As a capable emerging country and a candidate for EU accession, Turkey needs both structural transformation and an ongoing development and harmonization of its capital market legislation. For this reason, corporate governance framework and the modern internal auditing practices could enable Turkey not only to control its own risks superior but also to enhance the market's confidence in its commitment to sound fiscal and monetary policies. In this paper, we evaluate the internal auditing performance metrics considering the Institute of Internal Auditors (IIA) standards to make relevant recommendations for practitioners in Turkey. In this way, we aim to increase the awareness on the importance of corporate governance framework and the benefits of relying on modern internal auditing techniques for companies. We also intend to contribute the performance improvements in these fields of work.
ABSTRACT Corporate govemance index (CGI) is a quite new concept in Turkey. As a promising emerging country and a candidate for EU accession, Turkey needs both structural changes and an ongoing development and harmonization of its capital market legislation. Hence, the use of corporate govemance (CG) framework and the modem intemal auditing techniques could enable Turkey not only to manage its own risks better but also to increase the market's confidence in its commitment to sound fiscal and monetary policies. In this paper, we analyze the listed companies' corporate govemance and internal auditing performance metrics which have gained the relevant rating scores based on the Corporate Govemance Principals of Turkey. This rating reflects a good overall performance of the company regarding its current corporate govemance structures as measured against the Principles of the Turkish Capital Markets Board (CMB). In this way, we aim to increase the awareness on the importance of corporate govemance framework, CG issues and the benefits of relying on modem intemal auditing techniques to achieve strategic goals for Turkish companies in the future. We also intend to contribute the improvement in these fields of work. Corporate govemance index (CGI) is a quite new concept in Turkey and unfortunately the number of companies at GCI is surprisingly low as compared to the number of listed companies at İstanbul Stock Exchange (İSE), i.e. 319. There are only 18 listed companies accepted to this index. For this reason, we could not apply any econometric analysis with such a limited of samples in our hands rather; we could only be able to use descriptive analysis. But, to our knowledge, this is the first study using the data of the companies listed in İstanbul Stock Exchange Corporate Govemance Index (CGI) in Turkey in connection with the related variables. Due to data constraints we prefer the non-financial companies which have corporate govemance ratings to make a sound comparison with the Institute of Internal Auditors (IIA) ...
ABSTRACT The major aim of this work is to analyze the effects of BASEL II regulations on the small and mid-sized enterprises (SME) in Turkey. It is accepted that there are still various shortcomings of BASEL II implementation regarding the corporate governance (CG) and regulations in Turkish economy. The companies which are classifi ed as SME and quoted to KOSGEB, i.e. a governmental organization supporting SMEs, are used in the empirical work. The empirical fi ndings are discussed and compared with the major fi ndings from other countries in the literature and also recommendations are made regarding BASEL II implementation and its effects on corporate governance and economic growth in Turkey. ÖZET Bu çalışmada amaç, BASEL II düzenlemelerinin kurumsal yönetim bağlamında Türkiye ekonomisi üzerinde ortaya çıkaracağı iktisadi etkileri Küçük ve Orta Boy İşletmeler (KOBİ) açısından ortaya koymaktır. Türkiye'de BASEL II düzenlemeleriyle ilgili olarak yapılan yasal düzenleme ve kurumsal yönetimle ilgili politikalardan kaynaklanan eksikliklerin ve yeni uygulamaların iktisadi etkilerinin analizi yapılmıştır. Bu çalışmada ampirik uygulama için, Küçük ve Orta Ölçekli Sanayi Geliştirme ve Destekleme İdaresi Başkanlığı (KOSGEB) üyesi olan ve KOBİ tanımlaması kapsamında seçilen fi rmaların verileri kullanılmıştır. KOBİ'lerin Türkiye'deki konumu ve BASEL II düzenlemelerinin etkilerini araştırmak üzere oluşturulan modelin bulguları tartışılarak literatürdeki diğer ülke uygulamaları ile karşılaştırması yapılmıştır. Bulgular çerçevesinde, BASEL II düzenlemelerinin KOBİ'ler bağlamında, Türkiye açısından kurumsal yönetim ve ekonomik büyüme üzerindeki etkilerinin sonuçları üzerine önerilerde bulunulmuştur.
