ANALYSIS OF FACTORS AFFECTING ACCOUNTING ERRORS AND FRAUD IN THE CONTEXT OF ACCOUNTING ETHICS: YALOVA CITY EXAMPLE

Abstract

This study first focused on the differences between accounting mistakes and fraud. Also, the effects of accounting scandals which occured in Turkey and the world were presented. Then, a research was run on public accountants (PAs) and certified public accountants (CPAs) residing in Yalova city of Turkey by using the questionnaire methodology. 46 PAs and CPAs were inculuded to the study. First part of the questionnaire covered 7 items on demographic specifications of accounting professionals and the second part of questionnaire included 23 items on professional ethics, errors and fraud. Overall, the research questionnaire took advantage of 30 items. In this context, reasons behind accounting errors and frauds as well as the relationship of these errors and frauds with professional ethics were analyzed. A great majority of respondents had undergraduate degree, were males and between 31-40 ages. Also, most respondents had 11-15 and 16-20 years of professional experience. Plus, a high percentage of respondents were employing 1-5 employees. Their number of clients varied between 26-35. It was also determined that, most accounting professionals had employees who were high school graduates. Concerning the research results, most accounting professionals also reported that they were definitely behaving parallel to ethics. Parallel to this statement, a great majority of accounting profssionals completely disagreed that they were behaving against techinal and professional standards. Besides, a high percentage of accounting professionals disagreed that penalties and fines for individuals participating in transactions against professional ethics were adequate. Similarly, a great ratio of accounting professionals disagreed that arrangements in the context of professional ethics were at a satisfactory level in Turkey. On the other hand, most accounting professionals agreed that tax practices and ratios were effective on accounting errors and frauds. Finally, most accounting professionals agreed that insufficient auditing practices had an impact on accounting errors and frauds.