THE EFFECT OF INDEPENDENT AUDIT QUALITY ON COMPANY PROFITABILITY: BIST100 TECHNOLOGY SECTOR EXAMPLE

YILDIZ F., KILIÇASLAN İ.

Al-Farabi International Journal on Social Sciences, cilt.9, sa.2, ss.1-13, 2024 (Hakemli Dergi)

Özet

The purpose of this study is to examine the impact of audit quality on financial performance using the data of 10 companies operating in the technology sector of Borsa Istanbul (BIST) between 2018 and 2022. Technology companies often have operations with high risk and uncertainty, which increases the need for strong internal control and audit processes. In this context, internal control, internal audit, risk analysis group, audit opinion as independent variables representing audit quality, and Net Profit Margin, Return on Assets (ROA) and Return on Equity (ROE) ratios as dependent variables representing companies' financial performance were used. Correlation and regression analyses were used to examine these relationships. Stepwise regression results showed that the internal control variable significantly increased the explanatory power of the model and was statistically significant. The correlation analysis with ROA revealed a significant relationship between the internal control variable and ROA. In addition, the internal control variable has a significant effect on Net Profit Margin, while the other variables do not show a significant effect.