Audit Quality in the Investment Property Sector

This dissertation aims to understand better the auditor's reporting, especially the most challenging fair value audit. Examining the audit reports of public investment real estate companies, particularly the auditor's reporting on the audit of the fair value of investment properties, this dissertation focuses on the quality components of auditing. The first three articles focus on auditing the fair values of investment properties reported by the auditors about key audit matters. The first article focuses on reporting the impact on earnings in audit reports. In the second and third essays, questions related to auditors' skepticism and the results show that auditors do not specifically emphasize these issues in their audit reports but contain more standardized statements. The fourth essay addresses the long-standing question of a company's accounting, which is the better reporting method based on acquisition cost or fair value. The effect of auditor choice has also been considered for this reporting.

Investment properties play a significant role in the economy, and real estate assets can be one of the most significant balance sheet items globally and in Europe. International Financial Reporting Standards (IFRS) allow investment properties to be measured at fair value, and the change in fair value is recognized in the financial statements through profit or loss. However, when the fair values of properties are not unambiguously derived from market information, the financial statements of each investment property company include a significant item requiring management judgment. In the auditor's report, the auditor's task is to verify that the prepared financial statements give a true and fair view of the company's results and financial position.

The dissertation results create new perspectives and understanding of auditors' reporting to standard setters, auditors, and auditors. However, the level of auditors' reporting is variable, and the increase in audit reporting requirements during the investigation period has not yet led to fully transparent reporting.