An Accountant May Accept an Engagement to Apply Agreed-Upon Procedures

question 7

Multiple Choice

An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements provided that

• A) Distribution of the report is restricted to the specified users involved.
• B) The prospective financial statements also are examined.
• C) Responsibility for the adequacy of the procedures performed is taken by the accountant.
• D) Negative assurance is expressed on the prospective financial statements taken as a whole.

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Definitions:

Methods Analysis

The systematic examination of activities in order to improve the efficient use of resources.

Skills Needed

Specific abilities, knowledge, or expertise required to perform tasks or jobs effectively.

Micro-Motions

Very small, detailed motions that are analyzed to study and improve the efficiency of manual tasks or operations.