Banks are of vital importance in economies, because their bankruptcy leads to losses for millions of small savers. As a result, banks are closely audited all around the world. The prerequisite for a healthy economic system is the use of internal and external auditing and risk management in banks. In this study, the developments of internal and external audits in banking have been summarised according to regulations in Turkey and significant risks have been discussed in terms of bank management decisions and risk management. Additionally, Basel regulations and capital adequacy have been analysed and the problems that affect the banking sector in Turkey have been summarised. The aim of our study is to determine the current situation and this study is based on a literature and regulation review.