Auditing at Turkish Capital Markets

Joint stock corporations and their subsidiaries are regulated and controlled by the Capital Markets Board of Turkey according to the Capital Markets Law with the aim to regulate and control the secure, transparent and stable functioning of the capital market and to protect the rights and benefits of investors with the purpose of ensuring an efficient and widespread participation to the development of the economy by the public through investing savings in the security markets.

LEGAL authorised by Capital Markets Law No. 2499 published in the Official Gazette number 17416 on July 30, 1981 for conducting an audit at the Turkish Capital Markets provides the broad range of reporting services in which it examines the compliance of the financial statements demanded by the Capital Markets Institutions or The Capital Market Board (CMB) of Turkey with Turkey’s generally accepted accounting principals and standards, and determines whether a true and fair representation, or as viewing fairly, of the financial performance, position and changes in financial position of an enterprise takes place in the financial statements by carrying out its audit scrutiny on firms’ ledger, books, financial records and documents.

Aforementioned services materialise at two stages;

1. Conducting the audits spreading throughout the current year
2. Inspecting the financial statements prepared half-yearly and yearly in a legal period of time, and preparing the audit reports.

Comparison to other bodies, The Capital Market Board’s understanding and applications is much closer to the world standards. It is therefore accelerating its studies to bring the contemporary applications, which are adopted by the nations that consider an accounting as a science, into force.

The best example to its determination of aligning its current exercises to the international level one by one is an adaptation of new Inflation Accounting and Consolidation Standards. We as Legal Yönet always assist and attend every stage of an implementation process of the inflation accounting on the financial statements in order to assure the continuous and faultless progress.

Parallel to applications of the inflation accounting, we undertake a consolidation of the financial statements of the publicly traded companies or the companies regarded as listed with their affiliates.

Current CMB accounting standards differ materially from IFRS (IFRS – formerly known as international accounting standards or IAS). However, on November 15, 2003 the CMB introduced a new set of accounting standards, which would replace the whole of the existing accounting regulations. These new standards very closely mirror International Financial Reporting Standards and became applicable after 1 January 2005 . For many companies, international financial reporting standards will mean fundamental changes – with potential impacts right across their business. Hence, we effectively provide you transition services with IFRS specialists and change management experts so as to ease you through making the change in your accounting systems to IFRS.