Consequences of Not Having an Independent Audit

According to TCC Article 397, a company that is subject to independent audit but does not have it done:

Cannot distribute snow,
Cannot increase capital,
Capital cannot reduce,
Funding companies (creditors, etc.) request the independently audited financial statements of the company in order to make the credit decision. If independently audited financial statements are not provided, a loan cannot be obtained. Financial statements cannot be approved by a Financial Advisor or a Certified Public Accountant.
Although the company is subject to independent audit, the board of directors is responsible for any losses arising from failure to engage with any independent auditor.
In most public tenders, companies that do not submit independent audit reports cannot participate.
If the selected auditor is not announced on the websites of companies subject to independent audit, the members of the company’s board of directors will be punished with a judicial fine, pursuant to paragraph 12 of Article 562 of the Turkish Commercial Code.