The board of directors of joint stock companies and the board of managers of limited liability companies are tasked with preparing the annual activity report and inancial tables of the relevant company.

As a general principle, companies, alone or together with their subsidiaries and ailiates, meeting any two out of the following criteria shall be subject to independent auditing: (i) total assets valued at TRY 35 million or more, (ii) annual net sales revenue of TRY 70 million or more, and/or (iii) 175 employees or more. Also, certain companies including: (a) publicly-listed companies and other companies licensed by the Capital Markets Board, (b) inancial services companies subject to the audit of the Banking Regulation and Supervision Board, (c) insurance, reinsurance and pension companies, and (d) media service providers, among others, shall be independently audited regardless of whether they fulfil any two of the above criteria. Finally, the Council of Ministers have listed certain companies in speciic sectors (such as telecommunication and energy) to be subject to independent auditing if they meet criteria lower or higher than above, as the case may be.

Where a company is subject to independent auditing, independent auditors are appointed by the general assembly on an annual basis.