An auditor is engaged to perform an agreed-upon procedures (AUP) engagement regarding a client's compliance with a specific lease agreement. Which of the following is a REQUIRED condition for this engagement?

Answer options:

The auditor must provide an opinion on compliance.

The auditor must be independent of the client and the specified parties.

The report must be restricted to the use of the audit committee only.

The auditor must perform a risk assessment of the lease compliance.

How to approach this question

AUP Rules: 1. Independence Required. 2. No Opinion (Findings only). 3. Procedures defined by parties. 4. Restricted Use (usually).

Full Answer

B.The auditor must be independent of the client and the specified parties.✓ Correct

The auditor must be independent of the client and the specified parties.

AT-C 215 states that a practitioner must be independent to perform an agreed-upon procedures engagement. The report lists procedures and findings, not an opinion.

Common mistakes

Thinking independence is not required because there is no opinion.

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