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The engagement and report on debt compliance letters should be limited to compliance matters that ...

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The engagement and report on debt compliance letters should be limited to compliance matters that ...

The engagement and report on debt compliance letters should be limited to compliance matters that the auditor is qualified to evaluate. Which of the following engagements would be inappropriate for the CPA to attempt to evaluate?

▸ determining whether the client has properly restricted its business activities to the requirements of an agreement

▸ determining whether principal and interest payments were made when due

▸ determining whether the proper limitations were maintained on dividends, working capital, and debt ratios

▸ determining whether the accounting records were adequate for conducting an ordinary audit

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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