“The Decree numbered 8313 Amending the Decree regarding the Determination of Companies Subject to Independent Audit” published in the Official Gazette dated 6 April 2024 and numbered 32512 (the “Amendment Decree”) has amended the Decree numbered 6434 Regarding the Determination of the Companies Subject to Independent Audit published in the Official Gazette dated 30 November 2022 and numbered 32029 (the “Decree”).

The primary amendments are as follows:

1. Except for the companies falling within the scope of Annex (I) and Annex (II) of the Decree, the criteria for determination of the companies subject to independent audit have been revised as follows:

Criteria prior to the amendment:

 

Companies exceeding at least two of the below criteria for two consecutive accounting periods shall be subject to independent audit:

a)      Total assets worth of TRY 75 million or above,

b)      Annual net sales revenue of TRY 150 million or above,

c)      Number of employees being 150 or above.

 Criteria as per Amendment Decree:

 

Companies exceeding at least two of the below criteria for two consecutive accounting periods shall be subject to independent audit:

a)      Total assets worth of TRY 150 million or above,

b)      Annual net sales revenue of TRY 300 million or above,

c)      Number of employees being 150 or above.

2. Amendments on the criteria regarding the media service provider organizations:

The criteria applicable to the media service provider organizations included in Annex (I) of the Decree has been amended as further detailed below:

Criteria prior to the amendment:

 

Media service providers that have at least one of the following rights or licenses:

a)      the right to broadcast national television on land;

b)     satellite television broadcasting license; and

c)      cable television broadcasting license for more than one city.

 Criteria as per Amendment Decree:

Media service providers subject to Radio and Television Supreme Council’s oversight and supervision (pursuant to the Law on the Establishment and Broadcasting Services of Radio and Televisions dated 15/02/2011 and numbered 6112) which meet one of the following criteria:

a)   which have at least two of the following rights and licenses:

       i)           the right to broadcast national television on land;

      ii)           satellite television broadcasting license; and

    iii)           cable television broadcasting license for more than one province.

b)   which have the right to broadcast on demand on the internet.

3. Amendments on the legal entities deemed as outside the scope of the Decree:

  • The companies which do not enter within the scope of paragraphs 1 through 8 of Annex (I) of the Decree and which are subject to the Law on Privatization Practices; and
  • The companies which do not enter within the scope of Annex (I) or paragraph 3 of the Annex (II) of the Decree and whose 50% of share capital (at least) is directly or indirectly owned by the state, special provincial administrations, foundations established by law, and other public institutions and organizations will be deemed as outside the scope of the Decree.

4. The legal entities listed below have been added to Annex (I) of the Decree and therefore will be subject to independent audit as of 2024 accounting period, without being subject to any additional criteria:

  • Companies holding a license, certificate or authorization certificate from the Energy Market Regulatory Authority (“EMRA”), operating subject to the regulations of EMRA and have an independent audit obligation in accordance with the foregoing regulations;
  • Payment institutions and electronic money institutions; and
  • Public economic enterprises and their subsidiaries.

5. Legal entities removed from the scope of Annex (II):

  • Legal entities whose 25% of share capital (at least) is directly or indirectly owned by public professional organizations, unions, associations, foundations, cooperatives and their parent organizations; and
  • Legal entities which publish daily newspapers nationwide.

6. Enforcement

The Decree entered into force on the date of its publication and will be applicable for the accounting periods beginning on or after 01/01/2024.

Eren Üçok
Partner | [email protected]
Başak İslim
Senior Associate | [email protected]