History of Turkey's European Union Membership Process

* 1959
Turkey , at July of 31st, 1959 to European Economic Community (EEC) filed for a partnership.

* 1963
Perspective of full membership in the Customs Union and the European Economic Community, the Ankara Agreement (Partnership Agreement) and I. Financial Protocol was signed.

* 1970
Additional Protocol(Annexed protocol) and II. Financial Protocol signed in Brussels.

* 1973
Explaining how to set up the Customs Union’s ‘’ Additional Protocol ‘’ entered into force.

* 1980
Following the September 12nd military coup stop relations between Turkey and the European Economic Community (EEC).

* 1987
Turkey, on April 14, has made application for full membership of the European Economic Community (EEC).

* 1996
Between Turkey and the The European Union (EU) "Customs Union" came into force as of January 1st.

* 1997
Grant candidate status to Turkey at the Luxembourg summit of The European Union (EU) leaders in December. Political relations were stopped by Turkey.

* 1998
The European Commission published a progress first report on Turkey.

* 1999
Council of Europe, the Helsinki Summit in December, gave the status of candidate country for EU membership to Turkey.

* 2001
European Council on March of 8th that the road map for Turkey's The European Union (EU) accession process The European Union (EU) - Turkey Accession Partnership Document was adopted.

* 2004
On December 17th of the Council of the European Union, took the decision to start membership negotiations with Turkey.

* 2005
On October 3rd , Turkey's The European Union (EU) accession negotiations  and Screening Process began officially. Negotiation Framework Document was adopted.

* 2006
The European Union (EU)  have blocked Turkey talks with 8 titles. Because Turkey didn't  implement Customs Union  to new member Cyprus.

* 2007
Referendum on the constitutional obligation to provide input on the for new The European Union (EU) members. And France, who has made the five - tuple associated with full membership negotiation was blocked.

* 2010
From June 2010, Turkey has 35 title and 13 of them have started negotiations and 1 of them are temporarily stopped.


Negotiation Process


* 2005
The first phase of the negotiation process started on 3 October 2005 be referred to as the screening process, on 20 October 2005 "Science and Research" chapter of started, 11-13 October 2006, "Judiciary and Fundamental Rights" chapter in the bilateral screening meeting has ended.

* 2006
During the screening process as a continuation of the Austrian EU Presidency on 12 June 2006 "Science and Research" chapter of negotiations have been opened and provisionally closed the same day.

In December 2006 the EU by 8 topics ("Free Movement of Goods", "Right of establishment and freedom to provide services", "Agriculture and Rural Development", "Customs Union", "Foreign Affairs", "fishing", "Financial Services", "Transportation ") of their obligations under the Customs Union has been suspended due to failure to follow against South Cyprus. The other decision that the European Council in December 2006 that Turkey open its ports and airports in South Cyprus, the issue of a temporary shutdown criterion is that all the titles.

* 2007
During the first half of the Germany presidency of the Year "Enterprise and Industrial Policy" and "Statistics" and "Financial Control" opened negotiations with headings.

During the Portuguese presidency in the second half of 2007 "Trans-European Networks", "Consumer and Health Protection" was opened for negotiation topics.

Within this year, "Economic and Monetary Policy", "Agriculture and Rural Development", "Regional Policy and Coordination of Structural Instruments", "Institutions" and "Financial and Budgetary Provisions" titles because they are directly related to membership in France has been blocked on appeal.

* 2008
During the Slovenian Presidency in the first half of 2008, "Company Law" and "Intellectual Property Law" was opened for negotiation topics.

During the French Presidency in the second half of the year, "Information Society and Media" and "Free movement of capital" was opened for negotiation topics.

* 2009
Czech Republic presidency, "Taxation" section was opened for negotiation.

During the Swedish Presidency in the second half of the year, "Environment" section was opened for negotiation.

* 2010

Spanish presidency in the first half of the year, "Food Safety, Veterinary and Plant Health" heading was opened for negotiation.


Perspectives for the coming period:

Expected to open in the next short period of negotiations as a priority headings "Public Procurement", "Social Policy and Employment", "Competition Policy" and "Other Issues" is. The remaining titles in order to open a portion of the opening criteria are met, the political reason of barriers to discussion of topics in the political path must be removed or blocked. At first, "Agriculture and Rural Development", including the removal of some of the topics open in both technical and political barriers to the fulfillment of the criteria depends on the opening.

