Detailed Answer
(a) The requirement is to identify the circumstance in
which an accountant may accept an engagement to apply agreedupon
procedures to prospective financial statements. Answer (a)
is correct because AT 301 states that an accountant may accept
an engagement to apply agreed-upon procedures to prospective
financial statements provided that (1) the specified parties involved
have participated in establishing the nature and scope of
the engagement and take responsibility for the adequacy of the
procedures to be performed, (2) use of the report is to be restricted
to specified parties involved, and (3) the prospective
financial statements include a summary of significant assumptions.
Answer (b) is incorrect because the prospective financial
statements need not be examined. Answer (c) is incorrect because
responsibility for the adequacy of the procedures is taken
by the specified parties. Answer (d) is incorrect because a summary
of findings may be provided based on the agreed-upon
procedures.