According to the Institute of Internal Auditors (IIA), internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.
Under Article 375 of the Turkish Commercial Code, “establishing the arrangements necessary for accounting, financial audit and, to the extent required by the management of the company, financial planning” is among the non-delegable and inalienable powers of the board of directors. The preamble to the law envisages the establishment of a financial audit arrangement, with an internal audit system for auditing the company’s business and transactions and an organisation (department) to carry it out.
The preamble also states that, whatever the size of the company, there is a need for an effective internal audit organisation that is fully independent of accounting and made up of specialists; that financial audit is, in a sense, the audit carried out by an inspection board; that in addition to the internal audit of the company’s business and transactions, financial audit includes auditing and monitoring financial resources, the way they are used, their condition and their liquidity; and that financial audit is a requirement of corporate governance rules.
While the Turkish Commercial Code makes no specific provision for any other company unit, the fact that management is given such a duty specifically for audit stems from the importance audit should have for all companies.
Tenet provides services relating to internal audit processes, which can be divided functionally into internal control, risk management and corporate governance. These services will make an important contribution to structuring an internal audit unit within the company in line with the International Standards for Internal Auditing and the provisions of the Turkish Commercial Code.