Arel, CPA, was engaged by a group of royalty recipients to apply agreed-upon procedures to financial data supplied by Modit Co. regarding Modit's written assertion about its compliance with contractual requirements to pay royalties. Arel's report on these agreed-upon procedures should contain a(n):
A) Disclaimer of opinion about the fair presentation of Modit's financial statements.
B) List of the procedures performed (or reference thereto) and Arel's findings.
C) Opinion about the effectiveness of Modit's internal control activities concerning royalty payments.
D) Acknowledgment that the sufficiency of the procedures is solely Arel's responsibility.

Question

Quizplus · Accepted Answer

As Arel was engaged to apply agreed-upon procedures to financial data supplied by Modit Co., the report should contain a list of the procedures performed and their findings as required by the engagement. The report should not contain an opinion, acknowledgment, or disclaimer of opinion, as these are not relevant to the specific engagement.

Arel, CPA, Was Engaged by a Group of Royalty Recipients