Agreed Upon Procedure Engagements

Question 1

agreed-upon procedures engagement

Answer 1

1. CPA must be independent
2. parties involved (not CPA) are responsible for sufficiency of procedures
3. list of procedures and findings is included in report
   restriction alert is optional NOT mandatory

Question 2

how does an agreed-upon procedures engagement work?

Answer 2

engaging party responsible for sufficiency of procedures provides procedures to CPA
CPA performs procedures of the party responsible for information
CPA reports findings to engaging party

Question 3

agreed upon procedures do not provide any

Answer 3

assurance and does not issue opinion or conclusion even about I/C

Question 4

completion of agreed upon procedures is date

Answer 4

used in report because CPAs accept responsibility for everything up to the report date

Question 5

to avoid confusing the reader, a downgrade engagement should…

Answer 5

NOT include reference to original audit engagement but they can include reference to procedures performed
only when reasonable justification exists

Question 6

agreed upon procedures report includes:

Answer 6

1. title with the term independent
2. identify engaging parties and subject matter
3. engaging party acknowledges procedures were appropriate to intended purpose
4. description of procedure and findings from each
5. when applicable, a restriction alert

Question 7

use of ____________ between the engaging party and practitioner is required for agreed-upon procedures

Answer 7

engagement letter

Question 7

examinations provide

Answer 7

positive assurance about whether the subject matter is fairly stated based on certain criteria