Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      TURKEY


    2. Name of member body:

      Or please specify name:



    3. Individual responsible for preparation:
      Dr. Ahmet Fettahoglu


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      11 / 1994



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      FCM; Federation des Experts Comptables Mediterraneans
      FEE; Federation des Experts Comptables Europeens
      SEEPAD; South Eastern European Partnership on Eccountancy Development



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: The Commercial Code
      b). the Enacting body: Enacted by the Turkish Parliament and enforced by the Minister of Justice
      c). date the Act or Code came into force: 07 / 1956


    25. How can IFAC obtain a copy of the Act or Code?
      TURMOB could provide a summarised English version of the Code.


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities The Commercial Code has a specific section for the accounting standards that are applied by all. Turkish Accounting Standards are to be applied
      Private companies See listed entities. Requirements are also applicable to very small companies provided that they are established in the form of a company rather than single proprietorship
      Governmental See listed entities.
      Not-for-profit See listed entities.
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities According to the new Commercial Code all these entities must have an audit. They should be audited by making use of Turkish Auditing Standards which are in conformity with ISAs. The Turkish Standards may bear trivial differences from ISAs taking into account the local conditions.
      Private companies See listed entities
      Governmental See listed entities
      Not-for-profit See listed entities
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:
      The audit reports prepared for banks are reviewed by another audit firm.


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Capital Market Law (Law No: 2499, July 1981)

    2. the Enacting body(ies)

      The Law is enacted by the Turkish Parliament and enforced by the Capital Market Board

    3. the latest amendment date?

      January 2002


    35. How can IFAC obtain a copy of the Legal authority?
      TURMOB could provide a copy.


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      They shall prepare financial statements, reports and information required by the Capital Markets Board to be disclosed in compliance with the form and principles to be determined and generally accepted accounting principles, definitions and standards.


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      They shall have the financial statements which are identified by the Capital Markets Board audited by independent auditing firms.


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      The audit reports for banks should be reexamined by another audit firm specified by the Banking Regulatory and Audit Board.


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      An audit firm could perform the auditing of a listed firm for a period of at most five years. At the end of five years of service the audit of that firm should be contracted to another audit firm. In order that the first auditing firm could resume the auditing services of that firm at least two years should elapse.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Directive 02/2003 Turkish Auditing Standards Board
      Other (please describe) Private companies Turkish Auditing Standards Board
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      TURMOB could provide a copy.

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Turkish Auditing Standards Board)


    44. For Turkish Auditing Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      An independent board established and sponsored by TURMOB.

      Additional detailed information about the Turkish accounting profession and TURMOB's roles and responsibilities can be viewed on TURMOB's website (English section) in the documents "Brief History of the Turkish Accounting Profession" and "Law of Independent Accountancy, Independent Accountants Financial Advisorship and Sworn-In Financial Advisorship".


      b. Name of standards

      Turkish Auditing Standards


    45. How many voting members does the standard-setting body have?
      15


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job from major sectors of the profession. 4 members are nominated by TURMOB, 4 members are nominated byy the Chambers of Sworn in CPAs, 5 members are nominated by the Chambers of CPAs and 2 members are nominated by TURMOB from among the academicians who have expertise on accounting and auditing.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Member body.


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      1 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      32,200 $ (For the time being it is sponsored by TURMOB.)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      1,550,000.0



    52. To what entity is the standard-setting body accountable?
      Board of Directors of TURMOB


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The proposed standards are issued as an exposure draft for comment.

      The final version of the auditing standards which have been set by taking into considerations put forward by the interested parties and the Board of Directors of TURMOB are issued.


    2. accessibility of meetings (i.e., public or private)

      The meetings are not accessible for the public. Only advisers could participate in the meetings while the draft standards are negotiated.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority is a must.

    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      20 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Directive 10/2001 Ethics Commission
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      TURMOB could provide a copy of.

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Ethics Commission)


    56. For Ethics Commission, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Ethics Commission is a task force of the TURMOB.

      The drafts of ethics standards are set by the Ethics Commission; however, in order for these standards to be binding and compulsory for the members of profession they should be approved by the General Council of TURMOB.


      b. Name of standards

      Code of Ethics


    57. How many voting members does the standard-setting body have?
      15


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Board of TURMOB


    61. What is the term of appointment for members?
      1 Year(s)


    62. For how many years has the standard-setting body been in existence?
      5 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Not separately allocated from the overall budget.

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?
      Council of the TURMOB


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      About six months

    2. accessibility of meetings (i.e., public or private)

      private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority of the General Council is required.

    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      15 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      Preliminary School - 8 years - compulsory
      Lycee - 3 years -
      College- University - 2-6 years -
      Post Graduate - Masters or Doctorate degree


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      There are three categories of accountants as it is defined in the Law No. 3568: Independent Accountants (IA), certified Public Accountants (CPA) and Sworn-in CPAs.

