A Glance at Company Audit in Turkey
We will tale a look at company audit in Turkey. Companies are subject to audit requirements as per the Turkish Commercial Code (TCC) and other relevant regulations. Here’s an overview of company audit in Turkey:
Mandatory Audit
Certain types of companies in Turkey are required to undergo mandatory audits. These typically include joint stock companies (A.Ş.) and limited liability companies (Ltd. Şti.) meeting certain criteria such as exceeding specified asset or revenue thresholds. The audit is conducted by independent auditors audit firms registered with the Public Oversight Accounting and Auditing Standards Authority (KGK).
Scope of Audit
The audit process involves examining the company’s financial statements, accounting records, internal controls, and compliance with legal and regulatory requirements. The auditor assesses the accuracy, reliability, and fairness of the financial information presented in the company’s annual accounts.
Appointment of Auditors
Auditors are appointed by the company’s shareholders during the General Assembly meeting. The appointment may be for a specific term, and auditors may be re-elected or replaced at subsequent meetings.
Audit Report
Upon completion of the audit, the auditor prepares an audit report summarizing their findings and opinions regarding the company’s financial statements and compliance with relevant standards. The audit report is submitted to the company’s shareholders and may also be required for regulatory filings.
Audit Standards
Auditors in Turkey are required to adhere to internationally recognized auditing standards, including the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB). These standards provide guidelines for the conduct of audits and the preparation of audit reports.
Public Oversight
The audit profession in Turkey is subject to public oversight by the Public Oversight Accounting and Auditing Standards Authority (KGK). The KGK is responsible for regulating and supervising audit firms, ensuring compliance with professional standards, and maintaining the integrity of the audit profession.
Penalties for Non-Compliance
Companies that fail to comply with audit requirements or provide false or misleading information may face penalties, fines, or other legal consequences. Non-compliance with audit obligations can also damage the company’s reputation and undermine investor confidence.
Overall, company audit in Turkey is an essential mechanism for ensuring transparency, accountability, and the reliability of financial information presented by companies. By conducting audits in accordance with established standards and regulations, companies can enhance trust among stakeholders and demonstrate their commitment to sound corporate governance practices.
