The Effects Of Sarbanes Oxley Act On Turkish Capital Markets

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İşseveroğlu G., Mugal E., Ertan Y.

Accounting And Management Information Systems, no.18, pp.21-31, 2006 (Peer-Reviewed Journal)


In recent periods, the accounting and auditing scandals created global effects on the world's largest firms. These scandals decreased the confidence on accounting both financial statements and accounting audit In order to provide confidence, generally accepted auditing principles, issued by IF.4C, were legislated by the Sarbanes Oxley Act (SOX Act) of the USA in July 2002 which evidently had various reflections throughout the world. The SOX Act made proactive reflections on Turkish Capital 11/1arkets. The audit of listed companies is regulated with the "Communique Serial X No: 16 Regarding Independent Auditing in Capital Markets" by the Capital Market Board dated 04.03.1996. After the SOX Act this communiqué was revised by the "X19 Amending Communiqué on Independent Auditing in Capital Markets" dated 02.11.2002. However, the Turkish auditing standards are not completely compatible with international standards on Auditing issued by IFAC. In order to achieve this compatibility Capital Market Board issued "Communique Serial X, No: 22 Regarding Independent Auditing in Capital Markets" dated 12.06.2006 which consist of the translation of IAS issued by IFAC. The purpose of this paper is to examine by literature review the effects of Sarbanes Oxley Act on auditing in Turkish Capital Markets and to emphasize the innovation in Turkish auditing standards.