AUD exam skill

Recalculation vs. reperformance: choose the procedure by objective

Use recalculation for mathematical accuracy and reperformance for independent execution of a control or procedure, with worked AUD examples.

The decision that earns the point

Identify the engagement facts and governing framework

Recalculation checks the mathematical accuracy of documents or records. Reperformance is the auditor's independent execution of a procedure or control that the entity originally performed. The distinction depends on the audit objective: recomputing a number is recalculation, while independently carrying out the steps of a reconciliation or control is reperformance.

Exam use

AUD can present the same document with different objectives and ask you to classify the procedure, identify the assertion addressed, or decide whether the evidence proves only mathematical accuracy or also proves that a control operated as designed.

Check the official exam scope

Your scratch-paper plan

Solve it in three moves

  1. 1

    Name the evidence objective

    Decide whether the task is to check arithmetic or independently execute the entity's procedure or control before labeling the audit procedure.

    PCAOB AS 1105: Audit Evidence
  2. 2

    Recalculate only the mathematical claim

    Recompute extensions, totals, ratios, depreciation, interest, or another numerical output while keeping input validity as a separate evidence question.

    PCAOB AS 1105: Audit Evidence
  3. 3

    Reperform the complete control logic

    Independently execute the steps, criteria, source comparisons, investigation, and conclusion that define the control or procedure.

    PCAOB AS 1105: Audit Evidence

Worked problem

Work the facts before choosing the answer

An auditor recomputes annual straight-line depreciation from verified cost, residual value, and useful life. The same auditor then independently matches a sample of purchase orders, receiving reports, and invoices and investigates differences using the client's three-way-match criteria.

CPAPass exam analysis using the stated assumptions

Show the work

The first procedure checks the mathematical result and is recalculation. The second independently executes the entity's control steps and is reperformance, assuming the auditor uses the full criteria rather than only inspecting evidence that someone signed the control.

Rule source: PCAOB AS 1105: Audit Evidence

Answer

Classify the two procedures separately. The recalculation supports mathematical accuracy of depreciation using the stated inputs; reperformance provides evidence about operation of the three-way-match control for the selected items.

Rule source: PCAOB AS 1105: Audit Evidence

Do it now

Test the same decision with a fresh question

Start with free AUD practice. Create an account only when you want the 5-day no-card CPAPass trial and continued section practice.

The trap and the repair

Common trap

Calling every auditor-created computation reperformance confuses redoing arithmetic with independently executing the company's procedure or control.

Repair

Ask whether the auditor is proving a number adds correctly or proving a process works when independently carried out.

Authority and scope boundary

PCAOB AS 1105 supplies the issuer definitions and evidence framework used in the illustration. Current AU-C 500 controls the corresponding nonissuer evidence analysis. Neither procedure alone proves that underlying inputs are valid or that evidence is sufficient for every assertion.

2026 Uniform CPA Examination Blueprints and PCAOB AS 1105: Audit Evidence were reviewed on 2026-08-14. Check a newer authority when the effective date or facts change.

Procedure comparison

The object in front of the auditor does not determine the procedure

The auditor can use one schedule for several procedures. The action and evidence objective determine the correct label.

Audit actionCorrect classificationWhat it does not prove by itselfAuthority
Foot an accounts receivable agingRecalculation of mathematical accuracyWhether customer balances exist or are collectiblePCAOB AS 1105: Audit Evidence
Independently prepare the bank reconciliation using bank and ledger dataReperformance of the reconciliation procedureWhether every source document is authentic without further evaluationPCAOB AS 1105: Audit Evidence
Review evidence that a supervisor signed a reconciliationInspection, unless the auditor independently executes the controlThat the supervisor applied every control criterion effectivelyPCAOB AS 1105: Audit Evidence
Recompute warranty expense from management's percentagesRecalculation of the modeled amountReasonableness of the percentages or completeness of underlying claims dataPCAOB AS 1105: Audit Evidence

After a miss

Repair a procedure-label miss

  1. 1

    Underline the auditor's verb and write arithmetic or process beside it before considering the answer choices.

  2. 2

    Change the depreciation example so the auditor independently executes management's asset-approval control and explain why the label changes.

  3. 3

    Classify four fresh procedures, then state one assertion supported and one limitation for each selected answer.

Your exam workflow

  1. Step 1Identify the requirementDecide whether the task is to check arithmetic or independently execute the entity's procedure or control before labeling the audit procedure.PCAOB AS 1105: Audit Evidence
  2. Step 2Classify the factsRecompute extensions, totals, ratios, depreciation, interest, or another numerical output while keeping input validity as a separate evidence question.PCAOB AS 1105: Audit Evidence
  3. Step 3Apply the authorityIndependently execute the steps, criteria, source comparisons, investigation, and conclusion that define the control or procedure.PCAOB AS 1105: Audit Evidence
  4. Step 4Check the outputClassify the two procedures separately. The recalculation supports mathematical accuracy of depreciation using the stated inputs; reperformance provides evidence about operation of the three-way-match control for the selected items.PCAOB AS 1105: Audit Evidence

Quick questions

What is the key rule?

Recalculation checks the mathematical accuracy of documents or records. Reperformance is the auditor's independent execution of a procedure or control that the entity originally performed. The distinction depends on the audit objective: recomputing a number is recalculation, while independently carrying out the steps of a reconciliation or control is reperformance.

How can this topic be tested on the CPA Exam?

AUD can present the same document with different objectives and ask you to classify the procedure, identify the assertion addressed, or decide whether the evidence proves only mathematical accuracy or also proves that a control operated as designed.

What mistake most often changes the result?

Calling every auditor-created computation reperformance confuses redoing arithmetic with independently executing the company's procedure or control. Ask whether the auditor is proving a number adds correctly or proving a process works when independently carried out.

Where should I practice the decision?

After the worked example, open the AUD free-practice link and work a fresh question that tests the same decision. If the miss depends on Audit procedure selection by assertion, review that handoff before trying another set.

Sources behind the rule