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COVID-19 IN AUDIT REPORTS: A STUDY ON THE EFFECTS OF BUSINESS AND AUDITOR CHARACTERISTICS

Year 2022, Volume: 24 Issue: COVID-19 Özel Sayısı, 30 - 52, 30.06.2022
https://doi.org/10.31460/mbdd.971511

Abstract

This study aims to determine which auditor or business characteristics are associated with the mention of COVID-19 in audit reports. In this context, 475 audit reports of the 2020 financial statements were examined, and reports that mentioned COVID-19 in key audit matters, the emphasis of matter, or other matters paragraphs were identified. As a result of the logistic regression analysis, it was determined that COVID-19 was mentioned more in the audit reports of the larger firms, firms in the sustainability index or the manufacturing sector, and the audits carried out by the Big 4. On the other hand, the gender of the auditor, indexing in the corporate governance index, and the profit of the enterprise are the variables whose effect cannot be determined. The study's findings are significant in that they shed light on several elements influencing the auditor's decision-making process and assess whether the explanation paragraphs are effective preventing the uniformity of the audit reports.

References

  • Abdullatif, M. and Al-Rahahleh, A. S. (2020). Applying a New Audit Regulation: Reporting Key Audit Matters in Jordan, International Journal of Audit, 24, 268– 291.
  • Acar Uğurlu, Y. and Sarısoy, Ö. (2021). COVID-19 Pandemisinin Bağımsız Denetime Etkileri: Bağımsız Denetçi Görüşlerinin İncelenmesi, Muhasebe Enstitüsü Dergisi, 65, 39-58.
  • Adana, B. A. and Özbirecikli, M. (2020). Bağımsız Denetim Sürecinin Covid-19 Salgınının Etkileri Açısından Değerlendirilmesi, İşletme Araştırmaları Dergisi, 12(2), 2080- 2093. Doi: 10.20491/isarder.2020.963.
  • Albitar, K., Gerged, A. M., Hassan, K., and Hussainey, K. (2021). Auditing in Times of Social Distancing: The Effect of COVID-19 on Auditing Quality, International Journal of Accounting & Information Management, 29(1), 169-178. https://doi.org/10.1108/IJAIM-08-2020-0128.
  • AuditAnaytics Report. (2020). COVID-19 Impacts on European Audit Opinions. Retrieved January 20, 2021from https://blog.auditanalytics.com/covid-19-impacts-on-european-audit-opinions/ .
  • Başkan, T. D. (2020). Analyzing the Going Concern Uncertainty During the Period of Covid-19 Pandemic in Terms of Independent Auditor's Reports, ISPEC International Journal of Social Sciences & Humanities, 4(2), 28-42.
  • Bircan N. G. (2020). Belirsizlik ve Kriz Durumlarında Çevik Denetim Anlayışı ve Denetim Mesleği Üzerine Etkileri: Covid-19 Vakası Üzerine Bir Değerlendirme, Mali Çözüm, 30(161), 245-258.
  • Camargo, R. (2012). Determinantes dos pareceres dos auditores independentes emitidos às companhias negociadas na BM&FBOVESPA (Master’s Dissertation). Universidade Federal de Santa Catarina, Florianópolis.
  • Chartered Accountants Australia and New Zeland Report. (2020). Financial Reporting and Audit Guide: Financial reporting and audit issues stemming from COVID-19. Retrieved October 30, 2020, from https://www.charteredaccountantsanz.com/tools-and-resources/client-service-essentials/reporting/financial-reporting-and-audit-guide-financial-reporting-and-audit-issues-stemming-from-covid19
  • Deniz, F. (2021). Covid-19 Pandemisinin Sınırlı Bağımsız Denetim Raporları Üzerine Etkisi: Türk Bankacılık Sektörü Örneği, Akademik Sosyal Araştırmalar Dergisi, 9(114), 220-240.
