Audit Environment

The first organization of accounting auditors was established in Venice in 1581.

1. Choosing between economic resources
2. Measure the success of using economic resources.

It means the possibility of making mistakes in decisions to be taken regarding the business

1) Bein far from the information, 2) Bias of the information provider 3) large volüme data 4)Complex accounting operations

1) Conflict of interest, 2) Complexity of accounting information, 3) Accounting information and business decision, 4) Increasing the need for accurate and reliable information, 5) Increase in the number of information users, 6) Lack of time and financial information, 7) Legal obligations,

1) Provides correct flow of information to management, 2) Helps the management to make predictions and analyses regarding the financial statement and to make a healthy future decision,3) Indicates whether the financial statements reflect the truth,4) Helps business management and employees to prevent cheating, 5) With the independently audited financial statement, it becomes easier fort he enterprise to find low financial cost financing, 6) The rights of all partners are better protected in a company that undergoes an independent external audit. 

Independent audit is the independent examination of financial information of an entity, whether profit-oriented or not, and irrespective of its size, or legal form when such as an examination is conducted to express an opinion.

1) Independent audit, 2)Compliance audit, 3) Internal audit

1) Compulsory, 2) Optional

Public companies, intermediary companies, banks, insurance companies, companies operating in the energy markets in our country are obliged to have compulsory accounting audits.

The optional audit is an audit made by companies or organizations of their own Accord without any legal obligation.

A compliance audit is carried out in order to determine whether the activities or transactions of the enterprises comply with certain methods and rules and the relevant legislation.

The purpose of an internal audit is to evaluate the efficiency and effectiveness of the activities of the enterprises.

Supervisory Audit

Public sector audit

An auditor is an expert who carries out the audit activity, has Professional knowledge and experience, can act independently, and has high ethic qualities.

1) Carrying on audit activities, 2) Sufficient Professional knowledge and experience, 3) Necessary moral qualities, 4) Showing enough care to their work, 5) Acting independently

1) Independent auditors, 2) Internal auditors, 3) Public sector auditors

Public Sector Auditors are auditors who work in the audit (inspection) unit of various public institutions, carry out audits on behalf of the state and submit the audit report to the public unit to which they are affliated, e.g. Auditor of the Court of Accounts, Finance Inspectors.

Internal auditors are the auditors who are included in the organization chart of the organization they are affiliated with and operate directly under the board of directors or under the general manager. Today, internal auditors spend a signifficant amount of their time on activity audits because the intense competition conditions prevailing in today’s business environment force businesses to work more effciently.