Türkiye

The Turkish Commercial Code No. 6102 (the Commercial Code) of 2012 (as amended) governs the corporate financial reporting, accounting, and auditing requirements in Türkiye. The Code outlines the preparation and publication of financial statements and provides legal backing to the standards that have been issued by the Public Oversight, Accounting and Auditing Standards Authority (KGK).

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 that are not considered PIEs 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. Differences between BOBI FRS and IFRS for small and medium-sized entities (SMEs) are outlined by the IFRS Foundation. While IFRS for SMEs is not adopted in the jurisdiction, the 2009 version has been translated into Turkish.

Act No. 6103 on the Application of the Turkish Commercial Code of 2011 (as amended) grants authority to the Council of Ministers to determine the scope of entities subject to mandatory audit requirements in Türkiye. In January 2013, the Council of Ministers enacted the Resolution on the Determination of Companies Subject to Independent Audit, which stipulates that listed companies, banks, insurance companies, and brokerages are required to have mandatory annual audits of their financial statements. The Council of Ministers also sets the audit requirements based on the size of entities and, in 2014 and 2015, significantly lowered previously established thresholds so that companies that satisfy at least two of the following criteria during two consecutive financial years are required to have mandatory audits: (i) total assets greater than or equal to 35 million Turkish Lira (TL); and/or (ii) revenue greater than or equal to 70 million TL; and/or (iii) greater than or equal to 175 employees.

Under the Code, the right to conduct statutory audits is granted to members of the Union of Chambers of Certified Public Accountants of Türkiye (TÜRMOB) who satisfy the requirements established by KGK. The Public Oversight, Accounting and Auditing Standards Authority’s Organization and Responsibilities Statutory Decree No. 660 also authorizes the KGK to issue auditing standards in compliance with international standards. As per those Laws, KGK has published national standards complying with ISAs issued by IAASB with small amendments to take into consideration the Turkish environment.

In Türkiye, the accountancy profession is regulated by law, specifically under Professional Law No. 3568 on Certified Public Accountancy and Sworn-in Certified Public Accountancy, enacted in 1989. This legislation defines and governs two primary categories of accounting professionals: Certified Public Accountants (CPA) and Sworn-In Certified Public Accountants (Sworn-In CPA).

Under Professional Law No. 3658, universities and the Turkish Higher Education Council determine the curriculum and undergraduate degrees for initial entry to the profession. Candidates for the CPA or Sworn-In CPA designation must (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 TURMOB 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. They must then join the Union of Chambers of Certified Public Accountants Türkiye (TÜRMOB) to practice in the jurisdiction. CPAs may keep books, prepare financial statements, conduct general audits—but not tax audits—and provide consulting services. Sworn-in CPAs may conduct tax audits and certify financial statements that are prepared for tax purposes and tax returns in addition to all the services provided by CPAs except bookkeeping.

KGK, in accordance with Statutory Decree No. 660, has been regulating and overseeing the audit profession since 2011. Candidates for authorization to perform audits of non-PIEs must meet the following requirements (i) complete an undergraduate or graduate degree in law, economics, public finance, business administration, public administration or political science or foreign universities approved by Turkish Council of Higher Education; (ii) acquire a CPA or Sworn-in Certified Public Accountant license; (iii) complete at least three years of practical experience in the field of audit; (iv) pass the audit exam for non-PIEs. Candidates for authorization to perform audits of PIEs must meet all the requirements listed above for non-PIEs, as well as a final examination on regulations of capital markets, banking, insurance, and private pension.

KGK’s oversight responsibilities include: (i) setting ethical, accounting, and auditing standards in compliance with international standards and best practices; (ii) carrying out examination, licensing, and registration for members of the profession who want to perform statutory audits; (iii) maintaining a public registry of auditors and audit firms; (iv) implementing investigation and disciplinary procedures for auditors; (v) monitoring continuing professional development requirements for auditors; and (vi) organizing a quality assurance review system.

