ExpertHard1 markMultiple Choice
CPA · Question 45 · Area IV: Forming Conclusions and Reporting
An auditor is performing an agreed-upon procedures engagement regarding a client's compliance with a specific lease agreement. Which of the following statements is TRUE regarding the practitioner's report?
An auditor is performing an agreed-upon procedures engagement regarding a client's compliance with a specific lease agreement. Which of the following statements is TRUE regarding the practitioner's report?
Answer options:
A.
The report should include an opinion on compliance.
B.
The report should provide negative assurance on compliance.
C.
The report should list the procedures performed and the specific findings.
D.
The report is available for general use.
How to approach this question
Agreed-Upon Procedures (AUP): No Opinion. No Assurance. Just 'Procedures and Findings'.
Full Answer
C.The report should list the procedures performed and the specific findings.✓ Correct
C
In an agreed-upon procedures engagement (AT-C 215), the practitioner does not express an opinion or conclusion. Instead, the report lists the specific procedures performed (as agreed to by the specified parties) and the findings resulting from those procedures.
Common mistakes
Thinking AUP provides Negative Assurance (that's a Review).
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