11.01.2026 14:25
The Ministry of Treasury and Finance's Public Oversight Authority (KGK) revoked the operating licenses of 10 audit firms and 13 responsible auditors that prepared reports in a way that would abuse the concordat institution, and also imposed an administrative fine of 82.1 million lira on 14 audit firms.
According to information obtained from the Ministry, the processes related to bankruptcy protection requests are regulated by the Enforcement and Bankruptcy Law. Any company that cannot pay its debts when due or is at risk of being unable to pay can request bankruptcy protection to make the necessary payments or to avoid a potential bankruptcy.
Companies that will apply for bankruptcy protection prepare a preliminary project regarding how they will pay their debts. This preliminary bankruptcy protection project is audited by an independent auditing organization authorized by the Public Oversight Authority (KGK) according to Turkish Auditing Standards. As a result of the audit, a "reasonable assurance report" must be prepared regarding the process and submitted to the relevant court when applying for bankruptcy protection. These reports are of great importance in bankruptcy protection cases. Therefore, it is required that the auditing organization notifies the institution regarding the audits.
THE AUDITING ORGANIZATIONS UNDERTAKE BANKRUPTCY PROTECTION PROCESSES
KGK also carries out the examination processes related to bankruptcy protection audits. In the examinations conducted, it was observed that there were numerous bankruptcy protection audits that were not reported to the institution. According to data from the Ministry of Justice, the number of bankruptcy protection requests during the 2021-2025 period was 5,293, of which only 2,083 were reported to the institution. It was determined that 87% of the audits reported to KGK were conducted by only 16 auditing organizations. This indicates that bankruptcy protection processes are concentrated in certain auditing organizations.
REPORTS WERE PREPARED WITHOUT SUFFICIENT EVIDENCE
In KGK's examinations, it was found that reports were prepared in a short time frame of 1-7 days, audit contracts were arranged for amounts such as 5,000-10,000 lira that do not correspond to the nature of the work, and reports were prepared without collecting sufficient and appropriate audit evidence. Following these findings, KGK decided to impose various penalties on the relevant auditing organizations.
Accordingly, the operating licenses of 10 auditing organizations and 13 responsible auditors were revoked, the bankruptcy protection audit authority of 1 auditing organization was suspended for 2 years, and the operating licenses of 3 responsible auditors and 4 auditors were suspended for 2 years. 3 auditing organizations and 1 responsible auditor were subjected to warning sanctions, and a total administrative fine of 82 million 119 thousand 151 lira was imposed on 14 auditing organizations. KGK continues its examinations regarding bankruptcy protection reports.
AUTHORITY RESTRICTIONS WERE IMPLEMENTED
KGK also made administrative regulations regarding this process. Accordingly, bankruptcy protection audits were decided to be conducted only by authorized auditing organizations. The partners and managers of the auditing organizations whose operating licenses were revoked were also prohibited from undertaking bankruptcy protection work for a period of 3 years. It was decided that authorized auditing organizations could undertake bankruptcy protection work after conducting audit activities with this authority for a period of 3 years.
"WE WILL PREVENT ABUSE"
Minister of Treasury and Finance Mehmet Şimşek, in his evaluation regarding the issue, stated that the Public Oversight Authority is meticulously carrying out the process related to organizations conducting bankruptcy protection audits, and he noted: "We are resolutely carrying out all necessary work to increase penalties for firms and intermediaries that abuse the bankruptcy protection institution. We are conducting a joint study with our Ministry of Justice on this matter. We are taking steps to ensure that the bankruptcy protection process operates more healthily and is managed in a way that allows companies to avoid bankruptcy in accordance with its purpose."