITs that provide the effectiveness in services are given.