86 İşbank
Annual Report 2015
Convenience Translation of the Independent Auditors’ Report
Originally Prepared and Issued in Turkish to English (See Note I in Section Three)
To the Board of Directors of Türkiye İş Bankası Anonim Şirketi;
Report on the Unconsolidated Financial Statements
We have audited the accompanying unconsolidated financial statements of Türkiye İş Bankası Anonim Şirketi (“the Bank”) which comprise the unconsolidated statement
of financial position as at 31 December 2015 and the unconsolidated statement of income, unconsolidated statement of income and expense items accounted under
shareholders’ equity, unconsolidated statement of changes in shareholders’ equity, unconsolidated statement of cash flows for the year then ended, and notes, comprising a
summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Unconsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these unconsolidated financial statements in accordance with the “Banking Regulation and
Supervision Agency (“BRSA”) Accounting and Reporting Legislation” which includes the “Regulation on Accounting Applications for Banks and Safeguarding of Documents”
published in the Official Gazette No.26333 dated 1 November 2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision
Board and circulars and interpretations published by BRSA and requirements of Turkish Accounting Standards for the matters not regulated by the aforementioned
legislations, and for such internal control as management determines is necessary to enable the preparation of unconsolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these unconsolidated financial statements based on our audit. We conducted our audit in accordance with the “Regulation on
Independent Audit of the Banks” published in the Official Gazette No.29314 dated 2 April 2015 by BRSA and Independent Standards on Auditing which is a component of
the Turkish Auditing Standards published by the Public Oversight Accounting and Auditing Standards Authority (“POA”). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the unconsolidated financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the unconsolidated financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the unconsolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the unconsolidated financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
As described in Notes to the unconsolidated financial statements Section II Note ğ-5, the accompanying unconsolidated financial statements as at 31 December 2015
includes a general provision at the amount of net TL 800.000 thousands which had been recognized as expense in the prior periods, subsequent to the reversal and
recognition as income of TL 200.000 thousands in current year which is provided by the Bank management for the possible effects of the negative circumstances which may
arise in the economy or market conditions.
Qualified Opinion
In our opinion, except for the effect of the matter described in the basis for qualified opinion paragraph above, the unconsolidated financial statements present fairly, in
all material respects, the financial position of Türkiye İş Bankası AŞ as at 31 December 2015, and its financial performance and its cash flows for the year then ended in
accordance with BRSA Accounting and Reporting Legislation.
Report on Other Legal and Regulatory Requirements
1) Pursuant to the fourth paragraph of Article 402 of the Turkish Commercial Code (“TCC”) No.6102; no significant matter has come to our attention that causes us to believe
that the Bank’s bookkeeping activities for the period 1 January - 31 December 2015 are not in compliance with TCC and provisions of the Bank’s articles of association in
relation to financial reporting.
2) Pursuant to the fourth paragraph of Article 402 of the TCC; the Board of Directors provided us the necessary explanations and required documents in connection with the
audit.
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi
A member firm of KPMG International Cooperative
Additional paragraph for convenience translation to English:
The accounting principles summarized in Note I Section Three, differ from the accounting principles generally accepted in countries in which the accompanying
unconsolidated financial statements are to be distributed and International Financial Reporting Standards (“IFRS”). Accordingly, the accompanying financial statements
are not intended to present the financial position and results of operations in accordance with accounting principles generally accepted in such countries of users of the
unconsolidated financial statements and IFRS.
