IFAC Releases Publication on Agreed-Upon Procedures Engagements

The International Federation of Accountants (IFAC) has released the publication, Agreed-Upon Procedures (AUP) Engagements: A Growth and Value Opportunity (Publication).

The International Accounting and Assurance Standards Board (IAASB) is currently working on a standard setting project proposal to revise the International Standard on Related Services (ISRS) 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information, following the issuance of a Discussion Paper and review of feedback on the Discussion Paper. ISRS 4400 in its current form will be effective until adoption of a revised standard.

For purposes of ISRS 4400, in an agreed-upon procedures engagement, a practitioner performs specified procedures that the practitioner has agreed to with the entity and appropriate third parties. The practitioner prepares a report on the factual findings without assurance, opinion or conclusion. Further, the practitioner does not distribute the report publicly but only to the parties specified in the agreement.

The IFAC designed the Publication for use by practitioners, policy makers, and regulators. It discusses the following concerning agreed-upon procedures engagements:

  • What an agreed-upon procedures engagement is
  • The benefits to clients of offering such services and such services are appropriate
  • Examples of financial and non-financial information agreed-upon procedures engagements, including case studies with examples of procedures that might be applied
  • The illustration of an agreed-upon procedures engagement report from ISRS 4400.

The AICPA is also currently working on projects to adopt a Selected Procedures standard and revise AT-C section 215, Agreed-Upon Procedures Engagements.

The Publication is available on this link. https://www.ifac.org/publications-resources/agreed-upon-procedures-engagements

ISRS 4400 is available on this link. http://www.ifac.org/system/files/downloads/b015-2010-iaasb-handbook-isrs-4400.pdf

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