Attestation Reporting Practice Test

You are performing agreed-upon procedures for a nonissuer related to a schedule of employee headcount used for a state incentive program, under AICPA attestation standards (AT-C). After performing the procedures, you discover an error in the schedule that management refuses to correct, but your procedures were performed as agreed. How should discrepancies be communicated in the report?

A nonissuer engages you to perform an examination of management’s compliance with a debt covenant ratio as of year-end under AICPA attestation standards (AT-C). Management will not provide the underlying loan agreement, and the bank will not confirm the covenant terms; you cannot determine the applicable criteria for the ratio. Which factors would most likely affect the report's conclusions?