Adequacy of Audit Committees: A Study of Deposit Banks in Turkey

Borsa Istanbul Review

16 Pages Posted: 23 Mar 2018 Last revised: 23 Jun 2018

See all articles by Mustafa Tevfik Kartal

Mustafa Tevfik Kartal

Borsa Istanbul

Cemal Ibis

Isik University

Ozgur Catıkkas

Marmara University - School of Banking and Insurance

Date Written: June 2, 2018

Abstract

The purpose of this study is to investigate the adequacy of the audit committees in Turkish Banking Sector. Considering national and international legislation, and best practices, audit committees’ adequacy involves the issues regarding committees and the responsibilities of committees. Interviews and questionnaires in 6 deposit banks were carried out to investigate the adequacy of the audit committees. The data, collected through the interviews and questionnaires, were analyzed by frequency analyses, alfa test and t-tests. According to the results, a variety of deficiencies were determined in the audit committees’ structure and responsibilities of internal control, risk management, accounting and financial reporting, independent auditing, valuation services, and rating bureaus. Although all the banks examined in the study were deposit banks, the adequacy of the audit committees varied according to the banks. Banks’ board of directors and the audit committees should update their approach in order to carry out their duties more efficiently.

Keywords: Audit committees, Committee adequacy, Committee responsibility, Interview, T-test, Turkish banking sector

JEL Classification: G21, M42

Suggested Citation

Kartal, Mustafa Tevfik and Ibis, Cemal and Catıkkas, Ozgur, Adequacy of Audit Committees: A Study of Deposit Banks in Turkey (June 2, 2018). Borsa Istanbul Review, Available at SSRN: https://ssrn.com/abstract=3143098

Mustafa Tevfik Kartal (Contact Author)

Borsa Istanbul ( email )

Reşitpaşa Mah. Borsa İstanbul Cad. No: 4
Borsa İstanbul Cad. No: 4
Istanbul, 34467
Turkey

Cemal Ibis

Isik University

Buyukdere Caddesi
Ayasaga
Maslak, Istanbul 80670
United States

Ozgur Catıkkas

Marmara University - School of Banking and Insurance

Goztepe Campus
Istanbul, 34722
Turkey

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