Accounting Standards Compliance: In Norway, organizations must comply with the Norwegian Companies Act and Accounting Act with a heavy emphasis on compliance with the relevant Tax Laws (Bhimani, 2003, p. 67) and Turkey uses International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) as benchmarks to draw good practices in the field of accounting and audit regulation. Uniform Chart of Account (UCA) has been created to develop new accounting standards that would properly present accurate and comparable views of Turkish companies (Heely & Nersesian, 1993, p. 348).
The IFRS standards have found their way to Norway and Turkey both as they are a part of the European Commission (E.C.).
Accounting Standards Governing Bodies: Norwegian Institute of State Authorized Public Accountants or Norges Statsautoriserte Revisors Forenings (NRSF) established in 1930 and the Norwegian Institute of registered Accountants or Norges Registrerte Revisors Forenings (NRRF) established in 1954 are the main accounting standards governing bodies for Norway (Bhimani, 2003, p.
105) and the Turkish Accounting Standards Board (TMSK) incorporates most of the guidelines set forth by the IAS and IFRS in Turkey (Bazaz, 2002).
Audit: Large companies are supposed to be audited by a state authorized public accountant and the other companies may be audited by such a person or a registered accountant in Norway (Heely & Nersesian, 1993, p. 198) whereas the audits conducted are based on ascertaining that the statutory books are in compliance with the USA and the Procedural Law in Turkey.
In Norway, the auditor should ascertain that the accounts are in accordance with the relevant Companies Act and Accounting Act and they comply with GAAP (Generally Accepted Accounting Principles), whereas there is no single standard governing the audits or financial statements of companies in Turkey (Bazaz, 2002).
Stock Exchanges Standards: Companies listed in the Istanbul Stock...