Internal Dimension

Meaning in terms of compliance with The European Union (EU), Turkey is to achieve better living conditions. The EU accession process, justice, education, health, environment, investment environment, foreign trade, competition and a wide range such as this, requires that the reforms necessary for Turkey. That is completely in line with Turkey's national interests, including developments in process. National extraction, this process is not only economically, politically and socially in the form of a reform process to define and carry out a parallel process of a successful negotiation. Stability provided by the The European Union (EU) accession process in terms of opening the way for foreign investments in the economy, taking into account the apparent target, a high growth rate and a short time to stabilize the purchasing power parity, which corresponds to half the The European Union (EU) average of at least one must capture the level of national income per capita.

Under this perspective, Turkey, 1999 at the Helsinki Summit in December, after having obtained the status of The European Union (EU) candidate countries political and economic reform process entered an irreversible path and has achieved significant gains. Governments that are on duty throughout the process, albeit at a variable life have undergone such reforms. With the start of accession negotiations in 2005, the most serious stage of the accession process has been entered.

Turkey within the framework of the The European Union (EU)'s budgetary and institutional arrangements appear to be the most reasonable date in 2014, wants to become a member, are required to complete negotiations by 2012. In the country for the years 2011 and 2012 parliamentary and presidential elections to be taken into account if the future of the legal and administrative compliance with the equivalent period of work ahead of us thought for the less time you will need to consider when we left. Which is currently not open for negotiation and discussion, and especially difficult if we take into account long-pass timing problem topics will be revealed to serious thought.

Discussion of these topics in relation to ongoing and is expected to start discussing the arrangements stipulated in the National Programme will be applied. However, the legal regulations of the National Programme, the realization rate is extremely low.

External Dimension

On the other hand, the central countries of Europe member states to the The European Union (EU) enlargement and the transfer of powers to Brussels in the range of politicians in power against the other candidate countries, Turkey's new challenges that have not reached the agenda be removed.

The European Union (EU) currently is in evolution. Within The European Union (EU), global vision is of a political perspective, or withdrawn, the "old Europe" mentality is not certain to rise dominant. EU, today, global economic competitiveness, trying to overcome the problems of the areas of institutional reform and political integration, on the other hand, keep step with globalization, and also to delay Turkey's membership process in some member states, led a group working to slow down the observed change in The European Union (EU). Turkey  towards a better democracy, more competitive economy and a strong community with a demographic structure as the strong, The European Union (EU) should follow closely the evolution. We're ready for membership, The European Union (EU) must be ready.

The European Union (EU)'s agenda and to contribute to discussions on the future of the multilateral strategic, close to the EU Institutions to Cooperate on the idea, and in this way become a party contributing to The European Union (EU) agenda is important. Politics, the fundamental solution of the problems and the most important driving force in this direction that the economic growth and global competitiveness policies and focus on Strategies to produce a solution.

Vision 2050 Turkey

Vision 2050 Turkey

Restructuring Process: 2010-2025
Conversion Process: 2025-2050

Human Development

Ensuring equality of opportunity for everyone to reach a more democratic and prosperous society.

Urbanization

Cities that offer a high quality of life for future generations.

Urban Transport

Safe and low-carbon transport.

Energy

Safe and low-carbon energy.

Sustainable Production and Consumption

Efficient and high tech manufacturing & conscious consumers.

‘’ Time 2050:Turkey has a population of 100 million ‘’

Human Development

- Vision

Ensuring equality of opportunity for everyone to reach a more democratic and prosperous society.

- Measures of Success

1. Education, employment, health and social  security policies configured taking into account changes in population structure.
2. Individual and regional income disparities and poverty have been fixed.

- The main subject of the conversion time

1. Increase in the population of working age, the aging society.
2. The fight against poverty and inequality in income distribution.

-The key issues in the transition period

1. Increasing participation of women in the labor force and employment.
2. Prevention of unemployment.
3. Education reform.
4. Changes in the age structure of the population.

