TAF PUBLISHING

This paper explains the effect of the control environment as one of the components of internal control in performing substantive procedures by auditors. Control environment constitutes the tone of an organization and represents the understanding of control from the point of all of the employees in an organization. So to determine the nature, timing, and extent of substantive test which the auditor will perform to detect material misstatements at the assertion level, auditors should examine the control environment and have a judgment on the structure of the control environment. Because of the holistic effect of the control environment, it is one of the most effective determinants for auditors. Auditors are asked about some factors related to the control environment in Turkey and the frequency of the data analyzed. As a result, the factors of the control environment are examined, and the importance of the control environment in auditors’ decisions is emphasized.