DENETİM

Information risk reflects the possibility of making mistakes in decisions to be taken regarding the business.

Causes of information risk:
• Being far from the information
• Bias of the information provider
• Large volume data
• Complex accounting operations

There may be conflict of interest between the users of the financial statements and the company managers
responsible for the preparation of the financial statements.

The benefits of independent audit can be listed as follows;
1. Provides correct flow of information to management.
2. Helps the management to make predictions and analyses regarding the financial statements and to
make healthy future decisions.

3. Indicates whether the financial statements
reflect the truth.
4. Helps business management and employees
to prevent cheating.

The concept of audit is confused with various concepts such as Control, Inspection and Revision.
Before defining the concept of audit, let’s define the concepts that lead to this confusion.
“Control is the beginning of the audit or the activity that precedes the audit. The measures taken to
achieve the objectives are a control activity.” Certain measures are taken to make sure that something turns
out as desired or to achieve a certain goal.

The subject of independent audit is financial statements and footnotes prepared by the company.

There are three important elements to be noted
in this definition. The first of these is that the
independent audit is based on predetermined
criteria. These criteria are Generally Accepted
Accounting Principles and Concepts (GAAP) and
Turkey Accounting Standards (TAS), according to
which the auditors will evaluate the information.

a. Types of Audit by Reason
The types of audit are divided into two according
to the reasons for their execution; compulsory
audit and optional audit.

Compulsory Audit is also known as Legal Audit

Internal auditors 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.

The term auditor was first used in 1289.

The “Systems Based Audit Approach”, which has come from the 1930s until today and is based on the examination of the internal control structure of the enterprises.

Causes of information risk are:

Owners, Shareholders, Management, & Employees are internal information users.

Investors, Creditors, Government, Customers & Suppliers are external information users.

Optional (Supervisory Audit): It is an audit made by companies or organizations of their own accord without any legal obligation.

Another name for Internal Audit is Performance Audit or Operational Audit.

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

Public Audir or 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. In compliance audit, it is checked whether the rules determined by an authority are complied with.