The importance of control environment in an organization for an independent auditor to determine nature,timing, and extent of substantive tests: An application in Turkey

Sezen Uludag
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Sezen Uludag: Anadolu University, EskiÅŸehir, Turkey

Journal of Administrative and Business Studies, 2016, vol. 2, issue 6, 294-303

Abstract: This paper explains the effect of control environment as a one of the components of an 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 judgement on the structure of 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 with control environment in Turkey and the frequency of the data analyzed. As a result, the factors of control environment are examined and the importance of the control environment in auditors’ decisions is emphasized.

Keywords: Control environment; Internal control; Substantive tests (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2016:p:294-303

DOI: 10.20474/jabs-2.6.4

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