Union of Chambers of Certified Public Accountants of Turkey

Statutory Decree No. 660 requires the establishment and operation of a mandatory quality assurance (QA) review systems for all audits in Türkiye by the Public Oversight, Accounting and Auditing Standards Authority (KGK). Relevant standards for inspections — ISQM 1 and ISQM 2 — have been adopted and published by the KGK.

TÜRMOB was delegated the responsibility to conduct QA reviews for auditors of non-public interest entities (non-PIEs) under the oversight of KGK. TÜRMOB indicates in its SMO Action Plan that the QA review process for both PIEs and non-PIEs are mostly in line with SMO 1 requirements to the extent permitted by law.

Inspections are carried out at least once every 3 years for audit firms which audit PIEs, and every 6 years for non-PIEs. KGK reported to the IFIAR that 249 audit firms are subject to inspections carried out by the KGK.

Aside from implementing the QA review procedures, TÜRMOB focuses its efforts on supporting members with understanding the processes and requirements through guidance materials. For example, TÜRMOB prepared the Guide on Monitoring Practices, Professional Services and Quality for Accounting, Auditing and Consultancy Practices.

TÜRMOB reports it assists firms in understanding the objectives of quality management and implementing and maintaining appropriate systems of quality management. In addition to translating guidance material issued by IFAC, TÜRMOB provides its members with training, seminars, and conferences on quality management policies and procedures.

To align with the SMO 1 benchmark, TÜRMOB is encouraged to return to its previous practice of providing inspected firms with comprehensive final QA review reports [or explain why this change was necessary in the jurisdiction] and create a practice of having formal timelines for firms to address deficiencies identified during QA reviews.

Current Status: Sustain

TÜRMOB shares responsibilities with regulators in the jurisdiction, namely universities, the Turkish Higher Education Council, the Expert Accountants Association of Türkiye (EAAT), and the Public Oversight, Accounting and Auditing Standards Authority (KGK), regarding the adoption and implementation of accountancy education requirements.

In 2022, TURMOB completed a comprehensive review of the existing requirements for professional accountants in the jurisdiction against those of revised 2019 IES and confirmed alignment.

TÜRMOB is specifically responsible for offering the Certified Public Accountancy (CPA) and Sworn-in CPA designations and setting the IPD requirements. Candidates for the designations must first (i) obtain a bachelor’s level degree or higher in economics, law or management; (ii) complete a series of final exams (8 subjects) administered by TÜRMOB for CPAs, and inspected by the Public Oversight, Accounting and Auditing Standards Authority (KGK) for Sworn-In CPAs; and (iii) complete three years of practical experience before applying for membership. To maintain their membership, individuals must complete continuing professional development (CPD) requirements that are consistent with those specified by revised IES 7 (i.e., 120 hours over a 3-year rolling period).

TÜRMOB supports implementation of education requirements through the provision of various education, examination preparation, and continuing professional development programs and webcasts to its members. Notably, in June 2024, it developed a Sustainability Expertise Training curriculum which was launched in August 2024. The first training period, conducted between August 14-30, 2024, comprised 71 hours across 11 modules with 13 trainers. These sessions are scheduled to occur three times annually. TÜRMOB also developed an asynchronous education program for corporate sustainability reporting (also approved in 2024), consisting of a minimum of 80 hours over 12 modules with 6 trainers. These trainings are also planned to be held three times a year.

The institute updates members on any changes to its educational policies via the member journal.

Current Status: Sustain

The Public Oversight, Accounting and Auditing Standards Authority’s Organization and Responsibilities Statutory Decree No. 660 states that auditing and assurance standards are issued by the KGK under the title of Turkish Auditing Standards (TDSs). KGK has published national standards complying with ISAs issued by IAASB with small amendments to take into consideration the Turkish environment. According to the Law of Accountancy Profession Numbered 3568, TÜRMOB subsequently communicates both the TDSs and ISA to professional accountants.

To raise awareness of the standards, the TÜRMOB collaborates with academics to prepare and publish articles on ISA and related topics.

TÜRMOB also reports to support implementation of the standards through the education program that its Education and Training Center offers. The Center periodically updates the initial professional development and continuing professional development curricula to incorporate the latest requirements of ISA. Lastly, TÜRMOB reports to obtain comments from technical experts to comment on IAASB exposure drafts.

TÜRMOB has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

The Public Oversight, Accounting and Auditing Standards Authority’s Organization and Responsibilities Statutory Decree No. 660 provides authorizes the Public Oversight, Accounting and Auditing Standards Authority (KGK) to issue ethical standards in compliance with international standards for auditors. The KGK presently requires adherence to the 2022 International Code of Ethics Parts 1, 3, 4A, and 4B.

TURMOB, which is a mandatory membership organization for CPAs and Sworn-in CPAs, requires its members to adhere to the IESBA Code as issued by IESBA, which is the 2024 Handbook released in August 2024.

TÜRMOB supports implementation of the IESBA Code of Ethics by (i) publishing articles on ethics in TÜRMOB publications; (ii) disseminating Turkish translations of Handbooks provided by the KGK; (iii) designing and delivering training events, such as an annual Ethics Congress; and (iv) updating the education, examination, and training curricula to incorporate revisions to the IESBA Code of Ethics. TÜRMOB also supports member participation in the international standard-setting process by soliciting comments on IESBA Exposure Drafts.