- At 2025 , These must be done

1. Equal participation of women in all areas of social life.
2. Eliminate regional development disparities.
3. Implementation of employment-friendly policies.
4. Expansion and improvement of the quality of training at each level.
5. Tightening of the informal economy.

Urbanization

- Vision

Cities that offer a high quality of life for future generations.

- Measures of Success

1. Balanced growth was achieved.
2. Population and environmental sources was developed transportation systems and housing technologies.

- The main subject of the conversion time
Smart green city.

- The key issues in the transition period

1. Provision of urban transformation.
2. Increase in innovative capacity.

- At 2025 , These must be done

1. Integrated urban management.
2. Urban growth, land use planning and urban design by means of taking control.
3. Using the principles of green architecture and green building, environmental protection and improving the environment, the integration of planning processes of restoration work.

‘’ Time 2050: 80 % of the population will live in cities ‘’

Against the negative effects of climate change: Smart Green Cities


Urban Transport

- Vision

Safe and low-carbon transport.

- Measures of Success

1. Alternative energy fuels became dominant.
2. Transparent and participatory management of the transportation was provided.

- The main subject of the conversion time

Integrated transportation solutions.

- The key issues in the transition period

1. Ensure a balance between transport modes.
2. Reduction of greenhouse gas emissions from transportation.

- At 2025 , These must be done

1. Providing access to the transportation system.
2. Vehicle and fuel efficiency improvement.
3. The development of intelligent communications technologies.
4. Weight given to infrastructure investments.
5. Development of new vehicle systems.

‘’ Istanbul highway transportation of CO 2 emissions increased by 37 % between 1990-2007 and it has been 9 million tons. ‘’

Energy

- Vision

Safe and low-carbon energy.

- Measures of Success

Reduced greenhouse gas emissions in accordance with a specific target.

- The main subject of the conversion time

Energy supply security and reducing greenhouse gasemissions.

-The key issues in the transition period

1. Liberalization of the energy sector provision.
2. Reduce reliance on energy imports.

- At 2025 , These must be done

1. Reducing the cost of renewable energy sources.
2. Transition to efficient technologies in electricity generation.
3. Diversification of energy sources.

‘’ Turkey, 70 % of the energy it consumes is imported ‘’.

Production and Consumption of Energy and Resource Efficiency Habits

- Vision

Efficient and high-tech manufacturing & conscious consumers.

- Measures of Success

1. Sustainability, for all products, services, consumption and lifestyles are applied.
2. Increased share of the production of high-tech products.
3. Energy intensity fell to the  Organisation for Economic Co-operation and Development (OECD) average level.

- The main subject of the conversion time

Consciously change the production structure and consumption habits of industry.

- The key issues in the transition period

1. Reward and promote the technological development is the right technology choices.
2. Reduce energy intensity.
3. Consumers' awareness, preferences, since the creation of environmentally friendly products.

- At 2025 , These must be done

1. Stages of production and logistics to ensure the resourceand process efficiency.
2. Increasing innovation at every stage of production.
3. Environmentally friendly products, while building a competitive, consumer preferences to be encouraged to do so.
4. Increase business and consumer relationship.


‘’ 58 % of consumers say environmentally-friendly products are too expensive. While 33 % said there is functional enough ‘’.

‘’ Turkey as of 2008 approximately 37 % share of total industrial energy consumptionc’’.

‘’ Turkey, in 2009 the share of environmental spending 0.13 % of energy efficiency ‘’.

Real Sector Internal Audit Practices: Assessment and Recommendations

What is Internal Audit?

• Internal Audit, which aim to add value to an organization's operations and develop an independent and objective assurance and consulting activity.

• The internal audit organization's risk management, internal control and governance processes to evaluate and improve the effectiveness of a systematic, with disciplined approach and helps to achieve goals and objectives.

What is Corporate Governance?

Direct the activities and operations of an institution and to keep under control and achieve their goals and interests of the various different groups of stakeholders and in accordance with the ethical standards applied and used in order to maintain the policies, processes and structures.

Corporate Governance, An Organization:

•  Lived in the laws and regulatory rules of the society to suit.

•  Generally accepted business norms and standards, ethical codes of conduct and provides the community to meet social expectations.

•  Lived in the community in general to be useful and to increase protection of the rights and interests of stakeholders provides.

