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Information about the General Assembly should be elected by the Independent Auditor

Information on the Independent Auditors' General Assembly
August 21, 2015

Turkey Chambers and Stock Exchanges Union through our Chamber transmitted Public Oversight Accounting and Auditing Standards Agency 14.07.2015 date and 74578864-622.02.E.1357 numbered writings, 6102 the Turkish Commercial Code (TCC) independently by companies that are subject to independent audit in accordance with It has been stated that the following issues related to the selection of the auditor and the audit contract should be taken into consideration and compliance with the legislation and implementation should be directed.

In Article 399/1 of the TCC, the independent auditor will be elected by the general assembly of the company, except for the exceptions stipulated in Article 408/2, the election of the independent auditor is among the non-transferable powers of the general assembly; It was reported that the decisions regarding the transfer of the law were superstitious.

In this context, the companies registered in the Chambers under the umbrella of the Union;

ü It is required that the independent auditor should be elected by the general assembly of the company within the framework of the provisions of the above-mentioned Law and this authority is an inalienable authority,

ü While the independent auditor should be elected by the general assembly of the company, it is contrary to the above provisions of the TCC and that the election of the general assembly directly by the board of directors without a resolution in this direction and making a contract with it will be superstitious,

ü Supervision performed in accordance with the superstitious contract cannot be accepted as a compulsory audit and therefore compulsory audit within the scope of TCC shall not be performed,

ü In this case, the unaudited financial statements and the annual activity report of the board of directors shall be in an unedited provision, in other words, superstition, in accordance with the second paragraph of Article 397 of the TCC; (such as profit distribution, capital increase-reduction, submission to tax returns, submission of credit documents, approval by YMM and SMMM, etc.).

issues to the knowledge and attention of our members.