The accounting issues ,audit opinions and the relation between the audit opinions and the rotation of the auditor of the mutual funds

This study examines the Turkish mutual funds in terms of their accounting issues, converting or transition to TMS/TFRS (which is completely consistent to IFRS), auditing and audit firm/partner rotation. In this regard, primarily within the scope of TMS/TFRS, the guidelines of accounting practices and the financial statements which a mutual funds have to prepare are reviewed and further emphasized on external audit of mutual funds. As part of external auditing, audit firm or audit partner rotation are vital parts of audit quality concept. This study focuses on mutual funds audit firm/partner rotation decisions under modified audit opinions. First, in order to get information about what researchers had done over the past decades some emprical studies about causes of audit firm/partner rotation decisions are examined. As a consequence, 21 factors are determined from the literature review to effect the audit rotation process. "Receiving a modified audit opinion" factor is selected through the 21(twenty one) factors. Proceeding to the next step, an "audit scale" was composed to collect data. The scale consisted of 10 (ten) questions. Finally, this research provides information about what sort of audit opinions do mutual funds receive, with which audit firm do mutual funds work and do the audit firm or the audit partner rotated during the observation period in Turkey. Key Words: Turkey, mutual funds, mutual fund accounting issues,audit firms, audit firm/partner rotation