ACCA AA · Chapter 9 · Question 7 of 10
What is the difference between recalculation and reperformance as audit procedures?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Recalculation checks the mathematical accuracy of records; reperformance is the auditor independently executing procedures or controls originally performed by the entity
Explanation
ISA 500 describes recalculation as checking the mathematical accuracy of documents or records, such as casting a ledger or recomputing depreciation. Reperformance involves the auditor independently carrying out a procedure or control, such as re-doing a bank reconciliation, and is often used as a test of controls.
More Audit evidence and financial statement assertions MCQs
- Q9The auditor of Dowel Co is concerned that revenue may be overstated by recording sales that did not occur. Which procedure is most…
- Q10A bank loan repayable in instalments over five years has been shown entirely within non-current liabilities. Which assertion has been…
- Q1Under ISA 500, what do the terms 'sufficient' and 'appropriate' refer to?
- Q2Which of the following sources of audit evidence about a trade receivable balance is generally the most reliable?
- Q3The auditor selects a sample of assets from the non-current asset register and physically inspects them. Which assertion is primarily…