With the growth in financial markets and globalization as a whole, The Turkish Commercial Code which has been in regulation since January 1st 1957 is now dated and a new revised Commercial Code is on its way.
The new Commercial Code has been designed to create harmony between the Turkish markets, the European Union and international market regulations. The Code has been in negotiation at the Grand National Assembly of Turkey since November 2008 but has been delayed due to various reasons.
The new Commercial Code also encompasses companies’ corporate governance. With the new code modern corporate governance practices are enforced, honesty and transparency are a must and corporate management’s liability is increased.
For a countries capital markets to strive in an international level, the country must be able to attract foreign investment. To achieve this, firms must prepare their financial statements and reports according to Turkish Accounting Standards and Turkish Reporting Standards which are harmonious with the International Accounting Standards and International Financial Reporting Standards.
With the new Commercial Code, the auditing profession and the auditor gain importance. For companies with limited capital 2 CPA’s and 2 Sworn CPA’s are assigned for auditing. For larger companies and public companies auditing firms are assigned for auditing.