The decision of the Council of Ministers regarding the companies subject to independent auditing has been amended.

Pursuant to such amendment, the companies which shall be subject to independent auditing shall be as follows:

Companies which on their own or together with their affiliated companies and subsidiaries, meet at least two of the following three conditions shall be subject to independent auditing as per the provisions of the Turkish Commercial Code numbered 6102 and the Statutory Decree on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority numbered 660:

  1. companies with total assets equivalent to or above 75 million TRY;
  2. companies with annual net sales revenues equivalent to or above 150 million TRY;
  3. companies with 250 or more employees.

In the event that companies exceed the limits of at least two conditions out of the above three conditions in two successive accounting periods, they shall be subject to independent auditing in the subsequent accounting period.

In the determination of whether at least two out of three conditions are exceeded, the financial statements of the preceding years (last two years) as prepared in accordance with the current legislation shall be taken into account in terms of the total assets and annual net sales revenue of the company and the average number of employees for the preceding years (last two years) shall be taken into account in terms of the number of personnel.

The aforementioned amendment entered into force on its publication date (14.03.2014) to be effective as of 01.01.2014.

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.