What does reperformance mean in auditing?

Reperformance in auditing refers to the process where an auditor independently executes controls or tests that were originally performed by the entity itself. This is done to verify the effectiveness of those controls and ensure that the results are accurate and reliable. By reperforming these activities, auditors can assess whether the internal controls in place are functioning correctly and yielding trustworthy outcomes.

This procedure is vital in obtaining enough audit evidence to support the auditor's conclusions. It allows the auditor to validate that the procedures and processes the entity claims to have followed were indeed performed correctly, and it also helps in identifying any discrepancies or weaknesses in those controls that may require further investigation or remediation.

The other options do not appropriately capture the essence of reperformance. For instance, examining past financial data for errors focuses on a review approach rather than independent execution. Evaluating the accuracy of financial statements addresses overall financial accuracy rather than the specific activity of independent execution of controls. Performing financial analysis of current trends, on the other hand, pertains more to analytical review procedures rather than directly testing the controls in place. Each of these alternatives describes important aspects of auditing but does not specifically define the action of reperformance itself.