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Scope in an Audit – CPA Exam Definitions

Scope in an Audit CPA Exam

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Scope in an Audit

In an audit, the term “scope” refers to the extent and boundaries of the auditor’s work required to achieve the audit’s objectives. It involves determining the areas and accounts of the financial statements that will be examined, as well as the nature, timing, and extent of the audit procedures to be performed.

The scope of an audit depends on several factors, including:

The scope of an audit is an essential aspect of the audit planning process, as it helps ensure that the auditor obtains sufficient appropriate audit evidence to form an opinion on the financial statements. It is typically documented in an audit plan or audit strategy, which serves as a roadmap for the audit team, outlining the objectives, risks, and procedures for the engagement.

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