The Presidential Decision No. 6434 on the Determination of Companies Subject to Independent Audit (« Decision ») was published in the Official Gazette dated November 30, 2022, and numbered 32029 to replace and repeal the current Council of Ministers Decision No. 2018/11597 (« Repealed Decision ») and to be entered into force as of January 1, 2023.
The Decision regulates the procedures and principles regarding the companies subject to audit in accordance with Article 398 of the Turkish Commercial Code No. 6102 (« TCC »). Pursuant to the Decision, the following companies shall be subject to independent audit in accordance with the provisions of the TCC and the Decree Law on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority No. 660. The table below enunciates the differences between the Decision and the Repealed Decision.
| No | Company Type | Repealed Decision | Decision |
| 1 | Companies listed in Annex (I) | · No criterion has been foreseen.
|
· No criterion has been foreseen.
· In addition to companies listed in Annex (I) of the Repealed Decision, savings finance companies are also included within the scope. |
| 2 | Companies exceeding at least two of the following thresholds in two consecutive accounting periods | ||
| a) | Companies whose capital market instruments are not traded on a stock exchange or other organized markets but are considered publicly traded under the Capital Markets Law No. 6362 | · Total assets of TRY 15 million
· Annual net sales revenue of TRY 20 million · 50 employees |
· Total assets of TRY 30 million
· Annual net sales revenue of TRY 40 million · 50 employees |
| b) | Companies listed in Annex (II) | · Total assets of TRY 30 million
· Annual net sales revenue of TRY 40 million · 125 employees |
· Total assets of TRY 60 million
· Annual net sales revenue of TRY 80 million · 100 employees |
| c) | Companies that are not falling within the scope of (a) and (b) above | · Total assets of TRY 35 million
· Annual net sales revenue of TRY 70 million · 175 employees |
· Total assets of TRY 75 million
· Annual net sales revenue of TRY 150 million · 150 employees |
In addition to the above-mentioned differences, savings financing companies whose liquidation was decided by the Banking Regulation and Supervision Board within the scope of Provisional Article 7/4 of the Financial Leasing, Factoring, Financing, and Savings Financing Companies Law No. 6361, and whose liquidation process was carried out by the liquidation commissions appointed by the Savings Deposit Insurance Fund (SDIF), have also been excluded from the scope of the requirement of the independent audit by the Decision.
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