Journal of Accounting and Management Information Systems (JAMIS)

Questions related to the new audit system of the Draft Turkish Commercial Code in EU -membership perspective

Supp/2006 ,   p564..572

Ă–zkorkut KORKUT

Keywords:   Turkey, Company Law, Europe, auditors, Oversight Board, auditing standards

In a short period of time Turkey would change Turkish Commercial Code (TCC) almost completely on the way of full EU-membership, in particular, to harmonize Turkish Law with the acquis communautaire pertaining to commercial enterprise, company, capital market, carriage, maritime and insurance law. It is not incorrect to say that the most significant change of the draft TCC is about the audit system of the limited-liability companies, especially joint stock companies. Related articles of the draft TCC would replace the old statutory audit system, which calls for non-specialist knowledge, with a requirement for all joint stock companies to have an audit conducted according to professional requirements, ethics and international auditing standards.The sweeping changes which would result from the enactment of the draft TCC would have a significant effect on financial reporting. Before coming into force of the draft TCC there are some major concerns about the degree to which the draft TCC appears to set detailed audit requirements instead of establishing an authoritative auditing standard setting authority. These concerns should have to be resolved in a short period of time before the enactment of the new TCC, not to undermine the overall objective of aligning Turkey with international standards and practices. In this paper I put forth these matters and try to express some considerations about a future oversight board and Turkish auditing standards by which institution have to be determined.