About using the expression of independent audit in the title of the Inc. that the Certified Public Accountant (CPA) and Independent Auditor is going to establish.

QUESTION

I’m going to establish an incorporated company. We also have an independent auditor among our partners.

Can we use financial consultancy first and then independent audit in the title?

Is there anything else I should pay attention to when establishing a company in terms of chamber?

(12.11.2018 10:43)

ANSWER

1-You can use them.

2-There isn’t anything specific to pay attention.

Source: Ismmo
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

1-Who can work as auditor at corporates?
Auditor can be people or stock corporations composed of the people, authorized by public oversight, accounting and auditing standards authority and obtaining license according to the law of certıfıed publıc accountancy and sworn ın certıfıed publıc accountancy numbered 3568 and dated 01.06.1989.
When one of the below mentioned situations exist,  the ones working with  sworn financial advisor, professional accountant  or with the ones related to those, cannot work as audit in relevant companies.

Situations are as follows:
1.1- If auditor has a share in the company to audit,
1.2- If he is the worker or the director of the company to audit or had this title 3 years before his appointment as an audit,
1.3- If a legal entity appointed as auditor is the representative or the legal representative of the company whom he will audit or is a member of the board of management or has more than %20 shares of the company or is third degree kin to them.
1.4- If he has relations with the company to audit or has share more than %20 of the shares of the company to audit or work with the one of the shareholders of the company to audit,
1.5- If he helped to the company to audit on book keeping or regulating financial tables,
1.6- If he helped to the company in other way except for  book keeping or regulating financial tables,
1.7- If he works with an auditor  whose title taken away because of the reasons shown in 1.1 and 1.6,
1.8- If  more than %30 of his income comes from making money  out of auditing for the last five years, he cannot be an auditor.

2-What is the year condition for auditing?
If an auditor is chosen for 10 years to audit the same company he can’t audit it again unless 3 years pass. Accounting and auditing standards authority has the right to audit this situation.

3-CAN AUDITORS PROVIDE SERVICE WITH THE CMPANIES THEY AUDIT?
It is forbidden to provide service with the companies by the auditors except for  tax or tax audit services.

Source:Turkish Trade Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

1- HOW VOTING POWER IS CALCULATED IN LIMITED COMPANIES?
1.1- Voting power of limited companies is calculated according to join stock’s nominal par.
1.2- If higher amounts were not decided on corporate charters, each 25 Turkish lira gives righting vote.
1.3- However, corporate charters can restrict shareholders having more than one voting right.
1.4- Shareholder has at least one voting right.
1.5- If it is decided on corporate charter, written vote can be given.
1.6- Corporate charter can also issue voting right as voting right to each shareholder without depending on nominal par. In that case Shareholder’s minimum voting right cannot be less than the total voting right of the other shareholders.

2- IN WHICH CASES COMPANY’S PROVISIONS ARE NOT IMPLEMETED?
Company contract provisions are not implemented on the below mentioned conditions;
2.1- Auditors’ elections
2.2- Special Auditor elections for company’s management or auditing some departments of the company.
2.3- Making decision regarding opening a case

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Source: Turkish Trade Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Inspector issues a clear and explanatory report that shows financial tables about;
1.1- Type
1.2- Scope
1.3- Quality
1.4- Results.

2- Except for that, with a separate form, the accord of financial report with annual report that deals with the situation of company or community is evaluated together.

3- While inspecting, the inspector takes the financial tables into account. Firstly, the evaluation of the board’s decision will be explained in the report. Particularly, within the context of the inspection of company’s financial table, as well as the stamina of the company in the future and company’s’ financial situation will be analyzed.

4- On the main part of the inspection report; whether the way keeping account, financial tables, and community financial tables are in accordance with the provisions of financial reporting, and whether the explanations is made by the board within the context of inspections will be explained.

5- Moreover, whether accounting book is kept in accordance with account chart and whether company’s asset and books are reflected realistic, will be explained.

6 – Within the standardization of Turkish Accounting, whether company’s asset and financial profit is reflected realistic will be explained.

***Within the frame of inspection, if there is another inspection according to Turkish Trade Law, article number 398, the result will be shown another report.

7- Inspector sign the report and submit it to the board.

Source:Turkish Trade Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

The inspections, inquests and investigations are executed according to the inspection, inquest and investigation provisions of the regulations that must be implemented and the sanctions related to these provisions will be enforced.

2- WHAT SHOULD BE DONE WHEN EMPLOYERS GIVE FALSE INFORMATION DURING THE INSPECTIONS IN STATE AGENCIES?
In state agencies, all the inspections, examinations and control that the audit employees and the law-enforcement officers will make in their work place according to their own regulations, if it’s determined that the obligations in the scope of this Law are not fullfilled by foreign workers and the employers who employ foreign workers, the situation will be declared to the Ministry of Labor and Social Security.

3- WHO WILL ENFORCE THE ADMINISTRATIVE SANCTIONS ACCORDING TO THE INSPECTION REPORTS?
After the inspections and statements are made, according to the official and audit reports that were sent, the administrative sanctions within this Law will be executed by the Turkish Employment Agency’s provincial director.

Source: The Ministry of Labor and Social Security

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.