The following is an example of a test that an assurance firm might use at the gathering-evidence stage of an assignment.
For the example below, select the type of procedure that the test illustrates.
- Using computer-assisted audit tools (CAATs) to check the ageing of the year-end list of aged receivables
Select ONE answer:
- Discussion
- Confirmation
- Recalculation
- Reperformance
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct – Reperformance is the auditor’s independent execution of procedures or controls which were originally performed as part of the entity’s internal control, therefore using CAATs to check the ageing of the year-end list of aged receivables is a reperformance of that ageing analysis, which is itself a control over the recoverability of receivables.
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