Detailed Answer
(c) The requirement is to identify the statement that is
not correct concerning “specified parties†of an agreed-upon
procedures report under either the auditing or attestation standards.
Answer (c) is correct because while a practitioner should
establish a clear understanding regarding the terms of the engagement,
preferably in an engagement letter, no such engagement
letter is required. Answers (a) and (b) are incorrect because
the specified parties must agree on the procedures to be
performed and take responsibility for their adequacy. Answer
(d) is incorrect because an additional party may be added as a
specified party after completion of the engagement.