Which Companies Are Subject to Independent Audit?

The companies subject to independent audit are set out in Article 3 of the Decision on the Determination of Companies Subject to Independent Audit dated 26/03/2018 and numbered 2018/11597 (the Decision), published in the Official Gazette dated 26/05/2018, No. 30432. The Decision divides the companies subject to audit into 4 groups.

Group 1: Companies subject to audit regardless of any criteria (companies listed in List I annexed to the Decision)

Group 2: Companies in List II annexed to the Decision that, alone or together with their subsidiaries and associates, meet at least two of the following criteria in two consecutive financial periods:

• a) Total assets of TRY 30 million or more,
• b) Annual net sales of TRY 40 million or more,
• c) 125 or more employees.

Group 3: Companies whose capital market instruments are not traded on an exchange or other organised market but which are deemed publicly held under Capital Markets Law No. 6362 dated 6/12/2012 and that, alone or together with their subsidiaries and associates, meet at least two of the following criteria in two consecutive financial periods:

• a) Total assets of TRY 15 million or more,
• b) Annual net sales of TRY 20 million or more,
• c) 50 or more employees.

Group 4: Other companies not mentioned above that, alone or together with their subsidiaries and associates, meet at least two of the following criteria in two consecutive financial periods:

• a) Total assets of TRY 35 million or more,
• b) Annual net sales of TRY 70 million or more,
• c) 175 or more employees.

Note: These are the thresholds of the 2018 Decision; the thresholds have since been updated. For the current thresholds, see our article on the criteria for 2026.