[Vanessachy]

Which of the following is a false statement regarding restrictions on the use of an accountant’s compilation or review report on subject matter or presentations based on measurement or disclosure criteria contained in contractual agreements or regulatory provisions?

A.

Accountant’s reports on subject matter or presentations prepared in conformity with an OCBOA are ordinarily not restricted regarding use.

B.

If an accountant issues a single combined report covering both subject matter or presentations that require a restriction and subject matter or presentations that do not ordinarily require a restriction, use of the combined report should be restricted to the specified parties.

Incorrect C.

Where required by law or regulation, a separate restricted-use report may be included in a document that also contains a general-use report.

D.

If an accountant issues a document including both a separate restricted-use report and a general-use report, both reports should be restricted to the specified parties.

Why the answer is D? I kind of agree c is correct, but i feel D is correct as well.

According to the explanation, the answer should be C

This is the explanation from Ninja, If the accountant issues a single combined report covering both (a) subject matter or presentations that require a restriction on use to specified parties and (b) subject matter or presentations that ordinarily do not require such a restriction, the use of a single combined report should be restricted to the specified parties.

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[Vanessachy]

Which of the following statements would least likely appear in an auditor's engagement letter?
A.

Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses.
Incorrect B.

During the course of our audit, we may observe opportunities for economy in, or improved controls over, your operations.
C.

Management is responsible for the entity's financial statements.
D.

After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.

Can anyone explain this one as well, I would think D is correct, here is the explanation,
Of the statements listed, the least likely to appear in an auditor's engagement letter is a statement assuring the client that the auditor, after performing preliminary analytical procedures, will discuss other procedures considered necessary to complete the engagement. Among others, what the engagement letter should contain are statements regarding:

the basis of the auditor's fee,
the objective of the engagement and additional work to be performed such as management advisory services, and
the fact that management is responsible for the entity's financial statements.

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

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