This study mainly aims to examine the perception of Turkish Airlines Technic staff about the effect of proactive maintenance scheduling (PMS) on maintenance costs (MCs) and airline profitability (AP). Another purpose of the study is to reveal if the perception of the staff changes according to the demographic features and experience of the staff. As far as it is known, there is no direct study addressing the effects of PMS on MCs and airline profitability. The study is considered to be a first in this context. In the study, Turkish Airlines-THY was chosen as the company that was handled. The fact that the company has a separate special maintenance & repair group (Turkish Airlines Technic-THYT) was effective in the selection of this company. Some additional qualifications (very rooted, with corporate governance, Turkey's top largest & full-service carrier, member of IATA and Star Alliance, and a listed company (in BIST) were also among other factors affecting the selection. Methodologically, it was used a quantitative survey with a sample of 133 THYT staff. The staff has been chosen among departments that take place actively/directly in maintenance. Besides questions that aim to measure the perception of THYT staff on the effects of PMS on MCs and AP, some demographic and experience-related questions were asked in order to find out if the perception of the staff changes according to their qualifications. The data were collected by online survey method and analyzed with SPSS version 22. Necessary tests together with Chi-square and Fisher's tests were carried out to analyze the results. It was concluded that there is a strong correlation between PMS and the MCs. The study proved that PMS has a great decreasing effect on MCs and a great increasing effect on AP. The study also revealed that THYT personnel is like-minded and that PMS reduces MCs and increases AP as well.
This study examines the effects of the effectiveness of the internal control system (ICS) on crisis management skills (before, during, and after the crisis) in the event of a disaster through the Istanbul Metropolitan Municipality (IMM) Fire Service Department. Methodologically, a comprehensive survey questionnaire was used to collect data from 251 workers of the IMM fire service department located on the Anatolian side of Istanbul. Statistic Package for Social Sciences (SPSS) version 22 used to analyze data by running among other reliability tests, T-Test, ANOVA, and Regression analysis. The results of the study indicated that ICS of the Fire Service Department of IMM showed high levels of effectiveness in the event of a disaster and that the institution has a high level of crisis management skills. In addition, the study found that a high positive relationship existed between ICS and Crisis Management Skills of the IMM fire service department before, during, and after the crisis in the event of a disaster. Finally, the study revealed that, ICS has a positive and high impact on IMM crisis management skills before, during, and after the crisis, and that the effectiveness of ICS had increased the crisis management skills of the institution.
This paper aims to evaluate the effectiveness of Ghanaian listed banks using COSO's IC framework. Only Control environment, Risk assessment, and Monitoring activities components of the framework considered for this study. Methodologically, out of the 60 questionnaires, surveys distributed to the banks 37 copies received representing a 61.7% response rate. Statistic Package for Social Sciences (SPSS) v25 used to analyze data by running among other reliability tests, tests of normality, and descriptive statistics. The results of means and standard deviations gained ascertained that; strong controls existed in the control environment, risk assessment, and monitoring activities of internal control of the Ghanaian listed banks. A risk assessment had a low average mean compared to the control environment and monitoring activities. Because banks operate under higher risk than any other financial institution, we propose that Ghanaian listed banks should increase investment in risk assessment.
