C. Option C
D. Option D

Answer(s): A
Explanation:
Choice "a" is correct. Positive assurance is provided in all of the listed reports except
"compliance with contractual or regulatory requirements related to audited financial statements."
Negative assurance is provided in this report.
Choices "b", "c", and "d" are incorrect, based on the above Explanation.
QUESTION: 196
Which of the following situations would not result in restricted use language being included in an
auditor's special report?

A. A report on a specified element in a financial statement, where that element is prepared in
accordance with the terms specified in a related contract.
B. A report on a client's compliance with a regulatory requirement, assuming the report is
prepared based on a financial statement audit of the complete financial statements.
C. An "OCBOA" report on financial statements prepared in conformity with requirements
established by a regulatory agency, assuming that the auditor's report is a matter of public
record.
D. A report on an incomplete financial presentation that is prepared in conformity with GAAP,
assuming that the presentation and report wil be filed with a regulatory agency and included in
a document distributed to the general public.

Answer(s): D
Explanation:
Choice "d" is correct. A report on an incomplete financial presentation that is otherwise prepared
in conformity with GAAP generally would contain restricted use language; however, an
exception occurs when the presentation and the report are filed with a regulatory agency and
included in a document distributed to the general public. Choice "a" is incorrect. A report on a
specified element in a financial statement, where that element is prepared in accordance with
the terms specified in a related contract, would contain restricted use language. Choice "b" is
incorrect. A report on a client's compliance with a regulatory requirement, assuming the report is
prepared based on a financial statement audit of the complete financial statements, would
contain restricted use language. Choice "c" is incorrect. An "OCBOA" report on financial
statements prepared in conformity with requirements established by a regulatory agency should
contain restrictive use language. This is appropriate even though law or regulation may make
the auditor's report is a matter of public record.
QUESTION: 197
Which of the following is true about management representations obtained during an
engagement to review the financial statements of a nonissuer?

A. Written representations from the current management are required for all periods being
reported on.
B. Written representations with respect to prior periods should not be provided by the current
management if they were not present during those periods.
C. Written representations should be addressed to members of management whom the

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