An auditor is performing a 'Agreed-Upon Procedures' (AUP) engagement. Which of the following is a requirement for the report?

Answer options:

An opinion on the subject matter.

A statement that the sufficiency of the procedures is solely the responsibility of the specified parties.

Negative assurance on the findings.

A statement that the engagement was conducted in accordance with GAAS.

How to approach this question

AUP = No Opinion, No Assurance, Restricted Use (usually), Client responsible for Sufficiency.

Full Answer

B.A statement that the sufficiency of the procedures is solely the responsibility of the specified parties.✓ Correct

A statement that the sufficiency of the procedures is solely the responsibility of the specified parties.

In an AUP engagement, the specified parties determine the procedures. The practitioner explicitly disclaims responsibility for the sufficiency of those procedures for the parties' purposes.

Common mistakes

Thinking AUP gives negative assurance.

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