MANDATORY ROTATION WITHIN THE SCOPE OF EU AUDIT REFORM; MANDATORY ROTATION APPLICATIONS OF MEMBER STATES

Authors

  • Neriman YALÇIN Öğr. Gör. Dr., Osmaniye Korkut Ata Üniversitesi

Keywords:

EU Audit Reform, Independent Audit Quality, Mandatory Audit Firm Rotatio, Mandatory Audit Rotation

Abstract

Financial scandals that emerged in the early part of the twenty-first century caused to be lost the confidence in independent audit activities and quality of the independent audit. A number of precautions have been taken in conducting independent audit function by legislation works 1Bu makale, Doç. Dr. Alpaslan YAŞAR danışmanlığında hazırlanan “Zorunlu Denetim Firması Rotasyonunun Bağımsız Denetim Kalitesine Etkisi: Borsa İstanbul’da Bir Uygulama” başlıklı Doktora Tezinden faydalanılarak hazırlanmış ayrıca 8-10 Mart 2019 tarihleri arasında Adana ilinde gerçekleştirilen “3.Uluslararası İKSAD Sosyal Bilimler Kongresi’nde bildiri olarak sunulmuş ve eleştirilere uygun olarak geliştirilmiştir.2This paper was prepared by benefiting from doctoral thesis called ‘The Effect of Mandatory Audit Firm Rotation on Independent Audit Quality: An Application in Istanbul Stock Exchange’ that was written under the counseling of Assist. Prof. Alpaslan YAŞAR. Moreover, related paper was submitted as a declaration in ‘3rd International IKSAD Social Sciences Congress’ in Adana Province in March 8-10, 2019. It was also developed based on critiques.in the European Community as from 2006 and Sarbanes Oxley Act (SOX) in the USA in 2002 to reinstate and sustain the trust in question. “Green Paper” that was published in 2010 because of avoiding repetition of financial crises of the European Commission started discussions about independent audit quality again. It was endeavored to establish a Europe with common legislation in an audit by accepting June 17, 2014, dated and 537/2014 numbered legislation at the end of three-years regulation works as from 2011. Several measures have been considered by related regulation to provide independent audit quality.“Mandatory rotation in independent audit” is the most remarkable and contradictive measure suggested to provide and sustain independent audit quality by both SOX and EU arrangements. Transition time was given to member countries to the financial year following June 17, 2016, for common mandatory rotation application; there were observed arguments and application differences about rotation in member countries in question.The goal of this study was to reveal how mandatory rotation that started as from 2016 takes place in regulations of member countries besides submitting the results of studies about mandatory rotation in EU member countries. For that purpose, the current situation in mandatory rotation application of EU was shown by reviewing academic studies and mandatory rotation arrangements of 28 member countries.

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Published

2019-03-25

How to Cite

YALÇIN, N. (2019). MANDATORY ROTATION WITHIN THE SCOPE OF EU AUDIT REFORM; MANDATORY ROTATION APPLICATIONS OF MEMBER STATES. EUROASIA JOURNAL OF SOCIAL SCIENCES & HUMANITIES, 6(7), 180–196. Retrieved from https://www.euroasiajournal.com/index.php/eurssh/article/view/198

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