Meanwhile, under the Professional Law No. 3658, TÜRMOB is authorized to (i) monitor compliance with initial and continuing professional development requirements for its members; (ii) translate and monitor ethical requirements; and (iii) investigate and discipline members for breach of rules and professional standards. KGK delegated the authority to conduct quality assurance (QA) reviews of non-public interest entities (PIEs) to TÜRMOB, under its oversight. All other TÜRMOB activities are subject to oversight by the Ministry of Treasury and Finance.

Finally, members of TÜRMOB with Certified Public Accountant (CPA) or Sworn-In Certified Public Accountant (Sworn-In CPA) titles may also choose to join Expert Accountants Association of Türkiye (EAAT) to obtain the Expert Accountant Certificate, which is a privileged qualification but does not give its holder any practicing rights.

In accordance with Statutory Decree No. 660, the Public Oversight, Accounting and Auditing Standards Authority (KGK) is the independent audit supervisory authority in Türkiye. KGK is a member of the International Forum of Independent Audit Regulators (IFIAR).

Expert Accountants Association of Türkiye (EAAT)

EAAT was established in 1942 as a voluntary membership organization for accountancy professionals that hold Certified Public Accountant (CPA) or Sworn-In Certified Public Accountant (Sworn-In CPA) titles from the Union of Chambers of Certified Public Accountants of Türkiye (TÜRMOB). It has no formal legal recognition or powers. EAAT awards the Expert Accountants Certificate to members, which is a privileged qualification but does not give its holder any practicing rights. EAAT and TÜRMOB cooperate on strengthening the accountancy profession in Türkiye. EAAT is a member of IFAC.

Union of Chambers of Certified Public Accountants of Türkiye (TÜRMOB)

TÜRMOB was established in 1989 as a mandatory membership organization for CPAs and Sworn-in CPAs, in accordance with the Professional Law No. 3658 on Certified Public Accountancy and Sworn-in CPA of 1989 (as amended).

Under the Professional Law No. 3658, TÜRMOB is authorized to (i) monitor compliance with initial and continuing professional development requirements for its members; (ii) translate and monitor ethical requirements; and (iii) investigate and discipline members for breach of rules and professional standards. KGK, the audit oversight entity, delegated the authority to conduct quality assurance (QA) reviews of non-public interest entities (PIEs) to TÜRMOB, under its oversight. All other TÜRMOB activities are subject to oversight by the Ministry of Treasury and Finance.

In addition to being a member of IFAC, TÜRMOB is a member of the Federation des Experts Comptables Mediterranean, Accountancy Europe, and the Edinburgh Group.

Türkiye has made significant progress in adopting sustainability standards, aligning with both national and international regulatory frameworks. As of January 1, 2024, sustainability reporting is mandatory for certain companies under the Türkiye Sustainability Reporting Standards (TSRS), introduced in December 2023. The TSRS includes two sections: TSRS S1, covering general provisions for sustainability-related financial information, and TSRS S2, focusing on climate-related disclosures. The regulation applies to financial institutions, large corporations meeting specific thresholds (e.g., over 500 million TRY in assets, 1 billion TRY in revenue, or 250 employees), and entities with significant economic ties to the EU. Despite notable progress, challenges persist, including alignment with EU requirements, data collection for Scope 3 emissions, and a limited pool of sustainability experts. To address these, Türkiye has provided transitional exemptions, such as waiving Scope 3 emissions reporting for the first two fiscal years and excluding comparative data requirements for 2024. Complementing these measures, a comprehensive Capacity Development Program has been launched, focusing on awareness, training, green collar workforce development, and quality assurance systems to support reporting. By aligning TSRS with global standards, such as the Global Reporting Initiative and the UN Global Compact, Türkiye enables businesses to comply with national and EU regulations while improving transparency, accountability, and risk management. The initiative enhances companies’ competitive advantage, brand reputation, and investor appeal, signaling Türkiye’s commitment to fostering a sustainable and globally integrated economy.

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).

TÜRMOB was also 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 almost fully in line with SMO 1 requirements due to legal limitations.

Inspections are carried out at least once every 3 years for audit firms which audit PIEs, and every 6 years for non-PIEs.

Lastly, relevant standards—ISQM 1, 2, and ISA 220 (revised)—have been adopted and published by the KGK.

