Whether you are a multinational subsidiary, a domestically listed corporation, or a growing enterprise approaching statutory thresholds, a properly executed audit strengthens credibility, ensures regulatory compliance, and reveals opportunities for operational improvement. Celikel CPA delivers independent audit and assurance engagements aligned with International Standards on Auditing (ISA) and Turkish regulatory requirements.
✓ Licensed CPA Firm Authorized by Turkish Ministry of Finance
✓ Audits Conducted in Accordance with ISA and KGK Standards
✓ Full KVKK (Law No. 6698) and GDPR Data Protection Compliance
Auditing in Turkey has evolved significantly since the establishment of the Public Oversight, Accounting and Auditing Standards Authority (KGK) in 2011. Today, independent audits serve as a cornerstone of corporate governance, capital market integrity, and investor confidence across the country. For businesses operating in or entering the Turkish market, understanding when and why audits are required is essential for long-term success.
A well-conducted audit is far more than a regulatory checkbox. It provides management, shareholders, and external stakeholders with an objective evaluation of the accuracy and fairness of financial statements. This independent verification process supports sound decision-making and builds the trust that business relationships depend upon.
Financial reporting and audit engagement overview in Turkey
Turkey's drive toward greater transparency in corporate governance has expanded the scope of mandatory audits over the past decade. KGK regularly revises the size thresholds, bringing more companies into the audit requirement each year. Forward-thinking businesses opt for voluntary audits even before reaching these thresholds, recognizing the governance and credibility benefits that come with independent assurance.
The Turkish audit ecosystem is governed by a well-defined regulatory structure that aligns closely with international best practices. Understanding the key authorities and legal instruments is critical for any business operating in Turkey.
The KGK (Kamu Gozetimi Muhasebe ve Denetim Standartlari Kurumu) is the principal body responsible for setting auditing and accounting standards in Turkey [1]. It authorizes audit firms, oversees audit quality, and adopts ISA-based Turkish Auditing Standards (TDS). All statutory audit engagements must comply with KGK-issued standards.
The Turkish Commercial Code (Law No. 6102) [2] establishes the legal basis for mandatory independent audits. Articles 397 through 406 of the TCC define which entities are subject to audit, the qualifications required of auditors, and the legal consequences of non-compliance, including potential personal liability for board members.
Publicly traded companies listed on Borsa Istanbul are subject to additional audit requirements set by the Capital Markets Board (Sermaye Piyasasi Kurulu). CMB regulations require interim and annual audits, public disclosure of audit reports, and adherence to specific reporting timetables aligned with IFRS.
Banks, financial leasing companies, factoring firms, and other entities regulated by the BRSA (Bankacilik Duzenleme ve Denetleme Kurumu) are subject to enhanced audit requirements, including specific reporting templates, frequency mandates, and additional disclosures related to capital adequacy and risk management.
Companies meeting at least two of the following three criteria for two consecutive fiscal years are required to undergo an independent audit:
| Criteria | Threshold |
|---|---|
| Total Assets | 75 million TL |
| Annual Net Revenue | 150 million TL |
| Number of Employees | 150+ |
These thresholds are reviewed and updated periodically by the Council of Ministers upon KGK's recommendation. Certain sectors, including banking, insurance, capital markets, and energy, have separate and typically lower thresholds. Companies approaching these limits should begin audit readiness preparations in advance to ensure a smooth transition to mandatory compliance.
Celikel CPA provides a comprehensive range of audit and assurance services designed to address the diverse needs of businesses operating in Turkey. Each engagement is tailored to your industry, risk profile, and regulatory obligations.
Our core offering involves the independent examination of your financial statements (balance sheet, income statement, cash flow statement, and notes) to determine whether they present a true and fair view in accordance with the applicable financial reporting framework, whether TAS, BOBI FRS, or full IFRS. The engagement culminates in an auditor's report that provides reasonable assurance to shareholders and third parties.
We evaluate the design and operating effectiveness of your internal control environment, including authorization procedures, segregation of duties, IT general controls, and management oversight mechanisms. Our findings are documented in a detailed report that identifies control deficiencies, assesses their severity, and recommends practical remediation steps to strengthen your governance framework.
A compliance audit assesses whether your operations adhere to the specific laws, regulations, contractual obligations, or internal policies applicable to your business. This is particularly relevant for companies in regulated industries or those with obligations under Turkish tax legislation, labor law, environmental regulations, or sector-specific licensing requirements.
Our tax audit service involves a thorough review of your tax positions, declarations, and supporting documentation to assess compliance with the Tax Procedure Law and related legislation. We examine corporate tax, VAT, withholding tax, stamp duty, and transfer pricing arrangements, identifying exposures and recommending corrective measures before regulatory authorities intervene.
Service organizations that process transactions on behalf of clients, such as payroll providers, data centers, and financial intermediaries, often need to demonstrate the reliability of their controls. We conduct ISAE 3402 (International Standard on Assurance Engagements) examinations resulting in Type I or Type II SOC reports that your clients and their auditors can rely upon.
When a standard financial statement audit does not fit the requirement, we perform special purpose engagements. These include audits under specific contractual clauses (grant audits, royalty audits), audits of single financial statements or specific elements, and agreed-upon procedures engagements requested by investors, courts, or regulatory bodies.
