A CPA's Report on Agreed-Upon Procedures Related to Management's Assertion

question 48

Multiple Choice

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

• A) A statement of limitations on the use of the report.
• B) An opinion about whether management's assertion is fairly stated.
• C) Negative assurance that control risk has not been assessed.
• D) An acknowledgement of responsibility for the sufficiency of the procedures.

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Definitions:

Binding Contract

A legal agreement between parties that is enforceable by law, where each party has specific obligations.

Agreement

A mutual understanding between two or more parties about their respective rights and duties regarding past or future performances.

Offer

An offer is a proposal presented by one party to another with the intention of entering into a binding agreement, subject to acceptance by the receiving party.

Acceptance

In contract law, the expression of assent to the terms of an offer in such a manner that binds both the offeror and the offeree to the terms of the contract.