  • Dohrer, B. (2020). How Auditors Can Test Inventory Without a Site Visit, Retrieved September 4, 2020, from https://www.journalofaccountancy.com/news/2020/mar/auditing-how-to-observe-inventory-during-coronavirus-pandemic.html
  • Dye, R. (1993). Auditing Standards, Legal Liability, and Auditor Wealth, The Journal of Political Economy, 101, 887-914.
  • Ferreira, C. and Morais, A. I. (2020). Analysis of the Relationship Between Company Characteristics and Key Audit Matters Disclosed, Revista Contabilidade & Finanças, 31(83), 262-274.
  • Hay, D., Shires, K. and Dyk, D. (2021). Auditing in the Time of COVID – The Impact of COVID-19 on Auditing in New Zealand and Subsequent Reforms, Pacific Accounting Review. Ahead-of-print. 10.1108/PAR-09-2020-0155.
  • Institute of Chartered Accountants in England and Wales (ICAEW) Report. (2020a). Coronavirus (COVID-19): Considerations for Inventory Audit Testing. Retrieved August 8, 2020, from https://www.icaew.com/technical/audit-and-assurance/audit/quality-control/coronavirus- considerations-for-inventory-audit-testing
  • Institute of Chartered Accountants in England and Wales (ICAEW) Report. (2020b). COVID-19 and How to Report an Emphasis of Matter. Retrieved August 8, 2020, from https://www.icaew.com/insights/viewpoints-on-the-news/2020/aug-2020/covid19-and-how-to-report-an-emphasis-of-matter#:~:text=An%20emphasis%20of%20matter%20paragraph%20refers %20to%20a%20matter%20presented,not%20modify%20the%20audit%20opinion.
  • International Federation of Accountants (IFAC) Report. (2020a). Auditor Reporting in the Current Evolving Environment due to Covid-19. Retrieved August 24, 2020, from https://www.ifac.org/system/files/publications/files/Staff-Alert-Auditor-Reporting-Final.pdf?utm_source=IFAC+Main+List&utm_campaign=87173fe1a0-EMAIL_CAMPAIGN_2018_11_15_07_08_COPY_01&utm_medium=email&utm_term=0_cc08d67019-87173fe1a0-80398665
  • International Federation of Accountants (IFAC) Report. (2020b). Summary of Covid-19 Audit Considerations. Retrieved August 24, 2020, from https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/summary-covid-19-audit-considerations
  • International Standards on Auditing (ISA). 501: Audit Evidence — Specific Considerations For Selected Items. Retrieved January 15, 2021, from https://www.ifac.org/system/files/downloads/a023-2010-iaasb-handbook-isa-501.pdf.
  • International Standards on Auditing (ISA). 701: Communicating Key Audit Matters in The Independent Auditor's Report. Retrieved January 15, 2021, from https://www.ifac.org/system/files/publications/files/ISA-701_2.pdf.
  • International Standards on Auditing (ISA) 706: Audit Evidence — Specific Considerations for Selected Items. Emphasis of Matter Paragraphs and Other Matter Paragraphs in The Independent Auditor's Report Retrieved January 15, 2021, from https://www.ifac.org/system/files/publications/files/ISA-706-Revised_0.pdf.
  • Karakaya, B. (2020). COVID-19 Pandemisi Döneminde Denetim Eğitimleri, Sayıştay Dergisi, 31(119), 157 - 166.
  • Karakoç, M. and Gündüz, M. (2021). Covid-19 Sürecinde Sınırlı Bağımsız Denetim ve BIST 100 Şirketleri Üzerine Bir Araştırma, OPUS International Journal of Society Researches, Pandemi Special Issue, 3568-3592. DOI: 10.26466/opus.895785
