ACADEMY OF ACCOUNTING AND FINANCIAL STUDIES JOURNAL, cilt.18, sa.1, ss.49-63, 2014 (Scopus)
Some of the prior studies showed a great deal of non-compliance with international
standards related to accountancy. This paper contributes to understanding the compliance
degree of implementing international standards in Turkey through the quality control activities
(2008-2009-2010-2011) of the Capital Market Board (CMB). In addition, we seek some
evidence to find out the dominant party (reporting entity, accounting firm, CMB) over the
reporting practices of listed companies and auditing practices of accounting firms in Turkey.
The quality control activities of the CMB showed that the implementation of the IFRSs and
ISAs were inefficient in Turkey, so the audit firms were cautioned, punished, or their licenses
cancelled. We concluded that the compliance degree of the implementing international
standards will depend on the knowledge level of the CMB Officio in Turkey. Therefore the
CMB or regulator has been dominant over the reporting entity, not the audit firm nor the
reporting entity.