[Anonymous]

Hi Guys!

I’m not really understanding the agreed-upon procedures. Can someone please help me understand the agreed upon procedures? I’m not sure why is so confusing to me. I have a question below

A CPA’s report on agreed-upon procedures related to management’s assertion about an entity’s compliance with specified requirements should contain:

a. An opinion about whether management’s assertion is fairly stated.

b. A statement of limitations on the use of the report.

c. Negative assurance that control risk has not been assessed.

d. An acknowledgment of responsibility for the sufficiency of the procedures.

The answer is B. I’m not understanding why is not D. The explanation is not very clear to me.

Please help me understand this topic!

Thank you!

[Anonymous]

It can't be D because the CPA is not responsible for sufficiency or compliance. They're just doing what they agreed to do. B is correct because agreed-upon procedures are restricted-use.

[Anonymous]

Ahhh it makes sense the way you phrase it.

Thank you!

[Skynet]

Just think of agreed upon procedures like a girlfriend's or wife's anniversary.

You screwed up many times by getting her a crappy gift.

Because of that, you are only allowed to get her a gift base on a list of acceptable gifts she gives you. Getting her a gift outside the list is a no-no. Thus, agreed upon procedures.

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[Anonymous]

Skynet,

I'm not sure that's the best analogy. 😛

[Anonymous]

Lmaoooo!! Awesome analogy skynet

[Author]

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