• Decisions, actions, behavior and performance of the checking and control of the owners, regulatory bodies and authorities, rights and other stakeholders and the public is accurate and complete information to give a full, complete, and ensures that the correct information.


Strong Corporate Governance

• Board of Directors
• Management
• External Auditors
• Internal Auditors

Responsibilities of the Board of Directors:

• Determines the style of top management.
• All the focal point of corporate governance activities.
• The final takes on the responsibility.
• All institutional controls and oversees the activities and affairs, but no one of them directly govern itself.

Senior Management

• Strategic direction and objectives of the organization's value system and determination
that (the board of directors oversight).

• Assurance that the risk management process, operations, monitoring, measurement of results and provides the timely implementation of the correct actions.

Business Management

• Implement the strategy puts the internal control area and the units directly under its control, mobilize and implement the supervision and management.

• Implementing and monitoring the risk management process and to establish effective and appropriate internal control systems in the institution's senior management and ultimately responsible to the board of directors.

External Audit

• Preparation of financial statements in accordance with related laws and accounting principles and reporting on its activities to provide independent assurance.

Internal Audit

• Corporate Governance structures and processes are designed properly and correctly and to provide assurance on the effective and efficient work that makes for the purpose of evaluation.

• Potential improvements in corporate governance structures and processes can be done about the proposal and make recommendations.

What is the Role of Internal Audit and the task?
• Tester
• Consultant
• Advocacy and Promotion (Advocate)
• Catalyst

Standard 2130

The Internal Audit unit and activity, for the realization of the objectives listed below, must make informed decisions about improving the governance process should have the necessary recommendations for improvement:

• The ethical values ​​and other values ​​within the organization the development.
• Effective and efficient provision of a corporate performance management.
• Areas of risk and control information necessary to effectively forwarding.
• The Board of Directors, External Auditors, Internal Auditors and Directors effective and efficient coordination of activities between and among them to ensure efficient and effective communication.

What is the added value to businesses of corporate governance?

• Institutionalization and professional management
• Global competition
• Sustainable growth
• Corporate reputation
• Company value
• Risk management
• Rating
• Corporate governance index
• Basel II
• New Turkish Commercial Law


What is the added value provided by the Initial Public Offering (IPO) firms?

• Financing
• Liquidity
• Institutionalization
• Trust
• Credibility
• Global and national  awareness.
• Possibility of a secondary public offering
• Global opportunities

What is the role of internal audit in compliance with corporate governance principles?

• Shareholders
• Stakeholders
• Board of Directors
• Disclosure and transparency
• Corporate Governance and Compliance Process

• Fairness
• Transparency
• Accountability
• Responsibility

The role of internal audit in the  Initial Public Offering (IPO)  process.

What?

• Financial reporting and independent audit
• Public information
• Corporate governance principles
• Evaluation of the effectiveness of internal controls
• The Board of Directors
• The Audit Committee
• Professional Management
• Regulatory Authority

Corporate Governance;

Company management, business processes, and relationships with stakeholders;

• Equality, transparency, accountability and approach to responsibility
• Effectiveness and efficiency of the Company's activities,
• Reporting
• Compliance with government regulations,
• The protection of the rights and interests of stakeholders for  indicates that the approach and principles that provide assurance.

Initial Public Offering (IPO)

Information

• The market value of publicly traded companies, Gross Domestic Product (GDP) 37 percent (80-90% of developed countries).

• 75% of individual savings deposits and foreign currency 8% of the shares directed.

• The first and second 500 industrial establishment 876 not traded.

Benefits

• Financing
• Liquidity
• Institutionalization
• Credibility, reputation and advertising
• International integration
• Transparency
• The secondary public offering

Liabilities

• An independent audit
• Informing the public
• Dividend distribution
• Corporate governance

Internal Audit

International Institute of Internal Auditing (IIA) * according to internal audit.

• Which aims to add value and improve an organization's activities in an independent and objective assurance and consulting activity.

• Internal audit, the organization's risk management, control and governance processes to evaluate and improve the effectiveness of its objectives by bringing a systematic, disciplined approach helps to achieve.

Improving Internal Audit

Control-Based inspection

• Target: Regulatory Compliance.

• Focus: identification issues that do not comply with applicable regulations.

Process-Based Control
• Target: the effectiveness and efficiency of processes.