TÜRMOB is encouraged to proactively engage with the KGK to discuss the benefits of adopting the latest IESBA Code of Ethics as issued by IESBA and can form collaborative working groups to align on ethical standards given that TÜRMOB is active in ensuring its members adhere to the latest requirements.

Current Status: Sustain

The Public Financial Management and Control (PFMC) Law of 2006 requires the Government of Türkiye to adopt international accounting standards in the public sector. The Central Government is implementing accrual-basis IPSAS, modified for the local context (IFAC, CIPFA).

While TÜRMOB has no direct authority for the adoption of public sector standards, it participates in the Public Accounting Standards Board of Turkey (DMSK) work program committee and encouraging the regulator to submit comments on Exposure Drafts issued by IPSASB. Additionally, it has been working to encourage relevant authorities to maintain an ongoing process to translate the most recent version of IPSAS into Turkish.

TÜRMOB has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.

Current Status: Sustain

TÜRMOB shares responsibility for investigation & discipline (I&D) procedures in the jurisdiction. TÜRMOB has established mechanisms for I&D for all professional accountants in Türkiye, which embody the requirements of SMO 6 and are in accordance with the Professional Law No: 3568 and Disciplinary Regulation. However, the current Professional Law does not allow for non-professional accountants to sit on the TÜRMOB Disciplinary Committee — a component of the SMO 6 benchmark. TÜRMOB reports to continue advocating for regulatory updates to address this. Furthermore, although tracking mechanisms exist, the system could benefit from more specific timeframe targets to expedite case resolution. In 2025, TÜRMOB plans to digitize all disciplinary investigations, which would enhance monitoring, bring efficiencies, and offer members the ability to track and review their cases.

TÜRMOB also reports that not all disciplinary decisions can legally be disclosed to the public. Significant disciplinary actions, especially those impacting public trust, are made public. In, 2024 it conducted awareness-raising workshops on disciplinary regulations.

TÜRMOB supports its members in navigating the I&D process through a variety of measures aimed at education, guidance, transparency, and structured processes. For example, it organizes regular workshops to educate members on I&D regulations and permit members to ask questions or concerns about the procedures. These sessions help members understand their responsibilities and the ethical standards they are expected to uphold. TÜRMOB provides detailed information on the types of misconduct that may lead to investigations, which is outlined in Professional Law No. 3568 and the Disciplinary Regulation. This helps members understand what actions may trigger disciplinary review and the standards they must meet. Guidance on the appeals process is also available, giving members clarity on their rights to contest decisions made at each stage.

Lastly, TÜRMOB publishes materials such as articles, FAQs, and brochures covering common ethical and disciplinary issues. Online resources through the e-Union system also allow members to access documentation related to I&D standards and disciplinary rulings.

TÜRMOB is encouraged to continue to engaging with the KGK to make amendments where possible that would strengthen the enforcement system to be aligned with the SMO 6 benchmark in full and therefore, strengthen the commitment to the public interest. TÜRMOB may benefit from establishing a formal agreement with KGK to create consistent I&D procedures across both entities, especially for cases involving audit-related misconduct.

Current Status: Review & Improve

The Public Oversight, Accounting and Auditing Standards Authority (KGK), which was established in accordance with the Public Oversight, Accounting and Auditing Standards Authority’s Organization and Responsibilities Statutory Decree No. 660, is responsible for setting corporate accounting standards in Türkiye.

KGK requires the application of Turkish Financial Reporting Standards (TFRS) which are fully converged with IFRS as issued by IASB for the financial statements of all public interest entities (PIEs).

Other companies are permitted to apply IFRS or the Financial Reporting Standard for Large and Medium Sized entities (BOBI FRS) established by the KGK. BOBI FRS is the financial reporting framework for entities which are not required to apply TFRS but are within the scope of entities subject to audit. There are differences between BOBI IFRS and IFRS for SMEs. IFRS for SMEs is not permitted; however, the 2009 version was been translated into Turkish and still available for reference.

TÜRMOB does not have authority for the adoption of IFRS but it does have an active role in the implementation process. TÜRMOB is involved in translating IFRS in accordance with the IFRS Foundation Translation Policy. It also participates in the international standard-setting process by providing comments on Exposure Drafts issued by the IASB.

TÜRMOB supports its members with the application of accounting standards by updating the education (IPD), examination, and training (CPD) curricula to incorporate new and revised Turkish Financial Reporting Standards. The TÜRMOB also notes it collaborates with academics to host events and publish articles and other material on the TFRS in TÜRMOB publications and on its website.

TÜRMOB is encouraged to continue to raise awareness of IFRS and emerging issues on adoption and implementation in the country. Additionally, TÜRMOB is encouraged to continue its strong efforts at education, training, and support to members in the application of the standards in practice. Finally, TURMOB is requested to consider to what degree promoting of IFRS for SMEs may be useful to the SME financial reporting environment in its country.

Current Status: Sustain