What is NTE or nature, timing, and extent for audit procedures?
Nature, timing, and extent are all factors that should be considered when the audit team plans their procedures to gather evidence. 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).
An audit team will collectively refer to this assessment as NTE and it needs to be assessed for each audit area.
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