The global auditing and accounting scandals of the past have been a turningpoint for the internal control system (ICS) by increasing its importance and necessityas well as global awareness towards it. Various factors played roles in the occurrenceof scandals. A dominant one is the lack of ICS and/or the failure to make it efficient. The need for ICS and ensuring its effectiveness has been subject to various national/international standards and legal regulations including the Sarbanes-Oxley (SOX) Law. Institutional/individual responsibilities of the relevant parties (board of directors, auditcommittee, senior management, independent auditor, public oversight authority, etc.) for the establishment and effectiveness of ICS have been significantly increased inthese standards and regulations. An effective ICS is a vital safety component in many respects such as protecting assets and common interests of all stakeholders, achievinggoals, profitability, ensuring the effectiveness/efficiency of activities, management/accounting control, compliance with policy/procedure/legal regulations/ethical principles,corporate governance, quality assurance, CRM, transparency, accountability, accurate/reliable reporting, sustainability, competitiveness, contribution to audit and so on. This study examined the features of ICS with a conceptual framework and then analyzed systematically the global scandals, which revealed the necessity of internal control, aswell as national and international standards and legal regulations. ; Geçmişte yaşanan küresel etkili muhasebe ve denetim skandalları, iç kontrol sisteminin (İKS'nin) öneminin ve İKS'ye yönelik küresel farkındalığın artmasında bir dönüm noktası olmuştur. Skandalların oluşumunda çok çeşitli faktörler rol oynamıştır. Bunlardan birisi de İKS'lerinin olmaması veya etkinliğinin sağlanamamasıdır. İç kontrol gerekliliği ve İKS'nin etkinliğinin sağlanması konusu, Sarbanes-Oxley (SOX) Yasası dahil çok çeşitli ulusal/uluslararası standartlar ile yasal düzenlemelere konu edilmiştir. Söz konusu standartlar ve düzenlemelerde İKS'nin kurulması ve etkinliğinin sağlanmasına yönelik ilgili tarafların (yönetim kurulu, denetim komitesi, üst yönetim, bağımsız denetçi, kamu gözetim otoritesi vb.) kurumsal/bireysel sorumlulukları ciddi biçimde artırılmıştır. Etkin bir İKS, çok çeşitli acılardan (tüm paydaşların ortak çıkarlarının korunması, varlıkların muhafazası, hedeflere ulaşma, kârlılık, faaliyetlerin etkinliğini/verimliliğini sağlama, yönetim/muhasebe kontrolü, politika, prosedür ve düzenlemelere uyum ve etik ilkelere riayet, kurumsal yönetim, kalite güvencesi, kurumsal risk yönetimi, şeffaflık, hesap verebilirlik, doğru/güvenilir raporlama, sürdürülebilirlik, rekabetçilik, denetime katkı vb.)hayati bir emniyet bileşenidir. Çalışmada, öncelikle İKS'nin özellikleri kavramsal çerçeveyle birlikte irdelenmekte ve iç kontrol gerekliliğini ortaya koyan küresel skandallar ve ulusal/uluslararası standartlar ile yasal düzenlemelerin sistematik analizi yapılmaktadır.
This paper1 , which is in the light of the last trends in internal auditing, aims to explain the challenges and major issues in establishment of an effective internal audit (IA) function to achieve value-added IA activities as a value-added service center. This paper also discusses the current internal auditing environment in Turkey considered for the needs and expectations of stakeholders and new legislations. In the next five years, five emerging activities for internal auditing may be taken into consideration, namely, the review of corporate governance process, auditing of enterprise risk management (ERM) processes, addressing linkage of strategy and company performance, the ethics audits, and the migration to International Financial Reporting Standards (IFRS), they will be the major focus areas for internal auditing. The qualifications of IA staff, status within the corporation, setting up of the functional and administrative reporting lines, relationship with the audit committee of the board of directors, and the content of IA charter must be sufficient for assurance of the IA function's effectiveness and objectivity. The effective communication channels among management, audit committee, and IA become more important and must be operated in a consistent manner that accurately contributes to preventing potential future financial crisis and the effectiveness of risk management (RM). Ten main imperatives of change for IA can be summarized as emphasizing RM and governance, addressing key stakeholder priorities, and optimizing IA resources. Based on professional practices, international standards of Institute of Internal Auditors (IIA), best practices, and the relevant recommendations have been made by the authors for practitioners and stakeholders.
The purpose of this study is to examine the impact of the financial risks local governments are exposed to within the scope of financial risk management practices. Istanbul Metropolitan Municipality (IMM) was selected for this study because it is the largest local government with the highest budget. In the study, the development of financial risk performance of IMM between the years 2008-2018 was examined in the light of the risks IMM is exposed to. The main results regarding the risks faced by IMM during the period are as follows: Financial data obtained from the financial statements of IMM were used to examine the performance of listed risks& effects they have on the budget of IMM. The results indicate that (i) risk of dependence on shares from the central budget revenue; (ii) IMM was directly dependent on the central budget in terms of revenues, so in this period, the risk of dependency was high in terms of counterparty risk.
