Which of the following is correct relating to an engagement to apply agreed-upon procedures to prospective financial statements?
A)Use of the report is restricted to the specified users.
B)Such engagements are permissible for forecasts but not for projections.
C)Responsibility for the adequacy of the procedures performed is taken by the practitioner.
D)Such engagements are not permissible under the professional standards.

Question

Quizplus · Accepted Answer

When performing an engagement to apply agreed-upon procedures to prospective financial statements, the use of the report is restricted to the specified users. This means that the report cannot be used by anyone other than those parties who have agreed to the procedures to be performed and the report to be issued. Choice B is incorrect because engagements to apply agreed-upon procedures can be performed on both forecasts and projections. Choice C is incorrect because responsibility for the adequacy of the procedures performed is taken by the responsible party, not the practitioner. Choice D is incorrect because such engagements are permissible under professional standards.

Which of the Following Is Correct Relating to an Engagement