• Focus: comparing the gaps in existing processes, identify best practices.

Risk-Based Audit

• Goal: Prevention of Risks and Processes across the state of controls.

• Focal Point: Show the effectiveness of key processes and controls necessary to prevent identification of risks.
Corporate Risk-Based Audit Management

• Goal: to reach the objectives of the institution, the effectiveness of risk prevention and minimization of risk management activities.

• Focal point: to understand the objectives, risks associated with the identification, understanding and tolerance levels, performance and risk identification and measurement of the effectiveness of risk management by evaluating the current and desired corporate risk determination of management between the gaps.

Role of Internal Audit in Corporate Governance

• The Board of Directors and Committees
• Ethics and Code of Conduct
• Disclosure and Transparency
• Risk Management
• Internal Controls
• Compliance with Laws and Regulations
• External Audit
• Relations between Corporate Governance Participants

Internal Audit Approach

Method

• Compatible with the company's objectives and strategies
• Focusing on the risks and processes
• Proactive
• Simultaneous control using the latest technology
• Solve problems rather than the force that help

Customers
• Customer-focused and risk assessment, which included them.
• educating senior management on internal control and internal audit.
• Clients with common goals and objectives.
• Continuous training of employees contributing to the development.

Communication

• Listening to customers on a regular basis
• Communicate with top management continuously and constructively
• Sharing the managers reporting to meetings
• Shorten the reporting time.

Internal Auditor's Role and Responsibilities

Internal Audit

• Independent and objective evaluation function,
• The presence of the internal control system, evaluates the efficiency and effectiveness,
• Management recommends how it should be accurate and reliable internal control system,

Evaluates the effectiveness of risk management and corporate governance processes and can contribute to the development,

• Financial and operational integrity and reliability of the information,
• effectiveness and efficiency of operations,
• Protection of assets
• Law, regulation and review of compliance with internal procedures

In line with the objectives of the organization contributes to the development,
‘’Creates added value’’

Create value and role of internal audit

• Process improvement
• Human Resource Development
• Performance and Productivity Management
• Internal Communication
• The Learning Organization
• Best Practices / Benchmarking
• Value Added
Approach

• Internal audit, management's objectives, priorities and strategic approaches should focus on.
• Control power should focus on the future rather than past.
• Problem solving approach to value-added advisor and supervised the development needs of the area should be removed to the fore.
• Key business risks, the valuation of the internal control system should be designed.
• Activities effectiveness, efficiency and economy are assessed.
• The Internal Audit function, the organization's governance, operations and information systems, including the adequacy and effectiveness of controls evaluates.

Success Factors for Creating Value

• Management
- Contact
- Forums

• SWOT Analysis

• Road Map

• True Business and Partners
- Knowledge and Experience
- Capabilities
- Tools and Techniques

• Achieve the Common Good

• Outsourcing and to encourage participation

• Share of Accomplishments

For success

• Human Resource, Technology and Capabilities
• Organization and regulation of internal audit
• Planning and Reporting Guidelines
• Training and Certification
• Quality Assurance and Improvement Program (QAR)
• Audit Committee - Independent Audit - Internal Audit relationship
• Measurement of performance

Responsibility of the Board of Directors

• Each company's Board of Directors "successful" like to have.
• Successful companies will increase market value. Increasing the market value of the increases in the value of all stakeholders to achieve.
• Determines the success of the company described as targets.
• The most fundamental responsibility of the Board of Directors of the company objectives
will come back immediately to ensure the formation of the structure.

The Role of Internal Audit in Achievement
• Implementation of corporate governance processes andvcontributes to the development.
• Determining the possible risks in management as an aid to the risks it may cause reduces losses.
• Effectiveness and appropriateness of internal controls evaluating business processes, provides efficiency.

Critical Factors of Internal Audit Event

• Ownership and the ongoing support of senior management.
• Internal audit and internal audit, the role of expectations in all correctly perceived by the employees.
• Internal audit as a process that adds value to the organization the design.

Basic Elements of Successful Implementation of Internal Audit
• Organizational Structure - Independence of Internal Audit
• The Audit Committee
• Audit Approach and Methodology - Risk Based Approach
• Quality Assurance Program
• The Audit Team