The purpose of this study is to examine impact of the financial risks local governments are exposed to within the scope of financial risk management practices. Istanbul Metropolitan Municipality (IMM) was selected for this study because it is the largest local government with the highest budget. In the study, the development of financial risk performance of IMM between the years 2008-2018 was examined in the light of the risks IMM is exposed to. The main results regarding the risks faced by IMM during the period are as follows: Financial data obtained from the financial statements of IMM were used to examine the performance of listed risks& effects they have on the budget of IMM. The results of the analyses is briefed as follows: Risk of Dependence on Shares from the central budget revenue: It was observed that IMM was directly dependent on the central budget in terms of revenues, so in this period, the risk of dependency was high in terms of counterparty risk. Risk of Dependence on the Rating Grade: It was understood that restriction of not passing the country score was still valid in practice and there was a risk of dependence on IMM's rating score. Borrowing& Exchange Rate Risk: IMM had borrowing risk because a significant portion of its total borrowing consists of foreign borrowing so it was significantly affected by increase in exchange rate and it was exposed to additional debt burden, hence the existence of exchange rate risk. Interest Rate Risk: It was understood that IMM was exposed to interest rate risk arising from fluctuations in rate. It was observed that debt burden of the IMM was affected to a certain extent. Credit& Liquidity Risk: It is understood that there is a liquidity risk. The credit& liquidity risks may be valid in upcoming period. Maturity Risk: It is observed that there wasn't maturity risk regarding maturity structures. Resource Risk: It is noteworthy that IMM has a resource risk in terms of sustaining& completing the investments undertaken. Seizure& Collaterals Risk: It was understood that IMM was exposed to this. In conclusion, various evaluations& suggestions were made for establishment of a financial risk management unit by IMM for effective management of financial risk.
The purpose of this study is to examine the impact of the financial risks local governments are exposed to within the scope of financial risk management practices. Istanbul Metropolitan Municipality (IMM) was selected for this study because it is the largest local government with the highest budget. In the study, the development of financial risk performance of IMM between the years 2008-2018 was examined in the light of the risks IMM is exposed to. The main results regarding the risks faced by IMM during the period are as follows: Financial data obtained from the financial statements of IMM were used to examine the performance of listed risks& effects they have on the budget of IMM. The results indicate that (i) risk of dependence on shares from the central budget revenue; (ii) IMM was directly dependent on the central budget in terms of revenues, so in this period, the risk of dependency was high in terms of counterparty risk.
The purpose of this study is to examine impact of the financial risks local governments are exposed to within the scope of financial risk management practices. Istanbul Metropolitan Municipality (IMM) was selected for this study because it is the largest local government with the highest budget. In the study, the development of financial risk performance of IMM between the years 2008-2018 was examined in the light of the risks IMM is exposed to. The main results regarding the risks faced by IMM during the period are as follows: Financial data obtained from the financial statements of IMM were used to examine the performance of listed risks & effects they have on the budget of IMM. Results of the analyses done for this study are summarized as follows: Risk of Dependence on Shares from the central budget revenue: It was observed that IMM was directly dependent on the central budget in terms of revenues, so in this period, the risk of addiction was high in terms of counterparty risk. Risk of Dependence on the Rating Grade: It was understood that restriction of not passing the country score was still valid in practice and there was a risk of dependence on IMM's rating score. Borrowing & Exchange Rate Risk: IMM had borrowing risk because a significant portion of its total borrowing consists of foreign borrowing so it was significantly affected by increase in exchange rate and it was exposed to additional debt burden, hence the existence of exchange rate risk. Interest Rate Risk: It was understood that IMM was exposed to interest rate risk arising from fluctuations in rate. It was observed that debt burden of the IMM was affected to a certain extent. Credit & Liquidity Risk: It is understood that there is a liquidity risk. The credit & liquidity risks may be valid in upcoming period. Maturity Risk: It is observed that there wasn't maturity risk regarding maturity structures. Resource Risk: It is noteworthy that IMM has a resource risk in terms of sustaining & completing the investments undertaken. Seizure & Collaterals Risk: It was understood that IMM was exposed to this. In conclusion, various evaluations & suggestions were made for establishment of a financial risk management unit by IMM for effective management of financial risk.
