Implications of the 2025 Decision on Amending the Criteria for Independent Audit in Turkey

Implications of the 2025 Decision on Amending the Criteria for Independent Audit in Turkey should be thoroughly kept in mind by corporate managements. Criteria for Independent Audit in Turkey has been declared in the Official Gazette dated 1 May 2025 and numbered 32887. All business lawyers should analyze the implications of the regulatory change.

Introduction

Under Article 397 of the Turkish Commercial Code numbered 6102, companies designated by the President are subject to independent audit. The present article will outline the implications of the amendment and evaluate its relevance for corporate lawyers and company stakeholders.

What is the importance of criteria for independent audit in Turkey corporate governance?

Corporate governance encompasses rules, practices, and processes guiding proper management and oversight of a company. Corporate governance encompasses the rules, practices, and processes that guide a company’s management and oversight. Typically, a company’s board of directors holds the responsibility for these activities, which include organizing senior management, overseeing audits, and managing board and general assembly meetings according to both national and international standards. The advancement of criteria for independent audit in Turkey paves the way for obtaining transparency, accountability and clarity for a good governance of the companies.

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What is the meaning of independent audit and what is the relavence with criteria for independent audit in Turkey?

An independent audit serves as a cornerstone of corporate transparency and accountability. The primary purpose of independent audit is to enhance transparency and bolster investor confidence in the Turkish investment environment. Additionally, it aims to enable company shareholders and third parties to make more accurate and informed decisions regarding the companies in question. According to Paragraph 1 of the Article in question, the financial statements of joint stock companies and groups of companies that are subject to audit shall be audited by the auditor in accordance with the Turkish Auditing Standards, which are compatible with the International Standards on Auditing and published by the Public Oversight, Accounting and Auditing Standards Authority.

What are the Implications of the 2025 Decision on Amending the Criteria for Independent Audit in Turkey?

The main Presidential Decree was circuited in the Official Gazette dated 30 November 2022 and numbered 32029. The Decree enumerates the company types that are subject to independent audit. Those companies are categorized into two main lists.

Nonetheless, the monetary threshold has been updated through a new amendment. The 2025 Decision on Amending the Criteria for Determining Companies Subject to Independent Audit has been declared in the Official Gazette dated 1 May 2025 and numbered 32887. The new Decision increased monetary thresholds.

New thresholds are addressed as follows:

The thresholds for companies listed in Annexed List II will be

• Total assets of TRY 120 million
• Annual net sales revenue of TRY 150 million
• Number of employees: 100

The thresholds for Companies other than those listed above will be

• Total assets of TRY 300 million
• Annual net sales revenue of TRY 600 million
• Number of employees: 150

Determining whether your company falls under these new audit criteria is a critical compliance matter. This is just one aspect of maintaining a robust corporate legal structure. For expert guidance on all matters of corporate governance, from board resolutions to shareholder agreements, we invite you to explore our comprehensive business and corporate law advisory services.

Conclusion
Given above-mentioned analysis, it becomes clear that Implications of the 2025 Decision on Amending the Criteria for Independent Audit in Turkey should be thoroughly absorbed by companies, enumerated in the relevant regulations. The 2025 Amendment represents a significant regulatory change in Turkey’s corporate landscape. All affected companies should carefully assess their compliance obligations under the revised thresholds. For business lawyers and compliance officers, this change reinforces the importance of regular regulatory monitoring. There is no doubt that the new revision aims at enhancing transparency and efficiency by strengthening corporate governance on the basis of an effective audit mechanism.