Audit Procedures for Agreed$-$Upon Procedures Engagements:

Agreed$-$upon procedures engagements involve the auditor performing specific procedures agreed upon by the auditor, the entity, and any appropriate third parties Unlike audits or reviews, where the auditor provides assurance on the financial statements as a whole, agreed$-$upon procedures engagements focus on specific areas or aspects of the financial statements or other financial information.

Key Characteristics of Agreed$-$Upon Procedures Engagements:

Customized Procedures: The procedures performed in agreed$-$upon procedures engagements are tailored to meet the specific needs and requirements of the enti and other stakeholders. These procedures may vary widely depending on the objectives of the engagement and the agreed$-$upon terms.

Limited Assurance: Unlike audits, where the auditor provides reasonable assuranc and reviews, where the auditor provides limited assurance, agreed$-$upon procedur engagements provide no assurance. Instead, the auditor performs specific procedures agreed upon by the parties involved and provides findings based on those procedures without expressing an opinion or conclusion on the financial statements as a whole.

Scope Flexibility: The scope of agreed$-$upon procedures engagements can be flexible and may cover various aspects of financial information, compliance requirements, or specific transactions. The parties involved agree on the nature, timing, and extent of the procedures to be performed, allowing for customization based on the objectives of the engagement.

Limited Distribution: The results of agreed$-$upon procedures engagements are typically only provided to the parties involved in the engagement, such as the entity's management, governing board, or other specified users. Unlike audit repo which are generally distributed to a wider audience, the findings of agreed$-$upon procedures engagements are often restricted to the agreed$-$upon parties.

Question:

In agreed$-$upon procedures engagements, what level of assurance does the audito provide?

A$)$ Reasonable assurance

B$)$ Limited assurance

C$)$ No assurance

D$)$ Moderate assurance