What Is Financial Auditing?

Financial auditing is inquiry of financial decisions and transactions of the public administration in terms of budget executions. First step of the financial auditing is the auditing of accounting practices carried out in the accounting units to which are affiliated to the spending units (local units of spending agencies). In this step, they examine fairly presentation of the accounting records, accurateness (flawlessness) of the single financial transactions and their compliance with the law, by-law and regulations. According to the results of this audit, it is decided whether those who are responsible (assessment officer, accountant and the others) acquit or misappropriate and a court decision is prepared about them. The second step includes determination of the accurateness, explicitness and sincerity of the financial statements, financial reports and declarations. Public administration account (budget final account) is prepared by the strategy development unit of this administration and top manager presents it to the relevant bodies. In this regard, outcome of the audit is whether it is confirmed or not that these financial statements and reports are accurate and consistent. This confirmation is called as "Conformity Statement" in the literature. The abolished General Accounting Law no. 1050 emphasized explanation of the financial audit in terms of responsible officers and included only a few articles for general account of the administration. On the other hand, Public Fiscal Management and Control Law no. 5018 replacing it emphasizes public administration accounts and does not give detail information on the revenue, audit of the expenditure and property transactions constituting a basis for them. This approach difference between the two laws causes a misunderstanding that the nature and content of the audit have also changed. However, financial audit is still financial audit and meaningful with its entirety. Unless we audit the revenue, expenditure and property transactions and accounting practices for keeping records of them, how can we prove or guarantee the accuracy and sincerity of the public administration accounts arranged on the basis of this accounting data? Or can conformity declaration for the public administration account guarantee that all of the financial transactions are accurate and in compliance with the legislation? No. (Constitution: 164)