Which audit procedure involves checking mathematical accuracy?

Which audit procedure involves checking mathematical accuracy?

• A. Recalculation
• B. Reperformance
• C. Analytical reviews
• D. Observation

Answer: (A)

Independent recalculation verifies mathematical accuracy by performing the computations again from the source data. This direct check confirms that numbers in the financial statements are arithmetically correct, catching errors like mis- additions, incorrect application of rates, or miscalculated depreciation. Reperformance, on the other hand, involves redoing a procedure to see if the client’s controls or processes produce the same result, not just confirming the math. Analytical reviews assess plausible relationships and trends in data rather than verifying exact calculations. Observation is about watching how a process is performed, not rechecking the math itself. So, recalculation is the procedure that specifically targets the accuracy of the math.

Independent recalculation verifies mathematical accuracy by performing the computations again from the source data. This direct check confirms that numbers in the financial statements are arithmetically correct, catching errors like mis- additions, incorrect application of rates, or miscalculated depreciation.

Reperformance, on the other hand, involves redoing a procedure to see if the client’s controls or processes produce the same result, not just confirming the math. Analytical reviews assess plausible relationships and trends in data rather than verifying exact calculations. Observation is about watching how a process is performed, not rechecking the math itself.

So, recalculation is the procedure that specifically targets the accuracy of the math.