INTERNAL AUDIT AND FINANCIAL REPORTING QUALITY: A LITERATURE REVIEW

Abstract

The purpose of this research; it is examine the relationship between internal auditing and financial reporting quality. In this study, national and international studies investigating the relationship between internal auditing and financial reporting quality were examined in the literature. As a result of the study, it has been determined that it is a positive relationship between the audit committee members being independent and financial expert and the financial reporting quality. It has been determined that the personal characteristics of the members of the audit committee (age, gender, experience) are reflected in the quality of financial reporting, a strong internal audit and internal control system is effective in preventive fraud. In addition, it has been determined that the professional and personal characteristics of the auditors (age, education, experience) are reflected in the financial reporting quality.