The main objective of this study is to construct a model based on financial and non-financial variables to identify factors affecting audit opinions. To examine the usefulness of financial and non-financial variables in distinguishing between firms with an unqualified audit opinion and firms with an adverse audit opinion, the relationship that exists between independent variables and the type of audit opinion is investigated through logit model. The findings of empirical analysis shed light on the relationship between firm specific factors and the type of audit opinion. The results of logit analysis suggest that an unqualified audit opinion is issued for firms that have a higher liquidity, profitability, operational efficiency, growth rate, percentage of outside board members and low debt to total asset ratio. The results of empirical analysis demonstrate that financial and non-financial variables can be significantly useful in distinguishing between firms with an unqualified audit opinion and firms with an adverse audit opinion. Additionally, the inclusion of non-financial variables, age and the percentage of outside board members, significantly improves the performance of empirical model.   Keywords: Audit opinion, Financial and non-financial variables, Going- concern assumptionJEL: M40, M41

The financial performance of the firms is one of the major concerns for the users of financial

A b s t r a c tEarnings management is one of the controversial issues in the current business environment. The value relevance of earnings is adversely influenced by earnings management. The objective of this study is to analyze the association between audit quality and earnings management for non-financial firms quoted on Borsa Istanbul. Ordinary least square regression analysis is employed in this study in analyzing the association between earnings management and audit quality. Three different proxies for audit quality (auditor independence, audit industry specialization and auditor tenure) were analyzed based on a sample of 97 nonfinancial firms quoted on Borsa Istanbul from 2013 to 2018. Empirical analysis indicates that auditor independence and audit industry specialization are significantly negatively related with likelihood of earnings management and long-term auditor and client relationship enables the management of firms to more actively engage in earnings management. This paper finds support for the notion that the high-quality audit is one of the prominent factors that can mitigate earnings management practices.Kazanç yönetimi iş dünyasında en fazla tartışılan konular arasındadır. Kazançların değer ilgililiği kazanç yönetiminden olumsuz olarak etkilenmektedir. Bu çalışmanın amacı, denetim kalitesi ve kazanç yönetimi arasındaki ilişkiyi Borsa İstanbul'a kote olan şirketler açısından analiz etmektir. Denetim kalitesi ve kazanç yönetimi arasındaki ilişki sıradan en küçük kareler yöntemi kullanılarak analiz edilmektedir. 2013-2018 yıllarını kapsayan ve Borsa İstanbul'a kote olan 97 reel sektör firmasının verilerinden yararlanarak denetim kalitesinin üç göstergesi (denetçi bağımsızlığı, denetçinin sektörel uzmanlığı ve denetim firmasının müşteri firmaya hizmet süresi) sıradan en küçük kareler yöntemi kullanılarak analiz edilmektedir. Sıradan en küçük kareler yönteminin sonuçlarına göre; denetçi bağımsızlığı ve denetçinin sektörel uzmanlığı kazanç yönetimini önemli derecede azaltmaktadır ve denetim firması ile müşteri firma arasındaki uzun süreli ilişki, müşteri firmanın daha yoğun bir şekilde kazanç yönetimini uygulamasına yol açmaktadır. Bunlara ek olarak, bağımsız denetiminin kalitesinin yüksek olması firmaların kazanç yönetimi uygulamalarını önemli derecede azaltmaktadır.

Sustainability reporting is one of the latest trends that shape corporate reporting practices in the current business climate. With the advent of globalization, firms have begun to report environmental, ethical, social responsibility and human resource policies. Non-financial information that can enhance the quality of investment decisions is disclosed in sustainability reports. This paper aims to analyze the association between sustainability reporting and corporate attributes using a sample that includes 106 firms operating in Turkey. Using pooled cross-sectional logistic regression analysis, the empirical findings reveal that firm size, profitability, leverage, board independency and industry membership are important corporate attributes affecting the decision to issue sustainability report. The empirical findings of this paper are expected to provide valuable insights regarding sustainability reporting practices for stakeholders.

This paper aims to investigate the factors affecting key audit matters disclosed by manufacturing firms listed on Borsa Istanbul for the accounting period of 2019. Data are collected from the audited financial statements of 164 manufacturing firms listed on Borsa Istanbul and Poisson regression analysis is applied to the empirical model. The results of regression analysis indicate that non-Big 4 auditors disclose more key audit matters and firm complexity considerably increases the number of key audit matters. A statistically insignificant relationship between the disclosure of key audit matters and audit opinion was found. This paper is expected to contribute to the limited literature by adding important findings on another perspective of key audit matters.

The objective of this paper is to analyze the impacts of audit committee on firm value. Employing panel data on a sample that consists of 141 manufacturing firms whose shares are traded on Borsa Istanbul during the period between 2011 and 2019, this paper found that the inclusion of audit committee members with accounting and finance background, audit committee size and the number of audit committee meetings positively influence firm value. This paper demonstrates that the value of manufacturing firms listed on Borsa Istanbul is significantly affected by audit committee characteristics. In the context of emerging economies, this paper offers new perspectives on the association between firm value and audit committee. The results of empirical analysis also provide important implications for policymakers, creditors and shareholders.

In the current business environment, the costing system used within the firms has prominent impact on strategic decisions. High-quality cost data significantly increases the quality of firms' strategic decisions. The activity-based costing system has failed to satisfy the needs of firms operating in the competitive economic environment. The time-driven activity-based costing system is the developed version of activity-based costing system. Time-driven activity-based costing system is one of the most sophisticated costing systems that enable firms to accurately calculate the cost of goods and services. Time-equations are used in time-driven activity-based costing system to estimate the time consumed by each activity. This chapter aims to discuss main dynamics of time-driven activity-based costing system and provides an illustration of this costing system in the manufacturing industry. The case study demonstrates that time-driven activity-based costing system is useful in calculating idle capacity cost.

The advent of rapid technological change and globalization has prominently decreased the ability of traditional methods to deal with financial information manipulation. Forensic accounting has brought a contemporary approach to the investigation of financial information manipulation. Financial market participants expect that future demand for forensic accountants will significantly increase in the business environment. Forensic accounting applications have grabbed significant attention in the recent years due to its effectiveness in the investigation of financial information manipulation. Forensic accounting includes a wide range of activities such as litigation support, expert witness and fraud investigation. Past experiences have proved that forensic accounting practices play a pivotal role in the detection and deterrence of financial information manipulation. In this study, Mann-Whitney U test is employed to test differences between financial statement variables of non-manipulator and manipulator firms. The results of Mann-Whitney U test reveal that current ratio, net working capital, return on assets, return on equity, profit margin, and size of non-manipulator firms is higher than those of manipulator firms. This study also aims to investigate the impacts of forensic accounting on the detection of financial information manipulation in the current business environment. The dynamics of forensic accounting are discussed. The methods used by forensic accountants to detect financial information manipulation are presented.