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?
Ask the Tutor ACCA AAA
disaggregations v/s breakdown
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?
You're not going to use them interchangeably if you reserve the use of the word disaggregated for the description of analytical procedures.
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