Which of the Following Is Correct Relating to an Engagement

question 1

Multiple Choice

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.

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Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.

Groundwater

The subsurface water that occupies the pore spaces in soils and rocks, serving as a major source of fresh water for many areas.

Seas Saltier

A condition resulting from the evaporation of ocean water, which increases the concentration of salts, making the seas saltier.