  • Karapınar, A. and Dölen, T. (2020). Bağımsız Denetim Raporlarında Kilit Denetim Konusu Açıklamaları: Türkiye Örneği, Muhasebe Bilim Dünyası Dergisi, 22(4), 763-780. https://doi.org/10.31460/mbdd.781322
  • Karataş, M. (2020). Covid-19’un Denetim Çalışmaları Üzerine Etkileri – Muhtemel Zorluklar ve Dikkat Edilmesi Gereken Hususlar. Retrieved January 15, 2021 from https://kovid19.turmob.org.tr/covid-19un-denetim-calismalari-uzerine-etkileri
  • Kavut, F. L. and Güngör, N. (2018). Bağımsız Denetimde Kilit Denetim Konuları: BİST-100 Şirketlerinin 2017 Yılı Analizi. Muhasebe Enstitüsü Dergisi, 16(59), 59-70.
  • KPMG Report. (2020). Communicating About Covid-19 Through The Auditor's Report. Retrieved October 20, 2020, from https://home.kpmg/nl/nl/home/insights/2020/06/communicating-about-covid-19-through-the-auditors-report.html
  • Merton, B. (2020). For Internal and External Auditors: 5 Steps to Implement Remote ISO/GMP Audits. Retrieved January 15, 2021, from https://www.unifize.com/how-to-do-a-remote-audit-during-covid-19/
  • Parlak, N. (2021). Covid-19’un Bağımsız Denetim Raporuna Ve Denetçinin Görüşüne Etkisi: BİST’te Bir Araştırma, Ardahan Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 3(1) , 34-41 .
  • Public Disclosure Platform. www.kap.org.tr
  • Public Oversight Accounting and Auditing Standards Authority (PO). Covid Salgınının Sürdürülen Bağımsız Denetimlere Etkisi, Retrieved June 24, 2020 from https://www.kgk.gov.tr/ContentAssignmentDetail/4659/COVID-19-Salgınının-Yurutulen-Bagımsız-Denetimlere-Etkisi .
  • Pricewaterhouse Coopers (PwC) Report. (2020). Accounting Implications of The Effects of Coronavirus. Retrieved December 15, 2020, from https://www.pwc.com/gx/en/services/audit-assurance/assets/accounting-implications-effects-coronavirus.pdf
  • Rashwan, A. R. M. S. and Alhelou, E. M. S. (2020). The Impact of Using Artificial Intelligence on the Accounting and Auditing Profession in Light of the Corona Pandemic, Journal of Advanced Research in Business Management and Accounting, 6(9), 97-122.
  • Selimoğlu S.K., Yeşilçelebi, G. and Altunel, M. (2021). Pandemi Krizi Döneminde Bağımsız Denetim İçin Yeni Bir Anlayış. Business & Management Studies: An International Journal, 9(2), 778-793.
  • The Association of Chartered Certified Accountants (ACCA) Report. (2020). The Impact of Covid-19 on Audit and Assurance – Challenges and Considerations. Retrieved August 30, 2020, from https://www.accaglobal.com/uk/en/cam/coronavirus/ukmembers-covid19.html
  • The Australian Auditing and Assurance Standards Board (AUASB Report). (2020). The Impact of Coronavirus on Financial Reporting and the Auditor's Considerations. Retrieved August 28, 2020, from https://www.auasb.gov.au/admin/file/content102/c3/AASB19009_COVID19_FA.pdf
  • The Institute of Chartered Accountants of India (ICAI) Report. (2020). Impact of Coronavirus on Financial Reporting and the Auditors Consideration, Retrieved September 15, 2020, from https://resource.cdn.icai.org/58829icai47941.pdf.
  • The International Auditing and Assurance Standards Board (IAASB). (2020). Auditor Reporting in the Current Evolving Environment Due to COVID 19. Retrieved August 24, 2020, from https://www.ifac.org/system/files/publications/files/Staff-Alert-Auditor-Reporting-Final.pdf
  • The International Financial Reporting Standards (IFRS) 16 – Leases. https://www.pwc.be/en/FY20/documents/covid-19-whitepaper-rethinking-internal-controls-for-pandemic-recovery.pdf Retrieved August 24, 2020

