What Are the Recalculation and Reperforming Procedures in An Audit?

Auditing is a process in which an auditor examines a subject matter. Usually, this subject matter is a client’s financial statements.

The auditors can be internal or external to that client. However, they must be independent of the client’s management. The primary objective of this process is for the auditors to form an opinion based on their work.

Auditing requires auditors to collect audit evidence. This process entails using audit procedures to help examine the subject matter.

Usually, these procedures differ from one area to another. However, auditors must use their professional judgement to determine the best course of action. Once they conclude the audit procedures, they can start their work.

There are various audit procedures that auditors may perform. Among those, two include recalculation and reperformance.

However, some people may confuse them due to the similarities between them. It is crucial to understand that these are two different audit procedures. However, they are both a part of the work the auditors perform. It is also critical to define audit procedures before discussing these two.

What is an Audit Procedure?

An audit procedure is a technique auditors use to gather audit evidence. As mentioned above, there are various types of audit procedures. It is at the auditor’s disposal to choose the best ones to use for their concerned areas.

Based on this work performed, auditors can form an opinion regarding the subject matter. Usually, this opinion requires establishing whether the subject matter is free from material misstatements.

Audit procedures allow auditors to test various areas based on an audit assertion. Usually, they consider the risks associated with the audit before determining the best course of action. This process occurs during the audit planning stage in an audit process.

The audit plan also defines the steps auditors must take to obtain audit evidence. These steps fall under audit procedures.

Audit procedures also allow auditors to establish the quality of the financial information received from the client. It helps the auditors in establishing an opinion regarding the subject matter. Usually, the specific procedures may vary from one client to another.

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However, auditors use a combination of several of these procedures to obtain the best results. Auditors can classify these procedures as substantive and analytical audit procedures.

The audit procedure used for a specific area primarily depends on the audit assertion the auditor is testing. On top of that, it also relates to the underlying subject matter. The latter also impacts the audit assertions that auditors must test. For example, account balances require specific audit procedures and assertions. On the other hand, transactions and events vary in those areas.

Overall, audit procedures are steps or techniques auditors use to obtain audit evidence. These procedures consider the assertion test and the area under consideration.

On top of that, the risks associated with the audit engagement also impact the use of specific audit procedures. There are various types of these methods that auditors can apply. However, they must use their professional judgement to determine the best course of action.

What is the Recalculation procedure in an audit?

Recalculation is an audit procedure that involves recalculating specific figures in the financial statements.

Usually, this process applies to areas that include calculations under accounting standards. It allows auditors to establish whether the estimates and methods used in those areas are accurate. Similarly, it helps them determine if the client has used the required procedures in calculating those figures.

Recalculation also involves reperforming the calculations already performed by the client. However, the auditor does not use the client’s procedures as a base. Instead, they must formulate the figures through their calculations.

This process may vary based on the area under consideration. Despite that, auditors will require some input from the financial statements. However, they obtain that data from the audited financial statements.

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Recalculation can apply to several areas within an audit. Usually, it covers areas where clients calculate and estimate amounts based on calculations.

Auditors can replicate the steps used in those areas to ensure the accuracy of the resulting figure. However, auditors must also use their professional judgement to determine if the basis used to calculate it are appropriate.

An example of recalculation in auditing includes recalculating depreciation. Usually, clients calculate this amount based on their estimates. Similarly, they use guidance from accounting standards to formulate those amounts.

Auditors can use the same steps to replicate the process performed by the client. During that process, auditors must also determine if the client complies with the requirements provided by accounting standards.

What is Reperforming in an audit?

Reperforming or reperformance is another crucial audit procedure. It also involves replicating the client’s work in various areas.

However, it does not require calculations from the auditor. Instead, it entails reperforming a specific process that the client performs.

The primary objective of reperformance is to find if any gaps exist in those processes. On top of that, it contributes to the audit findings from the auditor.

In reperformance, auditors repeat the activity that the client performs during operations. Usually, these procedures relate to the internal control systems within those operations.

Consequently, it allows auditors to ensure that the controls in place are effective. During the process, auditors may also identify weaknesses or shortcomings. Auditors use reperforming as a part of the test of controls conducted on the client.

Before reperforming a process, auditors may need to obtain an understanding of how it works. For that, they may use a walkthrough test or similar procedures.

Once they have the necessary knowledge, they can reperform those steps to identify if weaknesses exist. Auditors can reperform these processes manually or through computer-assisted audit techniques (CAATs). Regardless of how they perform it, reperforming can be a highly critical audit procedure.

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For example, auditors can reperform the bank reconciliation process for a client. This process falls under the scope of the internal control systems within a client.

Before reperforming this process, auditors must understand the steps used to conduct it. Based on that information, they can repeat those steps. This process can help determine the effectiveness of the internal control system within a client.

What is the difference between Recalculation and Reperforming procedures in an audit?

The recalculation and reperforming procedures in an audit involve replicating the work performed by the client.

They are similar in how auditors use them. However, they also differ based on various factors. On top of that, auditors also use them for different purposes.

Essentially, recalculation allows auditors to confirm the accuracy of the calculations performed by the client. Reperformance helps in testing the controls in place.

Recalculation involves using calculations to ensure the figures appearing on the financial statements are accurate.

Usually, it applies to areas where clients obtain figures using mathematical equations or formulas. Auditors can use those equations as a base to recalculate the amounts. Consequently, they can ensure the calculations performed by the client are accurate.

In contrast, reperformance involves testing the internal controls. In this process, auditors do not use calculations to ensure the accuracy of figures.

Instead, they use it to identify any weaknesses within the internal controls systems at the client. The auditor usually stays present while the client reperforms the procedures. Sometimes, though, the auditor may perform them themselves.


Audit procedures allow auditors to collect audit evidence. Consequently, they can conclude if the subject matter is free from material misstatements.

Auditors can use one of the many types of these procedures, including recalculation and reperforming. The former involves recalculating the figures reported in the financial statements. In contrast, reperformance allows auditors to test the internal controls at the client.