Describing Findings in an ,^greed-Upon Procedures Engagement Agreed-upon procedures engagements on elements, accounts, or items of a financial statement and on nonfinancial statement assertions require that the independent accountant describe both the procedures and the findings in his or her report. Following are two agreed-upon procedures—one for cash, and another for invoices—and two alternative means of reporting findings for each procedure.

1. Agreed-Upon Procedure: Cash Trace all outstanding checks appearing on a bank reconciliation as of a certain date to checks cleared in the bank statement as of the subsequent month.

a. Description of Findings: A

"All outstanding checks appearing on the bank reconciliation were cleared in the subsequent month's bank statement."

b. Description of Findings: B

"Nothing came to my attention as a result of applying the procedure."

2. Agreed-Upon Procedure: Invoices Compare the amounts of the invoices included in the over-ninety-days column of an identified schedule of aged accounts receivable of a specific customer (as of a certain date) to the amounts and invoice dates shown on the outstanding invoices, and determine whether or not the amounts agree, and whether or not the invoice dates precede the date indicated on the schedule by more than ninety days.

a. Description of Findings: A

"All outstanding invoice amounts agreed with the amounts shown on the schedule in the over-ninety-days column, and the dates shown on such invoices preceded the date indicated on the schedule by more than ninety days."

b. Description of Findings: B

"The outstanding invoice amounts agreed within an approximation of the amounts shown on the schedule in the over-ninety-days column, and nothing came to our attention to indicate that the dates shown on the invoices preceded the date indicated on the schedule by more than ninety days."

Required: 

For each agreed-upon procedure, explain which description of findings, A or B, is appropriate, and why.