      There are two different types of Chambers in Turkey: Chambers for IAs and CPAs (70 Chambers) and Chambers for Sworn-in CPAs (8 Chambers).

      Additional detailed information about the Turkish accounting profession and TURMOB's roles and responsibilities can be viewed on TURMOB's website (English section) in the documents "Brief History of the Turkish Accounting Profession" and "Law of Independent Accountancy, Independent Accountants Financial Advisorship and Sworn-In Financial Advisorship"


      CPAs and Sworn-in CPAs are authorized to perform audits. They are authorized to perform private company audits as well as public company or entity audits. However the audit of listed companies could be performed by only Sworn-in CPAs. IAs are primarily accountants.


      Independent Accountants:

      - Either be a graduate of a vocational school in commerce or finance and be successful in the "A" "B" and "C" category evaluation examinations conducted upon their completion of their training with and under the supervision of a member of profession.
      - Or be a graduate of a 2 year high school and succeed in B and C category evaluation examinations,
      - Or be a graduate of a university and have a B.A. (Bachelor of Arts) degree in economics, law or management and be successful in C category of evaluation examinations.

      Certified Public Accountants:

      - Should be a graduate of a university and have a B.A. degree in economics, law or management and be successful in the proficiency examinations conducted by TURMOB after they have successfully completed their practical training lasting two years with and under the supervision of a CPA or Sworn-in CPA to be awarded a licence for "certified public accountancy".

      Sworn-in Certified Public Accountants:

      - After having at least 10 years of work experience as a certified public accountant and being successful in the proficiency examinations conducted by TURMOB, a CPA is awarded a licence for "Sworn-in Certified Public Accountancy".


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      At least vocational school for independent accountants and a four year university degree in the related fields or a master degree in the related fields for the non-related fields graduates of the universities for CPAs and Sworn-in CPAs.
      Professional examinations
      Independent accountants and CPAs should be successful in the proficiency examinations after they have successfully completed their practical training lasting 2 to 6 years. Sworn-in CPAs should be successful in proficiency examinations conducted by TURMOB after they have at least 10 years of professional experience as CPA.
      Practical experience
      As explained above.
      Final qualifying examination
      Each category of members of profession should have different sets of exams.
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The Accountancy Law No. 3568 specifies the educational requirements for each category of members of profession. A special commission of exams.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The examination commission consists of 7 members. 2 of these members represent the Ministry of Finance. 3 of the members are selected among 5 candidates proposed by the Higher Education Council, and the remaining 2 are selected by the Ministry of Finance among 4 candidates proposed by TURMOB.

    2. How many voting members does the relevant body(ies) have

      7

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      3 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      TURMOB can provide

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Accountancy Law No: 3568 sets out the requirement for auditors to be licensed through TURMOB.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      TURMOB


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      They should be awarded a licence as a CPA or Sworn-in CPA and be accredited by Capital Market Board and Banking Regulation and Supervision Agency



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government The "General Accounting Law" sets the accounting procedures and principles that should be followed in public sector.
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government Commercial Code
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      N/A

      b. Are the documents available in English?
      Yes   No



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Law No. 4487 12/1999 Turkish Accounting Standards Board
      Other (please describe) Private companies Law No. 4487 12/1999 Turkish Accounting Standards Board
      Other (please describe) Non-profit organizations Law No. 4487 12/1999 Turkish Accounting Standards Board
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      TURMOB could provide a copy.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Turkish Accounting Standards Board)


    95. For Turkish Accounting Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Through Law No: 4487 dated Dec. 1999 an addendum is made to the Capital Markets Law for the establisment of "Turkish Accounting Standards Board". The Board has an administrative and financial autonomy.

      b. Name of standards

      Turkish Accounting Standards


    96. How many voting members does the standard-setting body have?
      9


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The Board consist of 9 members: one member from each of the following entities:
      1.Ministry of Finance
      2.Ministry of Industry and Commerce
      3.Higher Education Board
      4.Undersecretariat of Treasury
      5.Capital Markets Board
      6.Banking Regulation and Supervision Agency
      7.Turkish Association of Chambers and Bourses (Exchanges)
      8-9. Two members from TURMOB one of whom is to be a CPA and the other is to be a Sworn-in CPA.

      The members should have university graduation in related fields and should possess at least 12 years of experience in such areas. The Board has made her first meeting on 7 March 2002.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Governmental agencies, universities and TURMOB - see Question 98.


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      3 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      The revenues of the Board is composed of 2 percent of TURMOB's annual earnings, copyright revenues from issued standards and other resources and contributions provided by the relevant entities.

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?
      Ministry of Finance


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      After the standards are finalised they are issued.

