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maam how are the two audit procedures “breakdown of expenses/sales….” v/s “disaggregation of sales/expenses…” different from each other?
is it that they test different assertions?
Given the total balance amount – e.g. receivables – I think you would ask for a breakdown – which would be a list of balances from the receivables ledger.
Given a total amount of something like repairs and maintenance, I think you would ask for a breakdown too.But if, typically looking at sales/gross profit in analytical procedures, disaggregation suggests that your are looking for something that has been aggregated. For example, the aggregation of sales by product line/geographic location/division, etc.
I think disaggregation has a narrower and more specific meaning of restoring the make-up of a total into constituent parts/sub-classifications.
got it ma’am! But if by mistake in the exam we use these words interchangeably then do we lose marks?
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