About Certified Public Accountancy
The occupation of Certified Public Accountancy exists for along time but the members of this business maintained their activities in an unorganized way until the year 1989. In this year, as the legislation of law numbered 3568, the CPA business was redefined and was set up on a legal sound basis. Within the meaning of this law, the CPA business was separated into three functional grades: Independent Accountant, Independent Accountant and Financial Consultant and Certified Public Accountant. All the duties that they should carry on were governed with laws, communiqués and regulations. Ministry of Finance gave a great many of responsibilities and tasks especially to the CPAs. Perhaps, one of the most important of them is to give the authorization of the public’s tax examination to the CPAs subject to the limitation of communiqués. In 1995, entitling the CPAs with “Full Certification” became a milestone in developing the occupation. With each passing day, the areas that the CPAs examine and certify are increasing.
In recent years, CPA business is perceived as a career option with its increasing necessity. In spite of making the CPAs do the full certification is not an obligation for the firms, most of them prefer to work in that way. By doing this, they make provisions for minimizing their faults in order not to be placed in difficult circumstances against the Tax Department.
As the province of CPAs is increasing as the passes, their responsibilities are also increasing. The member of this business and the client are severally bounded in connection with the most of the subjects that they certified and reported. This responsibility is in the sense of both legal and financial, in consequence CPAs should take their jobs seriously.
The CPA examines the firm’s (to whom they serve in the context of the full certification) bookkeeping entries and the documents which related with these records and the financial statements occurs accordingly with these records in respect of Tax Laws, Uniform System of Accounts General Communiqués and Generally Accepted Accounting Principles(GAAP). The CPA also gets information from the related Tax Department about the firm from which goods and services were purchased or makes “contra-examination”. After this examination and audit studies, an “Audit and Certification Report” is prepared according to related clause of the communiqué. In this way, the CPA acts as a semi-official member of investigation staff.
Main Activities of CPA
CPA certifies and reports both Corporate Tax Returns and Income Tax Returns with their attachments. These transactions are called “Full Certification”.
To prepare a report upon VAT which can not be removed through deduction because of export transactions and VAT rebate applications by analyzing communiqués and to provide refund of that VAT to clients or offsetting this VAT to clients’ public debts.
Setting up firms’ accounting systems, improving them, orienting the implementations done in accounting and finance department, setting up the cost accounting system, training the accounting and finance department staff, carrying on the financial statement and analysis studies in order to guide the managers’ and the other users’ decisions. On the other hand, consulting about the other related topics,
Special audit activities about specific local issues, expertness and investigation activities, preparing opinion standpoint and study, making domestic and abroad research,
If investments which are made in the scope of incentive certificate or not exceed the pre-specified limits, investment allowance amount is determined and reported.
Carrying out the capital increasing activities, and related to these activities preparing the required legal reports,
Customs Declaration Forms and Tax Sheets certification activities,
Arranging the required report by the banks about the credit applications of the firms and certification of the financial statements,
In case of a requisition, making internal auditing and reporting it,
Besides all we mentioned before there are many auditing and investigation studies about many issues, and related with them preparing certification report.
Main Reports Prepared By CPAs
1) Certification Report of Corporate Tax Declaration Form,
2) Corporate Tax Exception Report,
3) Certification Report of Income Tax Declaration Form,
4) VAT Refund Certification Report,
5) VAT Collection Report,
6) Private Consumption Tax, Refund Certification Report,
7) Investment Rebates Certification Report,
8) Revaluation and Inflation Adjustment Certification Report,
9) Inward Proceeding Permission Document Report,
10) Intra-Corporate Funds Determination Report,
11) Determination Report of Real-Asset Sales Revenue,
12) Affiliates Shares’ Sales Revenue Determination Report,
13) Capital Payments Determination Report,
14) Special Purpose Reports,
15) Certification Report of Sea Vehicles Fuel with Zero-Private Consumption Tax,
16) Tax Exemption and Exception Report for Foundations and Associations,
17) Determination Report of Senior Committee Shares of Radio and Television Supreme Council,
18) Energy Market Regulatory Authority,
19) Capital Markets Board Reports,
20) Bio-Ethanol Production Certification Report,
21) Operation Certification Report of Benzine with Bio-Ethanol Belongs to Collators,
22) Private Consumption Tax Production certification Report
Signing Of Tax Returns And Organization Of CPA Certification Report According To Tax Procedure Law
Repeated Clause 227 – Minisry of Finance ;
1. Obligates only Independent Accountants(IAs), Independent Accountant and Financial Consultants(IAFCs) or Certified Public Accountants(CPAs),who have authorization according to 3568.numbered law, to sign tax returns; enforces this obligation seperately by considering return types, client groups and activity subjects.
2. Subjects utilization of exemption,exception,revaluation,charge off and similar arbitraments, take place in tax laws,to condition of presenting tax returns according to Minisry of Finance rules.
Minisry of Finance has the authority of determining procedure and essentials upon these applications.
Charges of CPA Services
Charges of audit,certification, consultancy and etc. services done by CPAs or IAFCs are specified by Ministry of Finance every year and published in Official Newspaper.
It is not possible to charge lower prices for these services legally because they are determined by communiques.