Abstract:

Independent external audit is an important part of a strong corporate management. There may be many factors in the choice of an independent external auditor. Some companies choose audit companies to minimize the audit costs, while some prefer corporate audit companies. It is of great importance to understand the interest of a strong corporate management structure with the selection of the auditor to analyze these processes well. The aim of this study is to explore the relationship between corporate management and the selection of auditors using 882 company-year data from 2005 to 2013 companies in the manufacturing sector that are traded in Borsa Istanbul. As a method of analysis, the relevant relationship was studied using logistical regression analysis. The empirical findings show that the selection of the auditor's company, especially the board of directors and the partnership structure, is influenced by the ratio of market value to the record value, the logaritm of the total assets, the currency rate and the status of the CEO of the company.

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