Abstract
Litigation Risk, Auditor Conservatism and An Overview of Turkey Characteristic
Highlights
Those falling into disagreement will have to make some decisions during the settlement of the dispute
Decision analysis or risk analysis is a systematic approach to making the right decision
The concept of risk society theory, which has emerged in relation to advanced capitalism in the developed countries of North America and Europe, is based on the assumption that the generation will be even worse, especially in times of economic crisis, since people cannot survive in prosperity
Summary
Those falling into disagreement will have to make some decisions during the settlement of the dispute. The auditor's conservatism is an approach that aims to provide more conservative supervision by foreseeing a high audit risk for the audited company's financial statement declarations, protecting the users of such financial information. If these financial information users are damaged due to the investment decisions they make, it is probable that a court action against the auditor's opinion is filed For this reason, the auditor will set a high audit risk for a possible inconsistency and will adopt a more conservative approach to avoid the risk of auditing failure of both the company and the financial information users and to choose the option that is safe against the risk of litigation in order to protect its own reputation. The consequences of the conservatism approach will be achieved by using the precautionary principle to protect the interests of the creditors and the capital
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