1. “GOVERNMENTAL EXTERNAL TAX AUDIT”
TURKISH REPUBLIC
THE MINISTRY OF FINANCE
TAX AUDITING BOARD
“GOVERNMENTAL EXTERNAL TAX AUDIT”
Since 1945

2. The Republic of Turkey Ministry of Finance TAX INSPECTORS BOARD
Income related tax reform studies initially began within Turkey in In the years before 1943, the existing profit tax had completed its function and was unable to satisfactorily accommodate the developing needs of Turkey. For this reason, it was necessary to enact a modern tax system and implement tax reform inclusive of Income Tax Law, Corporate Tax Law, and Tax Procedure Law.
The Tax Inspectors Board was founded on May 29, 1945 to cope with these issues in the enacting of Code 4709, based on the authority of the Council of Ministers. This code was a landmark reform in tax inspection history and caused a major evaluation into previous methods.

3. THE DUTIES OF THE TAX INSPECTORS BOARD
The Tax Inspectors Board was altered and authorized to inspect taxpayer’s books and research matters pertinent to the Finance Ministry Code 4709.
The Financial Inspections Code pertaining to the Prevention of Money Laundering
Entering studies dealing with government income policy, preparation of law proposals and research
The education of board members on the subject of tax legislation
The Board is used in a specialist capacity in matters of tax for governmental departments and universities.

4. THE ADMINISTRATION STRUCTURE AND POSITION OF PERMANENT STAFF

5. WORK PLANNING AND AUDIT STANDARDS
The basic aim of the yearly work plan is to determine the expected tax inspection capacity and other workings with working plans. In this way, the Board’s activity can be followed easily.
The board plans its working capacity, follows its working results with statistical methods, and analyzes its expectation and realization with “Working Reports” .
Included in the annual working plans, the Board considers its activity and plans according to large companies.
At the end of the year, all of the data and information gathered from the tax inspections and other workings are evaluated by a special statistical system and a “General Working Report” is prepared according to these results.

6. The Tax Inspector’s Boards Standards
General standards
1.      Beginning Formation and Education
2.      Necessary Professional Pains (Core)
3.      To Behave Objectively, Independently, and Neutral
4.      Professional Confidentiality
5.      Behavior of the Board Members and its Representatives
Working Standards
1.      Preparations of Inspections
2.      Work Planning and Preparation Programs
3.      Supervision Principal Obedience in Team Work
4.      To Gather and Evaluate Evidence with Proper Inspection Techniques.
5.      To Keep and Protect Inspection Notes Systematically
Report Standards

7. 1-The candidates must be qualified to join to TAB.
As a leader of governmental external tax audit, Tax Auditing Board (TAB) has been improving its audit standards since it was found in 1945 because it does believe that if you want to perform your functions effectively, you must have standards that can help you in planning and performing your job. TAB has following standards which have big parallelism with AICPA’s GAAS and international standards
1-The candidates must be qualified to join to TAB.
All junior Tax Auditor candidates have to pass three main exams including pre-election exam given by OSYM (The Centre for Student Election and Placement), a four-day writing exam that tests candidates’ knowledge and command skill about economics, finance, accounting, business law, and business administration issues, and oral exam.
2-Tax auditing must be performed by well-educated persons who have professional skills.
After being successful, candidates are appointed as junior tax auditor. During the first eighteen months in The Board
During performing the audit, auditor must be independent, unbiased, and objective.
From the beginning to the end of audit, a professional care must be exercised.
4-Standards of Field Work
Preparing for audit
-General preparation for the sector
-Preparation for the company
-Works to be performed in the company

8. Planning and programming of work
· for determination of risks, to indicate the special accounts and estimate a “materiality” amount,
· to specify fields, transactions, events, and accounts in which various mistakes, errors, and frauds can be occurred and to determine proper audit techniques to detect them.
For these purposes, following works must be perform:
- to understand the company’s internal control, and
- to compare the company’s data with its estimations, previous results, technically expected outputs (internal comparison) and competitors’ and sector’s data (external comparison),
· Designation chronologic order of stages that cover the selected audit techniques,
· Determination special issues that require specific knowledge and using the work of specialist,
· Usage of computer to prepare data and determination of the personnel and help that the company’s personnel can provide,
·  To prepare the work schedule,

9.  Supervision
Sufficient evidential matter shall be obtained and evaluated
Working paper

10. Reporting standards · The subject, scope, and limit of audit,
· An obvious expression of opinion pertaining to tax returns and all others audited issues,
· Criteria, laws and regulations along with other economic, technical evidences and matters that helped the auditor to constitute his opinion, and
· The report must be prepared in the standard form including following sections:
· The cover and general information about entity and performed audit ,
· The works that performed in term of the legal procedures,
·  The criticised issues and auditor opinion with all explanations about evidences, laws, and regulations matters that constituted the auditor’s opinion,
· All of the attachments, as the main source of claims that forms