Abstract
Transparency may improve audit quality. In order to increase transparency of audit firms, regulators require audit firms to issue a transparency report. In this regard, the Eighth EU Directive requires audit firms to publish annual transparency reports. In Turkey Independent Audit By-Law has requirements similar to those contained in Article 40 of the EU Directive. The paper examines contents of 2017 transparency reports of audit firms in Turkey. The paper assesses the level of audit firms compliance with requirements of transparent reporting set by the By-Law. The sample of the study consists of 88 transparency reports of audit firms that conducted audit of public interest entities (PIEs) in 2016 in Turkey. Keywords: Transparency report, audit firms, Turkey, KGK DOI : 10.7176/RJFA/10-8-22 Publication date : April 30 th 2019
Highlights
In the aftermath of corporate scandals in the beginning of the twenty-first century audit quality has become a top priority for regulators
The sample of the study consists of transparency reports of audit firms that conducted audit of public interest entities (PIEs) in 2016 in Turkey
The results show that the transparency report delay is shorter when audit firms have a greater number of certified auditors
Summary
In the aftermath of corporate scandals in the beginning of the twenty-first century audit quality has become a top priority for regulators. Regulators argue that greater transparency of audit firms’ internal governance helps to reduce information asymmetry between audit firms and market participants, maintain high-quality audit service and, maintain the stability of the capital market (Deumes, Schelleman & Vanstraelen, 2012). The Eighth EU Directive requires statutory auditors and audit firms to publish annual transparency reports. This paper analyses content of 2017 transparency reports of audit firms in Turkey. The paper assesses the level of audit firm compliance with requirements of transparent reporting set by the By-Law. The sample of the study consists of transparency reports of audit firms that conducted audit of public interest entities (PIEs) in 2016 in Turkey. The third section make explanations about international legislations regarding transparency of audit firms. The fourth section describes emprical findings concerning analysis of content of the transparency reports.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
