6 December 2022
The Presidential Decree No. 6434 on the Determination of the Companies Subject to Independent Audit (“Decree”) published in the Official Gazette dated 30.11.2022 and numbered 32029. With this Decree, the criteria for the companies to be subject to independent audit has been re- determined and the thresholds relating to the companies to be subject to audit have been changed.
The significant amendments introduced by the Decree are briefly summarized below.
The companies specified in Article 3 of the Decree are subject to independent audit within the framework of the provisions of the Turkish Commercial Code No. 6102 ("TCC") and the Statutory Decree No. 660 on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority.
Accordingly, the companies listed in the list (I) annexed to the Decree are subject to independent audit regardless of any criteria in terms of total assets, annual net sales revenue and number of employees. With the Decree, savings finance companies were added to the list (I) and to the companies subject to the regulation and audit of the Banking Regulation and Supervision Authority in accordance with the Banking Law No. 5411.
In addition to the companies listed in the list (I) annexed to the Decree, other companies that exceed the threshold values of at least two of the three criteria in paragraph (b) of Article 3 of the Decree in two financial years in a row are also subject to independent audit. The threshold values of these criteria have been amended via the Decree.
The companies covered in Article 4 of the Decree are excluded from the scope of the Decree and are not subject to independent audit. Pursuant to the newly added paragraph to the Decree, savings finance companies whose liquidation process is decided by the Banking Regulation and Supervision Authority within the scope of the fourth paragraph of the provisional Article 7 of the Law no. 6361 on Financial Leasing, Factoring, Financing and Savings Finance Companies, and whose liquidation process is carried out by the liquidation commissions appointed by the Savings Deposit Insurance Fund, have been exempted from independent audit.
The Decree will enter into force on 1 January 2023 by abolishing the 2018/11597 numbered and 26.03.2018 dated Council of Ministers’ Decree with the same name and subject.