Research Information System
IV. International Conference On Applied Economics and Finance, Aydın, Turkey, 28 November 2018 - 30 January 2019, pp.47, (Summary Text)
Key Audit Matters (KAM) as those matters that, in the auditor's professional judgment, were of most significance in the audit of the financial statements of the current period. As required by ISA 701 “Communicating Key Audit Matters in The Independent Auditor’s Report”, a new audit standard, the key audit matters should be presented in independent auditor reports. By the regulation, the auditor's reports are expected to become companyspecific and increase communication value of independent auditor’s reports. In Turkey, Public Oversight Accounting and Auditing Standards Authority put into effect the standard from the date of 1.1.2017. The purpose of the study is to reveal the current situation of Key Audit Matters (the sub-heading of KAM, number of KAM, report order of KAM, presentation type of financial statements, etc.) presented in independent auditor's reports of manufacturing sector companies quoted in Borsa Istanbul (BIST) according to the industries and audit firms by frequency analysis. For the purpose, the KAM were examined in the independent auditor's reports of the 2017 reporting period of all companies (177 companies) in the manufacturing sector. The most common KAM are determined as revenue, trade receivables, tangible assets and inventories respectively. Revenue has emerged as the only issue that takes place in all presentation order of KAM. The average number of KAM is 1,9 in the sector. The highest number of reported KAM in the sector is 6. The industry with the highest average number of KAM is basic metal industry; the lowest one is food, beverage and tobacco. When the number of KAM reported analyzed according to the audit firms it is revealed that, Big 4 audit firms reported less KAM than other audit firms. While the number of presentations related to the subheading of each determined KAM (%) and the order of priority in the presentation of the KAM subheading differ according to the industries, it is determined that generally revenue was the first KAM in the all industries. The study is important in terms of determining critical issues in the manufacturing sector as well as in the industries in the sector