An Evaluation of the independent external auditing in Turkey

XIV ABSTRACT Independent external audit is the process in which the financial statements of companies and information and documents as a basis of them, are examined by experts and impartial auditors to reveal whether they are accurate and fit to accounting principles and standarts, and whether they reflect the real financial state of the company, and by which the obtained results is announced to related parties by audit reports. Fast-growing of the companies due to developing and changing economic conditions has increased along with the need for reliable and accurate information. Increased necessity for reliable and accurate information has caused in turn gaining importance of independent external audit and made this concept a very significant requirement. In our country on the way of European Union, independent external audit has not yet a legal basis entirely. Some regulations has been made in SPK Legislation and Law No. 3568 concerning to the independent external audit in Turkey. However, when they are compared to General Accepted Auditing Standarts and EU Eighth Council Directive, deficiencies appear in several points. In addition, the lack of professional organisation related to auditing is also one of the main reasons for the less-developed structure of independent external audit in our country.