RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.25
11February 1997
ORGANIZATION
(97-0525)
Working Party onProfessional Services Original: English
COMMUNICATION FROM TURKEY
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofTurkey.
________
I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
There arethreeprofessional titlesofaccountants inTurkey: "Accountant (A),Financial Advisor
(FA) andCertified Public Accountant (CPA)."
These titles areprotected bylaw. According tothelaw,itisforbidden tousethetitles of
"Accountant, Financial Advisor andCertified Public Accountant" oranytypeoftitles andconcepts
tobedeemed, orsimilar to,titlesmentioned above bythose whodonothavetherighttousethem.
WhentheChambersbecomeawareoftheviolationoftheseprovisions,theyareresponsibleforinforming
theprosecutor ofthesituation.
2. How istheaccountancy sector regulated inyour country: bylaw,professional self-
regulation, acombination ofboth?
Theaccountancysectorisregulatedbylaw.FinancialAdvisorsandCertifiedPublicAccountants
arealsosubject totheregulations oftheMinistry ofFinance.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Ifcompany names, whether national orforeign, areregistered withthegovernment registration
agency, these areprotected under theCommercial Code.
4. What aretheprofessional bodies inyour country? Aretheyrecognised bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orare
these functions fulfilled byother institutions (please specify)?
"ChambersofFinancialAdvisors",representingAccountantsandFinancialAdvisors,"Chambers
ofCertified Public Accountants", representing Certified Public Accountants andthe"Turkish Union
ofChambers ofFinancial Advisors andCertified Public Accountants", which isfounded bythe
participation ofallchambers, arethepublic institutions withlegalpersonality. They arerecognized
bythelawasdisciplinary bodies fortheaccountancy profession.S/WPPS/W/7/Add.25
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5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
Accountants (A) 23.000
Financial Advisors (FA) 17.000
Certified Public Accountants 3.000
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Activities practised by:
Accountants (A)
(a) Tokeepthebooks; prepare thebalance sheet, profit/loss statement, taxreturns and
other documents under theprovisions ofrelated legislation andgenerally accepted
accountancy principals oftheenterprises andundertakings belong totheindividuals
andlegalentities.
Financial Advisors (FA)
Inaddition totheactivities mentioned above:
(b) Toestablishandimproveaccountancysystems,regulatethedutiesrelatedtothebusiness
management, accountancy, financing, financial legislation andimplementations thereof
ortoperform advisory activities onthese subjects,
(c) Tomade study, analysis, inspection onthesubjects mentioned inparagraph (b)ontheir
documents; togivewritten views prepare reports orsimilar documents onfinancial
tables andtaxreturns, ortomake arbitration, expertise andother similar affairs.
Certified Public Accountants (CPA)
Inaddition totheactivities mentioned inparagraphs (b)and(c):
(d) Tocertify thefinancial statements andtaxreturns oftheindividuals andbodycorporates
andenterprises orestablishments thereof interms oflegislative rules, accounting
principals andstandards andalsocertify accounts according totheinspection standards.
However, theissues related totheutilization oftheauthorities ofinspection and
examination given tothepublic administration byvarious lawsarereserved.
Certified Public Accountants cannot keepthebooks related totheaccountancy, cannotoperate
anaccountancy office andcannotbeapartner ofaccountancy offices.S/WPPS/W/7/Add.25
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7. Which ofthese activities areregulated inyour country?
Following activities areregulated foreachtitle:
Accountants: accounting.
Financial Advisors: accounting, statutory audit, auditofmergers, taxadvice, expert witness
inaccounting.
Certified Public Accountants: statutory audit, audit ofmergers, taxadvice, expert witness.
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.
byfullprohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Statutory audit andaudit ofmergers arereserved toFinancial Advisors andCertified Public
Accountants andaccounting isreserved toAccountants andFinancial Advisors.
Seeresponse tothequestion no6fordetails.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreachelement, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Requirements toqualify fortheAccountant:
(1) atleasttwoyears university degree onspecified branches orbeing graduated from
thehighschools specialised incommerce andfinance;
(2) 4years practical experience forgraduates ofuniversity degree and6years practical
experience forthegraduates from thementioned highschools.
Requirements toqualify fortheFinancial Advisor:
(1) 4years university degree onspecified branches;
(2) twoyears practice withafinancial advisor orcertified public accountant;
(3) passing theexamination forFinancial Advisory.
Requirements toqualify forCertified Public Accountants:
(1) 4years university degree onspecified branches;
(2) 10years ofexperience onfinancial advisory;
(3) passing theexamination forCertified Public Accountancy.S/WPPS/W/7/Add.25
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10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
A FA CPA
- Minimum age yes(18) yes(18) yes(18)
- Particular diploma ortitle yes* yes* yes*
- Prior education yes yes yes
- Payment ofafee yes yes yes
- other
*University degree inoneofthesubjects oflaw,economics, finance, business management,
accounting, banking, public administration orpolitical sciences orequivalencies isrequired.
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
Education requirements for:
Accountants: accounting, taxlaw.
Financial Advisors: accounting, taxlaw,general laws, statistics, foreign trade andexchange
regulations, social security law,auditing.
