Financial Statements Audit

Briefly, what is the audit of financial statements?

Financial data produced by the systems used by companies for financial transactions serve as the most important element in the decisions to be taken by the data user and management. The transactions carried out by the company in its fields of activity can be multifaceted. For this reason, stocks, material resources, services received and provided, etc. movements; In order to be closely monitored, it must be evaluated using new methods and technologies.

The fact that financial statements are of great importance for the evaluations and decisions to be made requires that these tables be reliable. The measurement of trust is; This trust is the existence and functioning of information financial statements. Auditing financial statements by an independent institution and unit is a must to ensure this trust.

Purpose of Financial Statements Audit;

It is an audit performed to examine whether the financial statements of a company are prepared in accordance with predetermined criteria such as TFRS and IFRS. The aim of the financial statements audit is to reveal whether the financial statements comply with generally accepted accounting principles and legal regulations and whether the values ​​in these tables show the real situation of the company.

Why is Financial Statement Audit Done?

By clarifying the information contained in the financial statements by an independent auditor or institution, it provides guidance and assurance in decision-making for managers, investors, bankers and other stakeholders.

In summary, Financial Statement Audit;

It is the evaluation of financial statements through records and documents by applying audit techniques in a way that provides reasonable assurance of their accuracy, and the results are compiled into a report.

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.