Independent audits are performed by authorised audit firms; our role as an accountant is to prepare the company for audit, manage the move to the reporting framework and reconcile with the auditor. A company that does not notice it has come into scope faces consequences that cannot be fixed later.
Who is subject to audit in 2026?
Size test: companies exceeding two of the three thresholds below in two consecutive financial periods (periods starting 1 January 2026 and later):
| Threshold | Limit |
|---|---|
| Total assets | TRY 500 million |
| Annual net sales | TRY 1 billion |
| Employees | 150 |
To leave scope, a company must also be below the thresholds for two consecutive periods. Check: Audit threshold check
Sector test: listed companies and those subject to capital markets law, banks, insurance and reinsurance, pension, factoring, leasing, financing, payment and e-money institutions, capital markets institutions, licensed energy companies and public interest entities are audited regardless of size.
Appointing the auditor
- An audit firm authorised by the Public Oversight, Accounting and Auditing Standards Authority (KGK) is chosen.
- The auditor is elected by the general meeting before the end of the period to be audited; the election is registered and published.
- If not elected on time, the court appoints one on application by the board or a shareholder.
- Because of auditor independence, some other services the audit firm can provide to the same company are restricted.
What if the company is not audited?
The financial statements and annual board report of a company in scope that is not audited are deemed not to have been prepared (TCC 397). This is not a fine, but it cannot be fixed later; profit distributions, capital increases and general meeting resolutions based on those statements become questionable.
Reporting framework
| Framework | Who uses it? |
|---|---|
| TFRS (Turkish Financial Reporting Standards, same content as IFRS) | Public interest entities, those required, and voluntary adopters |
| BOBİ FRS (standard for large and medium-sized entities) | Most other audited companies |
| KÜMİ FRS | Small and micro entities outside audit (for framework-based reporting) |
| Tax records | Every company; the basis of the tax return |
Audited financial statements and tax records are not the same; we track the differences each year with a regular reconciliation. Financial reporting and internal control
Our readiness calendar
| When | Work |
|---|---|
| September–October | Scope check (two-year threshold test), auditor proposals, general meeting resolution |
| November–December | Interim audit: processes, internal control, accounting policies |
| January–February | Year-end close, stock count observation, confirmation letters, actuarial severance calculation, deferred tax |
| February–March | Audit fieldwork, adjusting entries, financial statements and notes |
| March | Audit report and ordinary general meeting (within 3 months of year end) |
Common mistakes
- Assessing thresholds on the last year only (two-year rule).
- Appointing the auditor after the period has ended.
- Recording severance only when paid; BOBİ FRS and TFRS require a provision. Severance calculator
- Not documenting differences between tax records and financial statements.
Sources
Turkish Commercial Code No. 6102 arts. 397–406; Presidential Decision on Companies Subject to Independent Audit (2026 thresholds); KGK regulations, TFRS, BOBİ FRS and KÜMİ FRS.