    2. accessibility of meetings (i.e., public or private)

      Provided that the majority of the Board members approve, the members of the working parties of the Board or experts from outside of the Board could be permitted to attend the Board meetings.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority approval is a must.

    4. other relevant due process activities

      The Turkish Accounting Standards Board meets upon the request of the Chairman or request of at least five members of the Board as it is deemed due, necessary, depending upon the work schedule.


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      15 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      The Capital Markets Board


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      The Law of Capital Markets Board No: 2499 establishes the responsibility. See response to question 108.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The Board has the responsibility to specify those audit firms that would be authorised to audit the listed companies.

    2. accounting and auditing standard-setting

      The Board sets the general procedures and principles that should be adopted by the audit firms when they are engaged in the audit of listed companies and contributes to the setting of accounting and auditing standards by the Turkish Auditing Standards Board and Turkish Accounting Standarts Board.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      The Board monitors the accuracy and completedness of the information disclosed and the compliance of the financial statements with the auditing standars of the financial statements prepared by listed companies. The auditing of the listed companies could only be performed by the audit firms that are authorised by the Capital Markets Board. The Board investigates the accuracy and correctness of the information disclosed in financial statements prepared on a quarterly, semi annually and annual basis.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      IMKB, Istanbul Stock Exchange Board



    Section 10B -- Stock Exchange
    IMKB, Istanbul Stock Exchange Board Details


    110. For IMKB, Istanbul Stock Exchange Board, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      The listed entities should comply with the principles and standards set by Capital Markets Board and IMKB.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Non-compliance may lead to notification, suspension of listing, penalties.

    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Banking Regulation and Supervision Agency aims at creating and maintaining an environment in which banks and financial institutions have a sound financial structure and viability in domestic and international markets. For this purpose the Agency scrutinizes the information and documents on banks and monitors whether financial statements are prepared in conformity with the accounting and auditing standards.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      The banks should prepare their financial statements in conformity with the accounting and auditing standards. And the audit reports should comply with the auditing standards.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The audit firms that contract the auditing of banks should comply with the standards set by the Agency.

    2. accounting and auditing standard-setting

      The Agency sets accounting and auditing standards related with the accounting and auditing services rendered in banks.

    3. review of financial statements prepared by listed entities

      The Agency scrutinizes and analyzes the information and documents prepared and disclosed by the banks and financial institutions that are subject to Banking Law.

    4. enforcement of accounting, reporting and auditing requirements

      The Agency enforces that the financial statements and information prepared by the banks and audit reports prepared by the auditing firms comply with the accounting, reporting and auditing requirements.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Banking Regulation and Supervision Agency


    116. What is the source of Legal authority of the regulatory authority(ies)?
      The Banks Law, No: 4389 and Revision; No: 4491 and No: 4672


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      The audit firms that contract the auditing of banks and financial institutions should comply with the accounting standarts set by the Agency.

    2. accounting and auditing standard-setting

      Issues standarts related with the accounting and auditing of banks.

    3. review of financial statements prepared by listed entities

      The Agency scrutinizes and analyzes the finanacial statements and information disclosed by the financial institutions that are subject to Banks Law.

    4. enforcement of accounting, reporting and auditing requirements

      The Agency enforces the compatibility of financial statements and audit reports with the accounting, reporting and auditing standards.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Prime Ministry, Undersecretariat of Treasury, Insurance Supervisory Office


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Insurance Auditing Law, No:7397


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      No direct responsibility

    2. accounting and auditing standard-setting

      Contributes to the setting of accounting and auditing standards.

    3. review of financial statements prepared by listed listed entities

      The Insurance Supervisory Office reviews the financial statements prepared by insurance companies and the audit reports prepared by the auditing firms on these companies.

    4. enforcement of accounting, reporting and auditing requirements

      The Office enforces the compatibility of the accounting and auditing procedures and financial statements and audit reports with the accounting, reporting and auditing stndards.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.


    122. What is the source of Legal authority of each regulatory authority?


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      However, audit reports prepared by an audit firm for a bank or insurance company are reviewed by another audit firm to assure the quality of the audit.



    125. Under what authority does the organization conduct the program of quality assurance review?


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?




    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      The Disciplinary Board of TURMOB consist of 5 members, those of Chambers of CPAs consists of 3 to 5 members depending upon the number of members of the Chamber.


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      5 members


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: They are nominated by the General Council


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The members of the Disciplinary Boards are nominated by the General Councils of TURMOB and Chambers for a period of 2 years.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The General Council of TURMOB and Chambers


    134. What is the term of appointment for members?
      2 Year(s)


    135. For how many years has the body been in existence?
      15 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      The Disciplinary Boards are sponsored by TURMOB and Chambers of CPAs.

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?
      TURMOB and the Chambers


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      15 Day(s)



     

     

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