Abstract:

In the past few years, with the bankruptcy of the enterprise, both the country’s economy and investors have been seriously damaged, the regulations on the continuity of the enterprises have also come with. The subject is included in both the Turkish Accounting and Financial Reporting Standards and the Independent Audit Standards. Accordingly, while the corporate management is responsible for preparing financial statements under continuity assumption, the independent auditor is also responsible for formulating an opinion on whether the financial statements are prepared in the essence of continuity. The unpredictable bankruptcy of also undermines the investor’s confidence in independent audit reports. In this direction, the study first attempted to predict whether the companies that are traded in the manufacturing industry in Bursa Istanbul in 2009-2017 published financial statements carry an uncertainty about the continuity of the financial statements. It has been used by the Altman Z Score model for this assessment. Later, the study examined the relationship between the forecast results and the auditors’ opinions given for these financial statements. The study finds that if the model has an uncertainty in relation to continuity, the auditor has also included this situation in the report and has often added an explanation paragraph by reporting a conditional opinion or a positive opinion.

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