Date: 5/2/2024

Number: 2024-8 

    ANNOUNCEMENT

SUBJECT: Publication of “Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards” and “Revisions to the Code Relating to the Definition of Engagement Team and Group Audits”

Tukish Quality Management Standards (TSQM 1, TSQM 2) were published in the Official Gazette dated 16/01/2023 and numbered 32075 (1st duplicate) and systems of quality management in compliance with this TSQM are required to be designed and implemented by by 31/12/2023. To ensure compliance with the terminology and requirements that changed by the TSQMs, main changes made in the “TSAE 3410 Assurance Engagements on Greenhouse Gas Statements”, “TSRS 4400 Agreed–upon Procedures Engagements” and “TSRS 4410 Compilation Engagements” Standards are summarized below:

• Due to the repeal of Standard on Quality Control 1, references to TSQC 1 have been changed to TSQM 1,
• The requirements in these Standards have complied with the requirements and concepts in TSQM 1, ensuring consistency and connection between the Standards and
• The expressions “quality control” and “TSQC 1” in the illustrative reports in the Appendix of TSAE 3410 and TSRS 4400 were changed to “quality management” and “TSQM 1” to keep the illustrative report are up to date.

On the other hand, the revision project carried out by the International Ethics Standards Board for Accountants (IESBA) to make the International Code of Ethics for Professional Accountants (including International Independence Standards) compatible with recently revised standards, especially Quality Management Standards, TSA 220 and TSA 600 has been completed. In this context, the main changes made to the International Code of Ethics for Professional Accountants to comply with the changes made by IESBA are summarized below:

• A new section regulating group audits has been added and new requirements and application material have been introduced regarding the identification, evaluation, and addressing of threats to independence in such audits,
• The glossary and various requirements have been changed to comply with the terminology in recently revised Standards such as Quality Management Standards, TSA 220 and TSA 600,
• New requirements have been introduced regarding how communication should be established between a group auditor firm that expresses the opinion on the group financial statements and a component auditor firm that performs audit work related to a component for purposes of a group audit, to comply with ethical requirements,
• In the event of a breach of an independence provision at the component auditor firm, the process for addressing the breach is clearly stated and the importance of communication with those charged with governance of the group is emphasized and
• The definitions of audit team, engagement team, and assurance team have been changed and guidance has been provided on who to include in these teams.

“Conforming and Consequential Amendments to the IAASB’s Other Standards as a result of the New and Revised Quality Management Standards” and “Revisions to the Code Relating to the Definition of Engagement Team and Group Audits” have been endorsed by our Board’s Decision dated 01/02/2024 and numbered 22438, and were published in the Official Gazette dated 03/02/2024 and numbered 32449.

“Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards” and the changes within the scope of the first six chapters of “Revisions to the Code Relating to the Definition of Engagement Team and Group Audits” entered into force at the date of publication.

The amendments within the scope of the seventh section titled “Changes to the Glossary Arising from Approved Revisions to the Definitions of Listed Entity and Public Interest Entity” are effective for audits of financial statements and group financial statements for periods beginning on or after 31/12/2024.

Click to access “Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards”.

Click to access “Revisions to the Code Relating to the Definition of Engagement Team and Group Audits”.

It is respectfully announced to the public.

Contact Information

For detailed information you can send an e-mail to denetimstandartlari@kgk.gov.tr

 Click to access the announcement.