We assess the integrity, security, and reliability of your IT infrastructure as it relates to financial reporting. This includes ERP system controls, database access management, change management procedures, backup and recovery processes, and cybersecurity posture. IT audit findings are critical for supporting the overall financial statement audit opinion.
A performance audit goes beyond financial accuracy to evaluate the economy, efficiency, and effectiveness of your operations. We analyze resource utilization, process throughput, cost structures, and key performance indicators to identify areas where management decisions can yield measurable improvements in productivity and profitability.
Internal control and assurance engagement process overview
Celikel CPA follows a structured, six-phase methodology designed to deliver thorough audit coverage while minimizing disruption to your daily operations. Each phase builds upon the previous one to ensure a comprehensive and efficient engagement.
We begin by understanding your business model, industry context, organizational structure, and reporting obligations. This phase includes setting the audit scope, establishing materiality thresholds, assembling the engagement team with relevant industry expertise, and agreeing on timelines and deliverables with your management.
Through inquiries, analytical procedures, and walkthroughs, we identify and assess the risks of material misstatement at both the financial statement and assertion levels. This includes evaluating your internal control environment, understanding key accounting estimates, and mapping risks to specific audit responses.
Our audit team performs substantive testing, tests of controls, and detailed transaction testing across material account balances and transaction classes. Procedures include confirmations with third parties, physical inspections, recalculations, and document examination. We coordinate closely with your finance team to ensure minimal operational disruption during this phase.
Audit evidence is aggregated, evaluated for sufficiency and appropriateness, and reviewed by senior engagement personnel. Identified misstatements are assessed against materiality thresholds, and findings are discussed with management for potential adjustments before the final report is drafted.
We issue the independent auditor's report expressing our opinion on the financial statements. Alongside the formal report, a management letter is prepared detailing internal control observations, process improvement recommendations, and any significant matters identified during the engagement. Reports are delivered in Turkish and English as required.
After report issuance, we support your team in addressing audit findings and implementing recommended improvements. For recurring engagements, we conduct a post-audit debrief to refine the approach for the following year, ensuring continuous improvement in both audit efficiency and your internal processes.
Choosing the right audit partner is a decision that directly impacts the quality of your financial reporting, the strength of your compliance posture, and the value you derive from the audit process itself. Celikel CPA combines deep local expertise with adherence to international standards, delivering audit engagements that meet the expectations of both Turkish regulators and global stakeholders.
Our team holds professional qualifications recognized under Turkish law (SMMM/YMM) and maintains up-to-date knowledge of KGK auditing standards, Turkish Commercial Code requirements, and Tax Procedure Law provisions. At the same time, our audit methodology aligns with ISA and IFRS, ensuring that engagement outputs are recognized and accepted by international parent companies, foreign investors, and cross-border regulatory bodies.
All audit communications, working papers, and deliverables can be prepared in both Turkish and English. This bilingual capability is essential for foreign-owned subsidiaries, multinational group audits, and companies reporting to English-speaking boards or investors. Our team also supports reporting in additional languages upon request.
Effective audits require an understanding of industry-specific risks, accounting practices, and regulatory frameworks. Celikel CPA has developed focused expertise across key sectors of the Turkish economy:
| Industry | Key Audit Focus Areas |
|---|---|
| Manufacturing | Inventory valuation, cost accounting, fixed asset impairment, production cycle controls |
| Technology | Revenue recognition (SaaS/license models), R&D capitalization, IT general controls |
| Retail | Revenue cut-off, inventory shrinkage, lease accounting (IFRS 16), multi-location controls |
| Financial Services | Expected credit loss provisioning, regulatory capital, fair value measurements, BRSA compliance |
| Healthcare | Revenue cycle audits, pharmaceutical inventory controls, regulatory compliance, patient data privacy |
| Real Estate | Investment property valuation, construction contract accounting, percentage-of-completion methods |
We recognize that an audit should add value beyond the statutory requirement. Our engagement teams maintain open communication throughout the process, provide timely updates on findings, and work collaboratively with your finance department to resolve issues efficiently. Every engagement is overseen by a senior partner who serves as your direct point of contact, ensuring accountability and responsiveness at every stage.
Audit engagements often reveal areas where additional professional support can strengthen your operations. Celikel CPA offers a full suite of services that integrate seamlessly with our audit practice:
From statutory bookkeeping to TAS/IFRS-compliant financial statement preparation, our accounting services ensure your financial records are audit-ready at all times, reducing preparation efforts and audit adjustments.
Our tax services team works alongside our auditors to ensure tax provisions, deferred tax calculations, and transfer pricing documentation are properly supported and defensible under scrutiny.
For businesses entering the Turkish market, our company formation services provide end-to-end support from entity selection and registration through to establishing the accounting and governance structures that facilitate clean audits from day one.
Our payroll services ensure that salary calculations, SGK premium declarations, and employment-related liabilities are accurately reflected in your financial statements and withstand audit testing procedures.
Engaging Celikel CPA for multiple services creates natural synergies. Our consulting and financial consultancy teams coordinate with our audit professionals to provide a unified perspective on your financial health, compliance status, and growth strategy, all while maintaining the independence required for statutory audit engagements.
The audit standards, regulatory requirements, and legal obligations referenced on this page are grounded in the following official Turkish and international frameworks: