ICAEW ARF · Chapter 1 · Question 8 of 10
Which of the following statements about an agreed-upon procedures engagement is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The practitioner reports factual findings and the users draw their own conclusions from them
Explanation
In an agreed-upon procedures engagement the practitioner performs procedures agreed with the engaging party and reports what was found. No conclusion is expressed, so no assurance is given and the engagement is not an assurance engagement. The procedures are set by agreement, not by the practitioner's own risk assessment.
More The concept of and need for assurance MCQs
- Q10Which of the following statements correctly compares reasonable assurance and limited assurance engagements?
- Q1Which of the following is NOT one of the elements of an assurance engagement?
- Q2In the statutory audit of a UK limited company, which party is the 'responsible party' in the three-party relationship?
- Q3Which of the following wordings would be typical of the conclusion in a limited assurance engagement?
- Q4What is the main reason why the shareholders of a large company need an independent audit of its financial statements?