DENETİM RAPORLARINDAKİ COVID-19 AÇIKLAMALARI İLE İLİŞKİLİ FAKTÖRLER

Year 2022, Volume: 24 Issue: COVID-19 Özel Sayısı, 30 - 52, 30.06.2022
https://doi.org/10.31460/mbdd.971511

Abstract

Bu çalışmanın amacı denetim raporlarında COVID-19’dan bahsedilmesinin işletmenin ya da denetçinin hangi özellikleri ile ilişkili olduğunu tespit etmektir. Bu kapsamda 2020 finansal tablolarına ait 475 denetim raporu incelenerek, kilit denetim konularında, dikkat çeken hususlar ya da diğer hususlar paragraflarında COVID-19’dan bahsedilen raporlar tespit edilmiştir. Yapılan lojistik regresyon analizi sonucu sürdürülebilirlik endeksinde yer alan işletmelerde, denetim şirketinin 4 büyüklerden biri olması durumunda, firma büyüklüğü arttıkça ve imalat sektöründeki işletmelerin denetim raporlarında COVID-19’dan daha fazla bahsedildiği tespit edilmiştir. Denetçi cinsiyeti, kurumsallık endeksinde yer alma, işletmenin kârı ise etkisi tespit edilemeyen değişkenlerdir Çalışmanın bulguları, denetçinin karar verme sürecini etkileyen çeşitli unsurlara ışık tutması ve açıklama paragraflarının denetim raporlarını tekdüzelikten çıkarmada etkili olup olmadığını değerlendirmesi açısından önemlidir.

