An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements provided that
A) Distribution of the report is restricted to the specified users involved.
B) The prospective financial statements also are examined.
C) Responsibility for the adequacy of the procedures performed is taken by the accountant.
D) Negative assurance is expressed on the prospective financial statements taken as a whole.

Question

Quizplus · Accepted Answer

The accountant can accept an engagement to apply agreed-upon procedures to prospective financial statements as long as the report is restricted to specified users involved. This is because the accountant is not expressing an opinion or conclusion on the financial statements, but rather providing factual findings based on the agreed-upon procedures. Therefore, restricting the distribution of the report ensures that only the intended users rely on the information.

An Accountant May Accept an Engagement to Apply Agreed-Upon Procedures