A CPA's report on agreed-upon procedures related to management's assertion about an entity's compliance with specified requirements should contain:
A)a statement of limitations on the use of the report.
B)an opinion about whether management's assertion is fairly stated.
C)negative assurance that control risk has not been assessed.
D)an acknowledgement of responsibility for the sufficiency of the procedures.

Question

Quizplus · Accepted Answer

When a CPA conducts agreed-upon procedures related to management's assertion about an entity's compliance with specified requirements, the report should include a statement of limitations on the use of the report. This is because the CPA does not express an opinion on the assertions made by management, but only reports on the procedures performed and the findings. As such, the report cannot be used as a substitute for an audit or an expression of an opinion on the entity's compliance.

A CPA's Report on Agreed-Upon Procedures Related to Management's Assertion