References

  • Abdullatif, M. and Al-Rahahleh, A. S. (2020). Applying a New Audit Regulation: Reporting Key Audit Matters in Jordan, International Journal of Audit, 24, 268– 291.
  • Acar Uğurlu, Y. and Sarısoy, Ö. (2021). COVID-19 Pandemisinin Bağımsız Denetime Etkileri: Bağımsız Denetçi Görüşlerinin İncelenmesi, Muhasebe Enstitüsü Dergisi, 65, 39-58.
  • Adana, B. A. and Özbirecikli, M. (2020). Bağımsız Denetim Sürecinin Covid-19 Salgınının Etkileri Açısından Değerlendirilmesi, İşletme Araştırmaları Dergisi, 12(2), 2080- 2093. Doi: 10.20491/isarder.2020.963.
  • Albitar, K., Gerged, A. M., Hassan, K., and Hussainey, K. (2021). Auditing in Times of Social Distancing: The Effect of COVID-19 on Auditing Quality, International Journal of Accounting & Information Management, 29(1), 169-178. https://doi.org/10.1108/IJAIM-08-2020-0128.
  • AuditAnaytics Report. (2020). COVID-19 Impacts on European Audit Opinions. Retrieved January 20, 2021from https://blog.auditanalytics.com/covid-19-impacts-on-european-audit-opinions/ .
  • Başkan, T. D. (2020). Analyzing the Going Concern Uncertainty During the Period of Covid-19 Pandemic in Terms of Independent Auditor's Reports, ISPEC International Journal of Social Sciences & Humanities, 4(2), 28-42.
  • Bircan N. G. (2020). Belirsizlik ve Kriz Durumlarında Çevik Denetim Anlayışı ve Denetim Mesleği Üzerine Etkileri: Covid-19 Vakası Üzerine Bir Değerlendirme, Mali Çözüm, 30(161), 245-258.
  • Camargo, R. (2012). Determinantes dos pareceres dos auditores independentes emitidos às companhias negociadas na BM&FBOVESPA (Master’s Dissertation). Universidade Federal de Santa Catarina, Florianópolis.
  • Chartered Accountants Australia and New Zeland Report. (2020). Financial Reporting and Audit Guide: Financial reporting and audit issues stemming from COVID-19. Retrieved October 30, 2020, from https://www.charteredaccountantsanz.com/tools-and-resources/client-service-essentials/reporting/financial-reporting-and-audit-guide-financial-reporting-and-audit-issues-stemming-from-covid19
  • Deniz, F. (2021). Covid-19 Pandemisinin Sınırlı Bağımsız Denetim Raporları Üzerine Etkisi: Türk Bankacılık Sektörü Örneği, Akademik Sosyal Araştırmalar Dergisi, 9(114), 220-240.
  • Dohrer, B. (2020). How Auditors Can Test Inventory Without a Site Visit, Retrieved September 4, 2020, from https://www.journalofaccountancy.com/news/2020/mar/auditing-how-to-observe-inventory-during-coronavirus-pandemic.html
  • Dye, R. (1993). Auditing Standards, Legal Liability, and Auditor Wealth, The Journal of Political Economy, 101, 887-914.
  • Ferreira, C. and Morais, A. I. (2020). Analysis of the Relationship Between Company Characteristics and Key Audit Matters Disclosed, Revista Contabilidade & Finanças, 31(83), 262-274.
  • Hay, D., Shires, K. and Dyk, D. (2021). Auditing in the Time of COVID – The Impact of COVID-19 on Auditing in New Zealand and Subsequent Reforms, Pacific Accounting Review. Ahead-of-print. 10.1108/PAR-09-2020-0155.
  • Institute of Chartered Accountants in England and Wales (ICAEW) Report. (2020a). Coronavirus (COVID-19): Considerations for Inventory Audit Testing. Retrieved August 8, 2020, from https://www.icaew.com/technical/audit-and-assurance/audit/quality-control/coronavirus- considerations-for-inventory-audit-testing
  • Institute of Chartered Accountants in England and Wales (ICAEW) Report. (2020b). COVID-19 and How to Report an Emphasis of Matter. Retrieved August 8, 2020, from https://www.icaew.com/insights/viewpoints-on-the-news/2020/aug-2020/covid19-and-how-to-report-an-emphasis-of-matter#:~:text=An%20emphasis%20of%20matter%20paragraph%20refers %20to%20a%20matter%20presented,not%20modify%20the%20audit%20opinion.
  • International Federation of Accountants (IFAC) Report. (2020a). Auditor Reporting in the Current Evolving Environment due to Covid-19. Retrieved August 24, 2020, from https://www.ifac.org/system/files/publications/files/Staff-Alert-Auditor-Reporting-Final.pdf?utm_source=IFAC+Main+List&utm_campaign=87173fe1a0-EMAIL_CAMPAIGN_2018_11_15_07_08_COPY_01&utm_medium=email&utm_term=0_cc08d67019-87173fe1a0-80398665
  • International Federation of Accountants (IFAC) Report. (2020b). Summary of Covid-19 Audit Considerations. Retrieved August 24, 2020, from https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/summary-covid-19-audit-considerations
  • International Standards on Auditing (ISA). 501: Audit Evidence — Specific Considerations For Selected Items. Retrieved January 15, 2021, from https://www.ifac.org/system/files/downloads/a023-2010-iaasb-handbook-isa-501.pdf.
  • International Standards on Auditing (ISA). 701: Communicating Key Audit Matters in The Independent Auditor's Report. Retrieved January 15, 2021, from https://www.ifac.org/system/files/publications/files/ISA-701_2.pdf.
