According to the Presidential Decree No. 6434, published in the Official Gazette No. 32029 on November 30, 2022; it has been decided to put into effect the Decision on the Determination of the Companies Subject to Independent Audit, as per the Article 397 of the Turkish Commercial Code No. 6102 (In Turkish).

Within the scope of the Turkish Commercial Code no. 6102, companies determined based on the Presidential Decree are included to the scope of independent audit which is carried out to ensure that the investment environments to be transparent and reliable, that the partners and third parties take sound decisions about the companies, and that allows the financial statements of the companies to be prepared in detail in accordance with the current financial reporting framework.

Companies Subject to Independent Audit;

1- Threshold values for companies whose capital market instruments are not traded in a stock exchange or other organized markets but considered publicly traded within the scope of the Capital Markets Law No. 6362 (In Turkish) dated December 6, 2012:

  • Total assets of 30 million TRY,
  • Annual net sales revenue of 40 million TRY,
  • Number of employees is 50.

2- Threshold values for companies specified in the attached list (II):

  • Total assets of 60 million TRY,
  • Annual net sales revenue of 80 million TRY,
  • Number of employees is 100.

3- Threshold values for companies that are not included to the above-mentioned scopes:

  • Total assets of 75 million TRY,
  • Annual net sales revenue of 150 million TRY,
  • Number of employees is 150.

Companies that exceed the threshold values of at least two of the redefined criteria in terms of total assets, annual net sales revenue and number of employees in two consecutive accounting periods will be subject to independent auditing as of January 1, 2023.

With the regulation;

4- Savings financing companies have been added to the attached list (I).

5- Companies exempted from independent audit pursuant to the regulations of the Energy Market Regulatory Authority have been excluded from the attached list (II).

6- The liquidation process of the companies; which was decided by the Banking Regulation and Supervision Authority within the scope of the fourth paragraph of the Provisional Article 7 of the Financial Leasing, Factoring, Financing and Savings Financing Companies Law (In Turkish) dated November 21, 2012 and numbered 6361, and the liquidation process is carried out by the liquidation commissions appointed by the Savings Deposit Insurance Fund; is exempted from independent audit.

Companies that exceed the threshold values of at least two of the redefined criteria in terms of total assets, annual net sales revenue and number of employees in two consecutive accounting periods will be subject to independent auditing as of January 1, 2023.

For companies subject to independent audit, threshold values determined with the cabinet decision no. 2018/11597 will be valid.

Relevant Official Gazette can be accessed from here (In Turkish).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.