Quo vadis accounting and auditing in Turkey (original) (raw)
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2016
This paper focuses on the historical developments of independent auditing and the audit profession in Turkey. The study will also discuss the pros and cons of the currently expanding scope of the independent audit, under laws and regulations like the Turkish Commercial Code, amongst others. The first independent auditing activities to emerge in Turkey were around the 1960s and were for various reasons, such as the country benefiting from foreign credit sources. The first auditing company to open in Turkey was Arthur Andersen, in 1975. The first comprehensive regulations concerning auditing in capital markets entered into force in 1987 and were made by the Capital Markets Board (CMB) and the Regulations on External Auditing in the Capital Market. Moreover, the basic principles and rules related to auditing were arranged with Communiques and entered into force in 1987 and 1988. It is understood that the development of independent auditing activities occurred as a natural consequence o...
Audit and Oversight of Audit in terms of Commerce Law of Turkey
2011
While the rapid change brought by globalization of the economic life are enhancing world-wide the need for reliable and transparence information, the preparation of financial statement according to these two factors depends on establishing a unity between reporting standards and auditing applied around the world. Since 2005, stock market companies have started mandatory application of Turkish Accounting Standards (TASs), which is published in accordance with the International Financial Reporting Standards (IFRSs). Banking Regulation and Supervision Agency (BRSA) and Capital Markets Board (CMB) have taken very significant steps towards implementation of independent audit. A new Draft Turkish Commerce Law (TCL), as a replacement of the current TCL, has been prepared and it is now underway of becoming law. Moreover, according to draft TCL, Turkish Audit and Assurance Standards Board should be established. All of these developments perform with the object of secure transition from a tax...
External Auditing in Turkey: A Critical and Comparative Analysis of the New Law
European Business Organization Law Review, 2015
Independent external auditing has recently received a great deal of attention, not only in the United Stated and in Europe but also everywhere else in the world, including in emerging markets such as Turkey. Turkey, as a candidate for European Union (EU) membership, has launched a number of company law reforms in the field of external auditing. This article presents the audit market structure in Turkey alongside the development of the laws on auditing. As a main contribution, this article presents a critical comparative discussion of the recent external auditing reforms by way of examining the related provisions of the new Commercial Code and the Capital Markets Law. The article also submits some policy recommendations , in particular on the establishment of the public oversight body and auditor liability rules.
The Evolution of Turkey’s Accounting and Auditing System on the Way Towards the European Union
Journal of Interdisciplinary Economics
Turkey has a relatively short history of accounting in the modern sense. However, it has been rapidly developing since the 1980s in reference to accounting education, laws and institutions. Following the establishment of the Turkish Republic in 1923, a state oriented policy was initially implemented, followed by the experimentation of a mixed economic model after the mid-1940s and the imposition of a more liberal economic policy after the 1980s. The latter alterations have naturally increased the amount of international capital movements into Turkey and thus the portion of foreign capital has increased. As a result of these developments, reliable, accurate and comparable financial information has gained importance. Today, Turkey needs to prepare the required institutional and legislature system in order to better maintain the growing international financial relationships. Besides needing to integrate within the world, Turkey being in the process of gaining EU membership has brought ...
European Accounting Review, 1995
Turkey is a developing country in the Middle East, and is attracting an increasing number of foreign investments and joint ventures. However, the Turkish accounting system is not one of the topics that is studied in detail, the language barrier perhaps being the main reason. As the amount of foreign investment and the number of joint ventures increase and the Turkish stock market develops, a new responsibility will fall on accountants to disclose and discuss the current accounting system in Turkey. This paper attempts to fill this gap by describing the current accounting system and state of the profession in Turkey.
THE DEVELOPMENT OF ACCOUNTING PRACTICES IN TURKEY
Türkiye'de, Cumhuriyet'in kuruluşundan 1950'li yıllara kadar ekonomik ve siyasi yapıdaki değişimeye paralel olarak muhasebe alanında çeşitli değişimler olmuştur. Bu değişimler, çalışmamızda özel kesim muhasebe uygulamalarındaki
The change on the foundations of the Turkish accounting system and the future perspective
Critical Perspectives on Accounting, 2009
Accounting is a social construct and shaped by the society in which it operates. Needs of society are the most important influencing factors in the development of accounting in a country. Though in today's open system societies, the change in the accounting is inevitable, it should not be forgotten that accounting is not only a practice but also a discipline which has got theoretical and historical backgrounds. In this regard, this paper notes the changes in Turkish accounting system from the theoretical and historical perspectives.
THE DEVELOPMENT OF ACCOUNTING PRACTICES IN TURKEY FROM 1923 TO 1950
In Turkey, from the establishment of the Republic to the early 1950s, there have been several changes in the accounting field in parallel to the changes of the economic and political structure. In our study, these changes were examined by including the development process of private sector accounting practices. The accounting practices, which were influenced by the German Commercial Law, was focused on the firm’s account keeping practices and profit calculation and concentrated on the organization of the balance sheet and income statement, at the beginning of the Republic years. In the early years of the Republic, applications were assessed within the scope of revenue and expenditure, while in the later years, depending on the changes in the production system, its scope has broadened and sub-systems of accounting, such as cost and management accounting, have emerged. For the period covered by this study, the most important improvement of the cost accounting practices were certainly the studies on the cost calculations at Sümerbank. The techniques, which were used in the cost distribution, were the same as today’s while distributing costs in this institution. The objective to be reached in this study is to introduce the changes in accounting practices starting from the years of the establishment of the Republic to 1950. In this context, the subject of this study is to evaluate the financial, cost and management accounting practices of that period.
The development of accounting as a scientific discipline in Turkey
International Journal of Critical Accounting, 2014
The aim of this study is to investigate the development of accounting as a scientific discipline in Turkey. In the Ottoman State (Turkey has historically deep-rooted ties), the accounting system developed within the context of the importance attributed to personal law, emanet and zakat. Accounting in the private sector did not develop, double-entry bookkeeping method was only introduced in 1879, and governmental accounting was based on stairs method. The development of accounting as a scientific discipline in Turkey in the light of the developments in the economic system, political, legal, educational, taxing and occupational activity domains, can be divided into three periods: the periods of 1923-1950, 1950-1985, and 1985 and later. It can be summarised that the development of accounting in Turkey, as education, practice or scientific discipline, has been heavily influenced by the western countries (successively French, Germany, and the UK-USA) as a result of the economic and political ties over the past two centuries. After 1980 when Turkish economy was opened to the international markets and when accounting adapted itself to this, the structure and development of accounting started to be shaped not by local developments but by international developments.