ICAEW ARF · Chapter 8 · Question 2 of 12
An auditor independently prepares the client's year-end bank reconciliation to check that the client's control has operated correctly. What type of procedure is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Reperformance
Explanation
Reperformance is the auditor's independent execution of procedures or controls originally performed by the entity, such as a bank reconciliation. Recalculation checks the mathematical accuracy of documents or records, observation involves watching a process, and external confirmation is a direct response from a third party.
More Audit procedures and substantive testing MCQs
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