An agreed-upon procedures engagement is significantly more limited in scope than an examination. An accountant may perform an agreed-upon procedures attestation engagement for prospective financial statements provided that attestation standards are complied with and eleven criteria are met. Identify five of the eleven criteria below.
What will be an ideal response?
Answer should include 5 of the following:
1. The practitioner is independent.
2. Either (a) the party wishing to engage the practitioner is responsible for the subject matter, or (b) the party wishing to engage the practitioner is not responsible for the subject matter but is able to provide the practitioner with evidence of a third party's responsibility for the subject matter.
3. The practitioner and the specified parties agree upon the procedures to be performed by the practitioner.
4. The specified parties take responsibility for the sufficiency of the agreed-upon procedures for their purposes.
5. The specific subject matter to which the procedures are to be applied is subject to reasonably consistent measurement.
6. Criteria to be used in the determination of findings are agreed upon between the practitioner and the specified parties.
7. The procedures to be applied to the specific subject matter are expected to result in reasonably consistent findings using the criteria.
8. Relevant evidence is expected to exist to provide a reasonable basis for expressing the findings in the practitioner's report.
9. Where applicable, the practitioner and the specified parties agree on any materiality limits for reporting purposes.
10. Use of the report is restricted to the specified parties.
11. For agreed-upon procedures engagements on prospective financial information, the prospective financial statements include a summary of significant assumptions.
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