The Audit of Companies in the Banking Sector and the audit of banks in Turkey are carried out by the audit within the body of the Responsible Board of Directors of banks. Sworn auditors of banks visit banks and check their accounts. They study the good and bad aspects of banks. At the end of their review, they prepare a report on their findings and recommendations.
Audit of Institutions in the Banking Sector
The task of evaluating the findings of the report and considering its recommendations was previously a matter that was under the jurisdiction of the Undersecretariat of Treasury, and now the BRSA. Now and formerly chartered bank auditors are part of the body responsible for the audit of banks. In general, there are problems with control. It would be unfair to assign all responsibility to one group.
The debate is whether control of banks should be given to a specific board. If the powers are distributed, the board is under the impression that they will be distributed. Those who advocate the transfer of powers to another dimension believe that bank audits will be based on more rational foundations.
Audit of Companies in the Banking Sector
The audit of banks in Turkey is carried out by the BRSA, the board responsible for auditing banks from the ground up. Banks’ certified accountants visit banks and check their accounts. They study the good and bad aspects of banks. At the end of the reviews, they write a report on their findings and recommendations.
The task of evaluating the results of the report and implementing the recommendations was formerly the task of the Undersecretariat of Treasury. Now it is the duty and responsibility of the BRSA. Supervision of banks is carried out by their sworn-in certified public accountants. As a rule, problems are detected in the audit.
What is discussed in the audit is whether the supervision of banks is given to the monopoly of a certain board. If the powers are distributed, the board is under the impression that they will be distributed. Those who advocate the transfer of powers to a different dimension believe that bank audits will be based on more rational foundations which is a fair point.
Independent Audit of Companies in the Banking Sector
Independent Audit Companies also supervise whether a Financial Report has been prepared in accordance with the Turkish Commercial Code and Banking Legislation.
Independent Audit Standards of Companies in the Banking Sector
Banks Prepare Financial Reports in Accordance with Turkish Accounting Standards. The issues of whether these Financial Reports are prepared in accordance with TFRS are also audited by the audit companies to which they have signed a contract. Only companies with CMB and BRSA certificates in the Banking sector can audit companies.
Internal Audit of Companies in the Banking Sector
Banks and other companies in the Banking Sector must establish an internal audit committee. The Internal Audit System and the Committee are required to audit companies and their branches on a regular basis.
Do Banks Have an Obligation to Prepare an Annual Report?
Banks are obliged to publish Annual Activity Reports in accordance with the Law No. 26333 dated 1.11.2006.
In March June September December and at the end of the year, Banks are required to prepare Financial Reports for 4 periods and all of them are audited by Independent Audit Companies.
Independent Audit of Companies in the Banking Sector
Independent Audit
It is the process of linking the appropriateness of the financial statements and other non-financial information of the enterprises within the framework of the determined financial reporting to the auditor’s opinion through the report.
The Purpose of the Independent Audit
The purpose of the independent audit is to audit the fair value of the operating and financial conditions of enterprises as a result of the examinations and evaluations of the independent auditors in charge and to illuminate information users in a proper way.
Frequently Asked Questions
Who audits companies in the Banking Sector?
We can divide the Audit of Companies in the banking sector into Public Audit and Independent Audit. T public Institutions CMB and BRSA audit companies within the scope of their own laws on whether they carry out activities in accordance with their own legislation. In addition, Independent Audit Companies also audit whether a Financial Report has been prepared in accordance with the Turkish Commercial Code and Other Legislation.
What audits are companies in the banking sector subject to?
Companies in the Banking sector Prepare Financial Reports in Accordance with Turkish Accounting Standards. The CMB, which has received authority in the sector of the audited company, and the companies with BRSA powers are auditing the issues of whether these Financial Reports are prepared in accordance with TFRS.
Is internal audit mandatory in companies in the banking sector?
Banks and other companies in the Banking Sector must establish an internal audit committee. The Internal Audit System and the Committee are required to audit companies and their branches regularly.
Are limited companies subject to audit?
Yes, of course. Independent Audit Companies also audit whether a Financial Report has been prepared in accordance with the Turkish Commercial Code and Other Legislation. However, Banks must exactly be established in the form of a Joint-Stock Company. Therefore, there are no Limited Companies in the Banking sector.