Current Status: Adopted

Professional Law No. 3658 on Certified Public Accountancy (CPA) and Sworn-in CPA of 1989 (as amended) establish initial professional and continuing professional development (IPD and CPD respectively) requirements for CPAs and Sworn-in CPAs.

Under Professional Law No. 3658, universities and the Turkish Higher Education Council determine the curriculum and undergraduate degrees for initial entry to the profession. Candidates for the CPA or Sworn-In CPA designation must (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 TURMOB 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. They must then be members of the Union of Chambers of Certified Public Accountants Türkiye (TÜRMOB) to practice in the jurisdiction. TÜRMOB has set CPD requirements that are consistent with those specified by revised IES 7 (i.e., 120 hours over a 3-year rolling period).

Candidates for authorization to perform audits of non-PIEs must meet the following requirements (i) complete an undergraduate or graduate degree in law, economics, public finance, business administration, public administration or political science or foreign universities approved by Turkish Council of Higher Education; (ii) acquire a CPA or Sworn-in Certified Public Accountant license; (iii) complete at least three years of practical experience in the field of audit; and (iv) pass the audit exam for non-PIEs. Candidates for authorization to perform audits of PIEs must meet all the requirements listed above for non-PIEs, as well as pass a final examination on regulations of capital markets, banking, insurance, and private pension.

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.

Current Status: Adopted

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). According to the Law of Accountancy Profession Numbered 3568, TÜRMOB has authority to communicate both the TDSs and ISA to professional accountants.

KGK has published national standards complying with ISAs issued by IAASB with small amendments to take into consideration the Turkish environment.

Current Status: Adopted

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.

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.

Current Status: Adopted

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).

Current Status: Adopted

As noted by the Union of Chambers of Certified Public Accountants Türkiye (TÜRMOB) SMO Action Plan, the Public Oversight, Accounting and Auditing Standards Authority (KGK) does not maintain a separate investigation and disciplinary mechanism. However, under Decree Law No. 660 and Turkish Commercial Code (TCC), KGK has authority to initiate enforcement procedures based on the findings of its quality assurance review system. KGK is limited, however, to issuing a warning, suspending, or revoking audit practice rights. Given KGK's scope of authority over auditors, enforcement is only related to auditing. To include non-audit activities among these punishments, the case must be submitted to TURMOB's Discipline Board.

TÜRMOB has established an I&D system for all professional accountants in Türkiye in accordance with the Professional Law No: 3568 and Disciplinary Regulation. The current Professional Law does not allow for non-professional accountants to sit on the TURMOB Disciplinary Committee as required by SMO 6. As such, the current system of I&D does not completely align with SMO 6.

Current Status: Partially Adopted

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 accounting standards in Türkiye.

KGK requires (according to the decision of its Board published in the Official Gazette on 26/08/2014) 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 that are not considered PIEs 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.

Current Status: Adopted

Relevant Organizations

• Expert Accountants’ Association of Türkiye (EAAT)
• Public Oversight Accounting and Auditing Standards Authority (KGK)
• Union of Chambers of Certified Public Accountants and Sworn-in Certified Public Accountants of Türkiye (TÜRMOB)

Relevant Legislation

• Act No. 6103 on the Application of the Turkish Commercial Code of 2011 (as amended)
• Law of Certified Public Accountancy (CPA) No. 3658, 1989 (as amended)
• Turkish Commercial Code No. 6102 of 2012 (as amended)

Relevant Publications

• Altintas N. & Yilmaz F., The Accounting Profession: A Descriptive Study of the Common and Code Law Countries, 2012.
• EAAT, SMO Action Plan, 2021.
• International Forum of Independent Audit Regulators, Türkiye
• IFRS Foundation, IFRS Application Around the World?Jurisdictional Profile: Türkiye, December 2018.
• KGK, Introductory Booklet: Public Oversight, Accounting and Auditing Standards Authority, 2017.
• Organisation for Economic Co-operation and Development, OECD Policy Round Tables, Competition and Regulation in Auditing and Related Professions, 2010.
• TÜRMOB, SMO Action Plan, 2024.
• World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing, Türkiye, 2007.