Area IV: Reporting — CPA Practice Question 33

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

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

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.

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?

How to approach this question

Full Answer

Common mistakes

Practice the full CPA AUD Practice Exam 5

More questions from this exam