Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

A reporting accountant's engagement regarding a written report on a financial reporting framework typically involves assessing historical financial statements based on specific criteria. The statement about a reporting accountant being prohibited from providing a report on future transactions aligns with the established guidelines in the profession. Reporting accountants focus on past transactions and their presentation under the applicable financial reporting framework.

This means that when it comes to engagements, the role is generally limited to analyzing events that have already occurred rather than predicting or assessing future conditions or transactions.

The other statements correctly reflect the necessary components of a reporting accountant's engagement. For instance, reports must clearly identify the specific entity involved to maintain clarity regarding who the report applies to, ensuring that it does not lead to misinterpretation. Additionally, restrictions on the use of the report must be included to inform users of the report about the intended audience and limitations, preventing misunderstandings about its applicability. Furthermore, a reporting accountant may not provide a report on a future transaction, reinforcing the importance of focusing on historical data.