What is nature timing and extent in audit?

Nature relates to the type of test that will be performed (observation, confirmation, reconciliation). Timing refers to when the test will be performed (interim or at year-end). Extent relates to the amount of testing that will be performed (10 samples or 30 samples).

What does nature mean in auditing?

The nature of an audit procedure refers to its purpose (that is, test of controls or substantive procedure) and its type (that is, inspection, observation, inquiry, confirmation, recalculation, reperformance, or analytical procedure).

What are extended audit procedures?

Auditors will typically extend audit procedures by increasing the sample size and number of transactions they test. Extended audit procedures could also mean using different evaluation techniques on samples of high-risk transactions or simply testing all the transactions of a certain nature.

What is the timing of the audit?

15 Timing refers to when audit procedures are performed or the period or date to which the audit evidence applies. . 16 The auditor may perform tests of controls or substantive procedures at an interim date or at period end.

What are the different types of audit report?

Unqualified opinion-clean report. Qualified opinion-qualified report. Disclaimer of opinion-disclaimer report. Adverse opinion-adverse audit report.

What is the nature of audit documentation?

Audit documentation refers to the records or documentation of procedures that auditors performed, the audit evidence that they obtained and the conclusion that makes by them based on the evidence obtained. Audit documentation is sometimes called audit working paper or working paper.

What is timing of audit?

Timing of an audit procedure refers to when it is performed, or the period or date to which the audit evidence applies. A7. Extent of an audit procedure refers to the quantity to be performed, for example, a sample size or the number of observations of a control activity.

What is a combined audit approach?

A combined approach using both tests of controls and substantive procedures is an effective approach. Note that irrespective of the approach selected, the auditor must design and perform substantive procedures for each material class of transactions, account balance, and disclosure.

Why is the timing of an audit important?

Many businesspeople think of an audit as a process that only happens after year end, but properly planning and timing audit procedures to occur throughout the year can make audits more effective, more efficient and reduce strain on client support personnel.