Audit Opinions on the Independent Audit Reports of Textile Companies in the BIST Close Monitoring Market and Analysis of the Sectoral Performances of the Companies Using the TOPSIS Method

Abstract

Purpose – The aim of this study is to examine the bases of the independent audit opinions of the textile companies traded in the Borsa Istanbul Close Monitoring Market and to compare the performance of the companies operating in the textile sector. In addition, it is also aimed to investigate the relationship between the audit opinion and the financial performance of the companies in the Close Monitoring Market. Design/Methodology/Approach – The bases of the independent audit opinions of the textile companies traded in the Borsa Istanbul Close Monitoring Market for the years 2020-2023 were analyzed by content analysis. In addition, the performances of 22 companies in the sector were determined by TOPSIS analysis and the relative status of the companies in the sector was determined. Findings – As a result of the examination and analysis, it was determined that Mega, Yataş and Arsan in 2020; Sönmez, Bilici and Arsan in 2021; Bilici, Birko and Desa in 2022; Arsan, Rodrigo and Bilici in 2023 are the top three best performing companies, and there is no relationship between the opinion in the audit report and company performance. However, it is concluded that it would be beneficial to consider the independent audit reports of companies in investment decisions. Discussion – In general, it may be the right decision for investors to prefer the best performing companies in the sector. However, the lack of a close relationship between independent audit opinions and performance calls this decision into question. Shortly, it is concluded that taking independent audit reports into account in investment decisions will provide benefits.