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The accounting profession is concerned about whether companies are in compliance with the varies federal and state environmental laws and regulations and whether they have reported environmental liabilities in their assessing compliance with the company policies and procedures. At section 601, "Compliance Attestation", allows a practitioner to perform agreed upon procedures to assist users in evaluating management's written assertions about (1) the entity's compliance with specified requirements. (2) The effectiveness of the entity's internal control over compliance of (3) both
Required:
Discuss how a practitioner would conduct an agreed upon procedures engagement to evaluate an entity's written assertion that it was in compliance with its state's environmental laws and regulations
Assume that this same entity maintained an internal control system that monitored the entity's environmental laws and regulations. Discuss how a practitioner would evaluate the effectiveness of the entity's internal control over compliance.
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