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of the audit provisions pursuant to the understanding of electronic
transparency in the New TCC. The transactions concerning the termi-
nation of a company and lastly regulatory transactions based on the
New TCC are audited by the Ministry.
It is understood that the audit includes all activities from the
moment a company is established. With this broad auditing compe-
tence, the New TCC aims to ensure accountability and transparency in
commercial transactions.
The Purpose of Auditing
The aim of auditing is expressed in art. 4 of the Regulation.
Auditing targets to ensure all commercial companies realize their
transactions in accordance with the law. In that way, the Regulation
stipulates that the compliance of
“all transactions realized from the
establishment until the termination of commercial companies with the
Code and the regulatory transactions pursuant to the Code” shall be
audited “by the Ministry”
. Firstly, remedial aspect of auditing is put
forward. Therefore, it is stipulated that the Ministry shall provide guid-
ance to remove any improprieties in practice. Secondly, auditing has
another aspect, which is providing sanctions. Following completion of
an audit, it is regulated that persons, whose criminal liability is detect-
ed, shall be directed to the competent authorities. Persons whose legal
responsibility arises, the relevant persons are identified to the board of
directors and included in the agenda of the general assembly. Lastly,
the preventative role of auditing is emphasized. The Regulation stipu-
lates that precautions will be taken in order to prevent inconveniences
arising in practice.
Principles in Auditing
Auditing is based on the principles of impartiality, equality,
honesty, confidentiality, and professional diligence. These principles
are valid in all phases of auditing, in other words, from collecting
evidence to evaluating the consequences of the results. Moreover, the
principle of confidentiality prevails until the result of auditing becomes
definite.
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