Definition
Instead of reviewing a signed checklist, the auditor repeats the work. Typical examples are re-preparing a bank reconciliation, rerunning an aging report from source data, or reapplying a pricing table to a sample of invoices. AU-C 500 identifies it as a procedure distinct from recalculation, which checks arithmetic only.
Why it matters in an audit or review
Reperformance is one of the few techniques that provides direct evidence of a control's operating effectiveness. A signature shows that someone reviewed something. Reperformance shows that the control produced the right answer. It also tests the information used by management in a control, such as reports.
Example
A control requires the controller to reconcile the operating account monthly. The auditor selects the June reconciliation, obtains the bank statement and the general ledger detail directly, and prepares an independent reconciliation. It agrees except for one $1,980 outstanding check (illustrative) that the client listed but that cleared in May.
Common mistakes
- Reperforming from client-prepared inputs without agreeing them to source.
- Treating a matching total as success when the reconciling items differ.
FAQ
Is reperformance more reliable than inspection of a signature?
Generally yes, for operating effectiveness. A signature shows a step was marked complete, while reperformance shows the result holds.
Sources
- AICPA, AU-C Section 500, Audit Evidence (reperformance)
- AICPA, AU-C Section 330, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error