Statutory and voluntary independent audit in Turkey

Who performs the audit

According to KGK, independent audits are carried out by holders of an SMMM or YMM licence who are authorised by KGK. The auditor must be independent of the company. That is why the engagement and audit opinion remain the responsibility of the authorised independent auditor. Our role is to prepare the company and coordinate the agreed work.

Statutory audit

A company must be audited when current rules bring it within scope. The criteria are revised from time to time, so we do not publish thresholds: whether they apply to your company is checked against current official sources at the time of the enquiry.

• Check whether the obligation applies to the company for the period.
• Agree a timeline: period close, financial statements and the auditor's fieldwork.
• Prepare the reconciliations and records auditors typically request.
• Organise responses to auditor queries and corrections of accounting errors found.

Voluntary audit

A company may commission an independent audit without being required to, for example for an investor, a bank, a buyer or a parent company. It is still a regulated independent audit under the standards, not a bookkeeping check: an authorised auditor performs it, and KGK's guidance addresses voluntary audit reports too.

• Define who needs the report, why, and which statements are audited.
• Agree the engagement scope and timing with the auditor.
• Get the books and records ready before fieldwork starts.

Audit versus company checkup

Our checkup is our own review of a company's books, records and risks for the owner. It is not an audit, gives no opinion on the financial statements and does not replace one. An audit is an independent examination ending in the auditor's opinion. A checkup can be useful before an audit to find problems early.

How preparation works

A typical sequence:

• Describe the company, period and purpose of the audit.
• Assess readiness: reconciliations, balances, records for major transactions.
• Select or agree an independent auditor; the auditor decides whether to accept the engagement.
• Support the company during fieldwork and supply requested materials.

What we need to get started

For an initial assessment:

• Legal form, period and purpose of the audit.
• Who keeps the books and whether the period is closed.
• Any previous audit and its outcome.
• Who requires the report: law, investor, bank or parent company.

Not included

RelocationTR does not:

• Perform the audit or sign the audit report.
• Guarantee any particular type of opinion.
• Prepare records that retroactively change the facts of transactions.

Pricing factors for preparation

The auditor's fee is agreed with the auditor. The cost of our preparation work depends on:

• The state of the books and the reconciliations required.
• Volume of transactions, inventory and fixed assets.
• Related-party and cross-border transactions.
• The deadline for the report.