KEY AUDIT MATTERS WITHIN THE FRAMEWORK OF ISA 701: AN ANALYSIS ON AUDIT REPORTS OF COMPANIES LISTED IN BIST MANUFACTURING INDUSTRY

Accounting scandals, which emerge despecially with financial crises, revealed the more information and more transparent audit reports demands of users of financial statements. In this sense, The Public Oversight Authority published ISA 701 in 2017 in the Official Gazette in paralel to ISA 701 issued by the International Auditing and Assurance Standards Board (IAASB). The issues determined in communication with the senior management and which are important in the audit where the Professional judgement of the auditor are effective are called as key audit matters (KAM) and key audit matters are selected among these issues. In this study, the independent auditor's reports for the year 2017 of the companies operating in the manufacturing industry registered in Borsa ？stanbul were analyzed for their content.Within the scope of the analysis; after the researches on which KAM are concentrated in the sector, determination criteria of KAMs; numbers of KAMs, thet ypes of KAM ssubmission, the sub-sector, the page numbers of audit reports, independent audit firm and the type of opinion are analyzed with detail. According to results of analysis of variance, there was no significant difference in the number of KAM of the companies in terms of sub-sectors and the types of independent auditor opinion. Furthermore, it was found that there were significant differences in the number of key audit matters in terms of independent audit companies