  • International Standards on Auditing (ISA) 706: Audit Evidence — Specific Considerations for Selected Items. Emphasis of Matter Paragraphs and Other Matter Paragraphs in The Independent Auditor's Report Retrieved January 15, 2021, from https://www.ifac.org/system/files/publications/files/ISA-706-Revised_0.pdf.
  • Karakaya, B. (2020). COVID-19 Pandemisi Döneminde Denetim Eğitimleri, Sayıştay Dergisi, 31(119), 157 - 166.
  • Karakoç, M. and Gündüz, M. (2021). Covid-19 Sürecinde Sınırlı Bağımsız Denetim ve BIST 100 Şirketleri Üzerine Bir Araştırma, OPUS International Journal of Society Researches, Pandemi Special Issue, 3568-3592. DOI: 10.26466/opus.895785
  • Karapınar, A. and Dölen, T. (2020). Bağımsız Denetim Raporlarında Kilit Denetim Konusu Açıklamaları: Türkiye Örneği, Muhasebe Bilim Dünyası Dergisi, 22(4), 763-780. https://doi.org/10.31460/mbdd.781322
  • Karataş, M. (2020). Covid-19’un Denetim Çalışmaları Üzerine Etkileri – Muhtemel Zorluklar ve Dikkat Edilmesi Gereken Hususlar. Retrieved January 15, 2021 from https://kovid19.turmob.org.tr/covid-19un-denetim-calismalari-uzerine-etkileri
  • Kavut, F. L. and Güngör, N. (2018). Bağımsız Denetimde Kilit Denetim Konuları: BİST-100 Şirketlerinin 2017 Yılı Analizi. Muhasebe Enstitüsü Dergisi, 16(59), 59-70.
  • KPMG Report. (2020). Communicating About Covid-19 Through The Auditor's Report. Retrieved October 20, 2020, from https://home.kpmg/nl/nl/home/insights/2020/06/communicating-about-covid-19-through-the-auditors-report.html
  • Merton, B. (2020). For Internal and External Auditors: 5 Steps to Implement Remote ISO/GMP Audits. Retrieved January 15, 2021, from https://www.unifize.com/how-to-do-a-remote-audit-during-covid-19/
  • Parlak, N. (2021). Covid-19’un Bağımsız Denetim Raporuna Ve Denetçinin Görüşüne Etkisi: BİST’te Bir Araştırma, Ardahan Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 3(1) , 34-41 .
  • Public Disclosure Platform. www.kap.org.tr
  • Public Oversight Accounting and Auditing Standards Authority (PO). Covid Salgınının Sürdürülen Bağımsız Denetimlere Etkisi, Retrieved June 24, 2020 from https://www.kgk.gov.tr/ContentAssignmentDetail/4659/COVID-19-Salgınının-Yurutulen-Bagımsız-Denetimlere-Etkisi .
  • Pricewaterhouse Coopers (PwC) Report. (2020). Accounting Implications of The Effects of Coronavirus. Retrieved December 15, 2020, from https://www.pwc.com/gx/en/services/audit-assurance/assets/accounting-implications-effects-coronavirus.pdf
  • Rashwan, A. R. M. S. and Alhelou, E. M. S. (2020). The Impact of Using Artificial Intelligence on the Accounting and Auditing Profession in Light of the Corona Pandemic, Journal of Advanced Research in Business Management and Accounting, 6(9), 97-122.
  • Selimoğlu S.K., Yeşilçelebi, G. and Altunel, M. (2021). Pandemi Krizi Döneminde Bağımsız Denetim İçin Yeni Bir Anlayış. Business & Management Studies: An International Journal, 9(2), 778-793.
  • The Association of Chartered Certified Accountants (ACCA) Report. (2020). The Impact of Covid-19 on Audit and Assurance – Challenges and Considerations. Retrieved August 30, 2020, from https://www.accaglobal.com/uk/en/cam/coronavirus/ukmembers-covid19.html
  • The Australian Auditing and Assurance Standards Board (AUASB Report). (2020). The Impact of Coronavirus on Financial Reporting and the Auditor's Considerations. Retrieved August 28, 2020, from https://www.auasb.gov.au/admin/file/content102/c3/AASB19009_COVID19_FA.pdf
  • The Institute of Chartered Accountants of India (ICAI) Report. (2020). Impact of Coronavirus on Financial Reporting and the Auditors Consideration, Retrieved September 15, 2020, from https://resource.cdn.icai.org/58829icai47941.pdf.
  • The International Auditing and Assurance Standards Board (IAASB). (2020). Auditor Reporting in the Current Evolving Environment Due to COVID 19. Retrieved August 24, 2020, from https://www.ifac.org/system/files/publications/files/Staff-Alert-Auditor-Reporting-Final.pdf
  • The International Financial Reporting Standards (IFRS) 16 – Leases. https://www.pwc.be/en/FY20/documents/covid-19-whitepaper-rethinking-internal-controls-for-pandemic-recovery.pdf Retrieved August 24, 2020
There are 39 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section MAIN SECTION
Authors

Duygu Şengül Çelikay 0000-0002-5222-6816

Early Pub Date June 6, 2022
Publication Date June 30, 2022
Submission Date July 14, 2021
Published in Issue Year 2022 Volume: 24 Issue: COVID-19 Özel Sayısı

Cite

APA Şengül Çelikay, D. (2022). COVID-19 IN AUDIT REPORTS: A STUDY ON THE EFFECTS OF BUSINESS AND AUDITOR CHARACTERISTICS. Muhasebe Bilim Dünyası Dergisi, 24(COVID-19 Özel Sayısı), 30-52. https://doi.org/10.31460/mbdd.971511