International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

REGULATIONS ON FRAUD AUDIT IN PUBLICLY-HELD COMPANIES: A COMPARATIVE STUDY ON THE TURKISH AND US CAPITAL MARKETS
Mehmet ERKAN, Nuray DEMIREL ARICI

ABSTRACT
Financial statements that represent the financial and operational results of a business are the main sources when taking an investment, credit or another decision about that business. If the financial statements do not reflect the real scene, any decisions taken by anyone will be ineffective and factors will be allocated inefficiently. It is needless to say that right decisions depend on relevant, understandable and reliable financial statements. But the high profile accounting and auditing scandals experienced particularly in the 2000s cost a great deal of money and broke the reliability of financial information. This scene addresses countries to make new regulations and/or develop existing ones including International Accounting and Financial Reporting Standards (IAS/IFRS), International Standards on Auditing (ISA), and International Standard on Review Engagements (ISRE) in order to increase the reliability. The aim of this study is to clarify fraud concept and compare the regulations on fraud audit in publicly-held companies in the Turkish and US Capital Markets.

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