Certified Public Accountants: economics, finances, Capital Market Board Law, Turkish and
European taxlegislation, company accounting, costaccounting, banking andinsurance law,customs
law,auditing, reporting, reviewing, administrative judgement procedures law,foreign language.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
Accounting standards exitsforAccountants andFinancial Advisors. Auditing andfinancial
reporting standards existforCertified Public Accountants andpartly forFinancial Advisors.
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients,
etc.)?
These standards arejointly developed andmonitored bytheMinistry ofFinance, Capital Market
Board andTurkish Union ofChambers ofFinancial Advisors andCertified Public Accountants.S/WPPS/W/7/Add.25
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14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
International standards issued byIASC arebeing usedasabaseforthedevelopment ofnational
accounting standards.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
The"Code ofAccountancy, Financial Advisory andCertified Public Accountancy" andrelevant
regulations forthese professions cover ethical rules.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
These ethical rulesaredeveloped bytheMinistry ofFinance together withtheTurkish Union
ofChambers ofFinancial Advisors andCertified Public Accountants. Theimplementation oftheethical
rulesaremonitored bytheirrespective Chambers, aswellasbytheUnion ofChambers andtheMinistry
ofFinance.
Abreach oftheethical ruleresults indisciplinary sanctions suchaswarning notice ofprovisional
keeping backfromtheprofessional activity, cancelling thecertified title,dismissing fromtheprofession.
17. Arethere restrictions onmarketing, solicitation, advertising?
Advertising andsolicitation isrestricted forA's,FA'sandCPA's.There arenorestrictions
onmarketing butthese activities must respect thedignity oftheprofession.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Minimum feesaresetbytheMinistry ofFinance.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Licensing requirements are:
- Membership oftherelevant precessional body.
- Taking ofanoath.
- Absence ofanycriminal record.
- Police enquiry.
- Minimum age(18).
- Turkish citizenship (except foreign Financial Advisors under reciprocity).S/WPPS/W/7/Add.25
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20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
None other thanthose specified under section IIandanswer no.19.
21. Arethere specific licensing requirements forprofessional firms?
Only individuals areallowed tobelicensed. Licensed individuals mayestablish acompany
orpartnership among themselves afterbecoming themember oftherelevant chamber.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Anapplication forlicensing canbefiledatanytime. Thelicensing procedure takes about two
weeks.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What
kindofdocumentation isnecessary/accepted? Aredocuments issued inother countries
acceptable? Please specify.
Nodifferences inlicensing requirements according totheactivities. Acompleted application
form, diploma oftheuniversity orequivalent, certification ofcompleted traineeship andpassing the
qualifying examination, proof ofbeing healthy andnottobesentenced ofacrime arenecessary. Diploma
offoreign universities, ofwhich equality toTurkish onesareapproved bytheSupreme Educational
Committee, arealsoaccepted.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
Individual 'slicense iscancelled. Asnoted above, firms maynotbelicensed.
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries
inthisrespect?
Turkish citizenship isrequired forAccountants andCertified Public Accountants. Inorder to
perform theactivities asaFinancial Advisor, citizen ofaforeign country which hasofficially codified
theprinciples fortheprofession offinancial advisory, under reciprocal conditions, maybeauthorized
bytheapproval ofthePrime Minister upon theproposal oftheMinistry ofFinance, provided that
thisperson should havethecharacteristics required fortheprofession offinancial advisory inTurkey
andshould haverights toperform similar services intheirowncountries.
There arenobilateral agreements inthisrespect.S/WPPS/W/7/Add.25
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26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify the
main characteristics ofsuchagreements; ifnot,please explain why.
No.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocal
licence always necessary topractice aregulated accountancy activity? Please specify when
thisisnotthecase.
Seetheresponse tothequestion no25.
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorised topractice intheirhome country? Maycertain (regulated) activities becarried
outonthebasis ofaforeign licence?
Seetheresponse tothequestion no25.
VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
No,there aren'tanyrestrictions ontheform ofacommercial presence butasnoted above,
onlylicensed individuals mayestablish acommercial presence among themselves.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
Therearenospecificrestrictionsonforeigndirectinvestmentforaccountancysector,butgeneral
screening procedures forallForeign investment above 50000USD apply.
Ownership offirms islimited toTurkish licensed professionals forAccountants andCertified
Public Accountants, butforeign ownership orpartnership isallowed forFinancial Advisors qualified
under theconditions referred intheresponse tothequestion no25.
31. Isthere arequirement ofaminimum number orpercentage oflocaldirectors, managers
orstaff(please specify)?
Notregulated.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)?
Please specify.
No.S/WPPS/W/7/Add.25
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33. Istheuseofinternational orforeign names restricted forfirms?
Foreign names canbyusedbyfullyforeign -owned financial advisory firms. However, firms
fullyowned bylocalfinancial advisors cannotuseforeign titles andnames.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market tests oranyother
restrictions? Please specify.
Nospecific requirements forthisprofession.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
No.
36. Arethere anyrestrictions onhiring oflocal professionals byforeign firms and
professionals? Please explain.
No.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please
specify.
Except foreign Financial Advisors, subject totheconditions mentioned inresponse no25,
citizenship isrequired.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isit
possible tohave aprofessional establishment inmore thanonecountry?
Yes,residency isnecessary. Itispossible tohaveaprofessional establishment inmore than
onecountry, provided thatpermission from theMinistry ofFinance isnecessary.