A listed entity is required to provide its lender with a report specifically dealing with its trade

A listed entity is required to provide its lender with a report specifically dealing with its trade receivables as at 31 March 2027.

The CFO proposes that the Chartered Accountant should:

obtain the receivables ledger from the entity;
select specified balances agreed upon with the lender;
compare those balances with subsequent collections;
inspect invoices and supporting documents for balances where collections have not occurred; and
report the factual results of the procedures performed.

The lender does not require an opinion on the trade receivables and has specifically agreed that the report should contain the procedures performed and the factual findings arising from those procedures.

The engagement partner considers the following alternatives:

Statement 1: Since the engagement relates only to one specific element of the financial statements, it necessarily falls under SA 805.

Statement 2: Since the procedures are specifically agreed with the lender and the report is restricted to factual findings, the engagement may fall under SRS 4400.

Statement 3: If performed under SRS 4400, the practitioner would express no assurance conclusion on whether the trade receivables are fairly stated.

Statement 4: Since substantive audit procedures are being performed, the practitioner must express at least limited assurance on the trade receivables.

Which ONE of the following is correct?

A. Statements 1 and 4 only.

B. Statements 2 and 3 only.

C. Statements 1, 2 and 3 only.

D. Statements 2, 3 and 4 only.