SchroederSchroeder, CPA, has been engaged by SomervilleSomerville Company to conduct agreed-upon procedures related to an investment performance schedule of the Red CedarRed Cedar Investment Fund. SomervilleSomerville has requested that SchroederSchroeder recalculate the rate of return on specific investments, according to an agreed-upon formula, and determine whether the computed rate of return agrees to the rate of return as listed on the Red CedarRed Cedar Statement of Investment Performance. Red CedarRed Cedar has agreed to the requested procedures as well.

A. In an agreed-upon procedures engagement, the level of assurance SchroederSchroeder, CPA will provide______ (a. is a moderate level of assurance that is expressed in the form of a negative assurance conclusion. B. is considerably greater than the assurance provided in an audit. C. results in a positive conclusion, which isexpressed in the form of an opinion. D. Varies with the specific procedures agreed to and performed.) The report should include ________ (A. a statement expressed by the CPA in the form of an opinion. B. a statement expressing that the CPA has audited the financial statements are related disclosures. C. a statement of what procedures management and the CPA agreed to and what the CPA found in performing the procedures. D. four distinct paragraphs that include a conclusion expressing limited assurance in the form of negative assurance. E. three distinct paragraphs that include a conclusion expressing limited assurance in the form of positive assurance).

B. SELECT ALL THAT APPLY SchroederSchroeder is likely to use the following evidence:

A. Obtain an understanding of Red CedarRed Cedar's method of computing rate of return.

B. Obtain Red CedarRed Cedar Statement of Investment Performance in order to make a comparison of the computed rate of return to the reported rate of return.

C. Test for proper classification of debt instruments as trading, available-for-sale, or held-to-maturity.

D. Prove the schedule of investment activity as to additions and subtractions, and trace the ending balance by category to the

general ledger.

E. Examine selected transactions near year end and related brokers' advices to determine whether they are recorded in the proper period.

F. Review minutes of board meetings to determine whether any securities are pledged as collateral.

G.Obtain and review brokerage reports, or possibly request confirmation from the broker or an independent pricing source, to verify market values for the investments, if requested by SomervilleSomerville

H.Recompute rates of return based on the agreed-upon formula.

C. To whom will the report on the agreed-upon procedures be addressed? Will the report be distributed more broadly?

Accordingly, such reports are limited in their distribution to only the involved parties, who know the procedures the CPA will perform and the level of assurance resulting from them.

A. The agreed-upon procedures report will be addressed to investors in the Red CedarRed Cedar Investment Fund.The report will not be distributed more broadly. Agreed-upon procedures reports are limited in their distribution to only the specific party who is the intended user of the report, which in this case, is the investors of the fund.

B.The agreed-upon procedures report will be addressed to SomervilleSomerville Company, and will be distributed more broadly with limitations. Agreed-upon procedures reports are somewhat limited in their distribution. In our scenario here, the report will be made available to SomervilleSomerville Company, but will not be distributed to Red CedarRed Cedar Investment Fund investors.

C.The agreed-upon procedures report will be addressed to SomervilleSomerville Company, and will not be distributed more broadly. Agreed-upon procedures reports are limited in their distribution to only the involved parties, including the practitioner, the responsible party making the assertion, and the specific party who is the intended user of the report.

D.The agreed-upon procedures report will be addressed to Red CedarRed Cedar Investment Fund, and will be distributed more broadly. Agreed-upon procedures reports are unrestricted as to distribution by the client after it is issued. This means that a client can distribute the information widely, including to prospective investors, and for sales and marketing purposes.

D. Briefly describe the language that will be included in the report related to the agreed-upon procedures.

The report would be in the form of ______ (a. a management representation letter. b. a SOC 1 report c. an Independent Accountant's Examination report d. procedures and findings.) and contain the following: (SELECT ALL THAT APPLY)

A. A title that includes the word "independent".

B. A statement that the engagement was performed in accordance with the attestation standards of the AICPA.

C. A statement that the practitioner did not perform an examination of the subject matter.

D. A list of the procedures performed and the related findings.

E. Identification of the subject matter or the written assertion, and the nature of the engagement.

F. Identification of the specific parties, including the responsible party.

G. The signature of the firm and the date of the report.

H. A statement explaining the standards required for the firm to perform procedures to obtain assurance that there are no misstatements in the financial statements.

I. A statement that the procedures performed were those agreed-upon by the parties.

J. The phrase "we are not aware of any material modifications that should be made to the accompanying interim financial statements.

K. A statement of the restrictions on the use of the report.

L. A statement expressing no responsibility for assessing internal controls of the company.