A CPA is performing an agreed-upon procedures engagement regarding a client's compliance with a specific lease agreement. Which of the following statements should be included in the practitioner's report?

Answer options:

A statement that the practitioner is independent is not required.

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

An opinion on compliance with the lease agreement.

A statement that the procedures were performed in accordance with GAAS.

How to approach this question

AUP Key Concept: The client defines the procedures, so the client takes responsibility for their sufficiency. The auditor just does them.

Full Answer

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

In an Agreed-Upon Procedures (AUP) engagement, the specified parties (client) determine the procedures. Therefore, the report must state that the sufficiency of these procedures is solely the responsibility of the specified parties. The practitioner disclaims responsibility for sufficiency.

Common mistakes

Thinking the auditor determines the procedures in an AUP.

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