To accept an engagement to examine a client's MD&A for annual financial statements,the practitioners ordinarily must have:
A)Audited the most recent financial statement period to which the MD&A applies.
B)Determined that the client reports to the Securities and Exchange Commission.
C)Performed a detailed analysis of the client's controls over decision making.
D)Reviewed the quarterly MD&A information.

Question

Quizplus · Accepted Answer

To accept an engagement to examine a client's MD&A, the practitioners must have audited the most recent financial statement period to which the MD&A applies, as the MD&A is part of the annual financial statements. This is required by auditing standards. Option B is not a requirement for the engagement, and options C and D may be relevant in the context of the audit, but they are not specific requirements for accepting an engagement to examine the MD&A.

To Accept an Engagement to Examine a Client's MD&A for Annual