Two of our partners hold the title of independent auditor. In Bursa and the surrounding area, we carry out statutory audits of companies subject to audit under Turkish Commercial Code No. 6102 and audits of companies that wish to be audited voluntarily.
Which companies are subject to independent audit?
Under the Turkish Commercial Code, the companies subject to independent audit are determined by Presidential Decree. Under this decree, if at least two of the criteria of total assets, annual net sales revenue and number of employees exceed the thresholds set by the decree in two consecutive financial years, the company becomes subject to audit from the following period. Different thresholds are also set for companies in certain fields of activity.
Since the thresholds are updated periodically, we need to calculate your company's position on the basis of the thresholds set for the relevant year. With the balance sheets, income statements and staff numbers for the last two years, we can make this assessment quickly.
The statutory audit process
The auditor is elected by the general assembly for each financial year and before the end of the period to be audited; the election is registered with the trade registry and announced. The audit consists of planning, understanding the internal control system, testing balances and transactions, and reporting. At the end of the audit, an independent auditor's report containing an opinion on the financial statements is issued.
Voluntary audit
Even where there is no legal obligation, many companies want their financial statements audited by an independent party. We define the scope of a voluntary audit together according to its purpose:
- Bank loan or financing application
- Due diligence before taking on a new shareholder, selling a company or making an acquisition
- Audit of group reporting requested by a parent company abroad
- The need to build trust between shareholders, or between management and shareholders
- Special-purpose audit of specific accounts or transactions
Our principle of independence
An auditor must not have been involved in keeping the books or preparing the financial statements of the company being audited. We therefore do not take on the independent audit of companies whose accounting we handle; for these companies we provide support in preparing for the audit. To prepare for an audit, see our financial reporting and internal audit and risk management services.
Who is it for?
- Companies subject to independent audit under the Turkish Commercial Code
- Companies approaching the audit thresholds that want to prepare
- Businesses in loan, investment or partnership negotiations
- Companies whose foreign shareholder requires audited financial statements
How does the process work?
- Step 1
Preliminary assessment
We determine whether you are subject to audit and the scope of the audit.
- Step 2
Engagement and election
The audit engagement is signed; for a statutory audit, the general assembly election and registration are carried out.
- Step 3
Planning and interim work
We get to know your business and internal controls and prepare an audit plan based on the risk areas.
- Step 4
Year-end audit
We test balances and transactions and obtain the necessary confirmations.
- Step 5
Reporting
We present the independent auditor's report and a management letter with our findings.
Frequently asked questions
Is my company subject to independent audit?
If you exceed two of the criteria of total assets, net sales revenue and number of employees set by Presidential Decree in two consecutive financial years, your company is subject to independent audit. The thresholds are updated periodically. When you send us the financial statements for the last two years and your staff numbers, we will clarify your position.
When should the independent auditor be elected?
The auditor must be elected by the general assembly before the end of the financial year to be audited. After the election, the board of directors has the auditor registered with the trade registry and announced. If you have realised late that you are subject to audit, you need to act without delay.
Can the firm that does our accounting also do our independent audit?
No. Under the independence rules, an auditor who keeps a company's books or prepares its financial statements cannot take on the audit of that company. Accounting and audit services must be provided by different parties.
How long does an independent audit take?
The time depends on the size of the company, its transaction volume and the state of its records. An audit usually consists of interim work during the year and year-end work; providing documents on time shortens the process considerably. To discuss the scope, you can use the request a quote form.