Companies, that meet the conditions (revised every year) and that are announced especially (such as banks, insurance companies) are subject to independent audit. Companies which are subject to independent audit are obliged to prepare financial statements in line with Turkish Financial Reporting Standards (adopted from IFRS) announced by Public Oversight Accounting and Auditing Standards Authority (KGK).
A statutory audit is required when 2 out of the following 3 criteria are met:
1. Annual turnover > TL 75 million;
2. Total assets > TL 30 million;
3. Number of employees > 175
Tax audits are generally performed by Ministry of Finance in randomly basis, however, companies can work with independent sworn accountants authorized by state. Tax audits are performed on legal books prepared in accordance with Turkish Accounting Standards.