A Comparative Perspective on Independent Audit of Unlisted Companies : Cases of Turkey, Japan and Albania

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This study aims to discuss the extent to which independent audits of unlistedcompanies should be expanded by focusing on thresholds that specify the size of unlistedcompanies subject to independent audits in three countries that are sociallyand economically quite different from one another : Japan, Turkey and Albania.Various factors affect stakeholders' need for independent audits. In other words,different criteria may be considered to define thresholds. In this study, to developsuggestions for the thresholds, we analysed types of wrongdoings encountered inthese countries and considered their corruption perception scores.  In this study, we first revealed the similarities and differences in the types ofwrongdoings encountered in accounting and independent auditing practices in thethree countries by applying an in-depth interview method to the relevant intervieweesin these countries. The findings indicate that in these countries, the types andintensities of wrongdoings differ in some respects and wrongdoings more or less existin their accounting practices.  In this context, we suggest that the types and intensities of wrongdoings encounteredin these countries and their corruption perception scores should be disregardedwhen defining thresholds that specify the size of the unlisted companiessubject to independent audits. Moreover, we suggest that the thresholds should besuitable for contributing to meeting stakeholders' needs. If very high thresholds aredefined for unlisted companies, very few entities will be subject to independent audits.In contrast, if very low thresholds are defined, this audit obligation is highlylikely to increase the administration costs of external audit services for very smallcompanies. Extremely low thresholds are also likely to impose an audit obligationA comparative perspective on independent auditof unlisted companies :Cases of Turkey, Japan and Albania1)Mehmet Ozbirecikli, PhDCPA2), Professor of AccountingMustafa Kemal UniversityHatay, Turkeyozbirecikli@mku.edu.trYoshiaki JinnaiProfessor of AccountingTokyo Keizai UniversityTokyo, Japanjinnai@tku. ac. jpNertila CikaCPATirana University, IT-AL ConsultTirana, AlbaniaNertila.Cika@albanianaudit.comA comparative perspective on independent audit of unlisted companies : . . .152on very small companies, which may result in poor audit quality.


  • 東京経大学会誌(経営学) = The Journal of Tokyo Keizai University : Business

    東京経大学会誌(経営学) = The Journal of Tokyo Keizai University : Business (288), 151-172, 2015-12-18



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