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lized techniques. Within this scope, the Regulation suggests techniques
such as observation and affirmation.
Preparation of the Audit Reports
The reports indicated by the Regulation are prepared at the end of
the audit. Article 9 stipulates the content of these reports. The inspec-
tion report includes the conformity of the corporation’s acts with the
law. The investigation report is prepared only if there is a crime result-
ing in criminal liability. Finally, the survey report regulates all other
issues, which are not addressed in the other reports.
As specified under New TCC Article 210(3), the Ministry may file
a suit for the termination “
of the companies engaging in acts which are
contrary to the public order or its field of operation or preparatory
acts or engaging in acts and activities which constitute a simulation
”
within one year of being informed of the relevant activity. In order to
file suit for annulment, an investigation report shall be prepared.
Moreover, the investigation report shall state that situations giving
raise to the legal responsibility of persons should be included in dis-
cussion on the general assembly agenda and the shareholders shall be
informed about such situations, and the report shall include other
issues regarding the application of administrative monetary fines, and
other determination and opinions of matters which fall within the
scope of the authorization of other ministries, institutions and organi-
zations which require taking of certain measures.
Conclusion
The Regulation sets out the auditing criteria in a detailed way for
all commercial companies. The establishment, operations, and termi-
nation of a commercial company are subject to audit pursuant to cer-
tain procedures. Such detailed auditing will increase transparency and
keeping of records and will be a factor while fighting against the off-
the-record economy. Still, the Ministry needs qualified and experi-
enced personnel both in the provinces and in the cities in order for the
active auditing of commercial companies which are increasing day by
day and whose accounts become more complex. Without these per-
sonnel it would be naïve to anticipate an efficient auditing.
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