ISCA Issues SSRS 4400 (Revised) Agreed-Upon Procedures Engagements

SSRS 4400 (Revised) deals with the practitioner’s responsibilities when engaged to perform an agreed-upon procedures (AUP) engagement, and the form and content of the agreed-upon procedures report. The revised standard is based on the International Standard on Related Services (ISRS) 4400 (Revised) issued by the International Auditing and Assurance Standards Board (IAASB).

The key revisions made to the extant SSRS 4400 include:

Scope and Responsibilities

• Broadening the scope of the revised standard to cover AUP engagements on both financial and non-financial subject matters and including new requirements and application material to clarify the practitioner’s responsibilities in relation to the various parties involved in an AUP engagement.

Reducing inconsistency in the performance of AUP engagements

• New requirement for practitioner to exercise professional judgement throughout the engagement, including:
  • In accepting the engagement, discussing and agreeing with the engaging party the nature, timing and extent of the procedures to be performed (taking into account the purpose of the engagement);
  • In conducting the engagement, determining appropriate actions/responses if the auditor becomes aware that procedures cannot be performed as agreed; and
  • In reporting on the engagement, describing the findings in an objective manner and in sufficient detail.

• New requirements in relation to engagement acceptance and continuance considerations, including only accepting or continuing the engagement when certain conditions are met.

Providing clarity in the AUP report by enhancing the report for clearer, more consistent language and enhancing transparency

• Requirements on the use of terminology that is clear, not misleading and not subject to varying interpretations.

• Enhancements to the AUP report, including increased transparency on:
  • The responsibilities of the various parties involved in an AUP engagement; and
  • Whether or not the practitioner is required to comply with independence requirements, and if so, the relevant independence requirements.

• In contrast with the extant standard, SSRS 4400 (Revised) does not require the practitioner to include a statement that the report is restricted to those parties that have agreed to the procedures performed. Such a restriction is now based on the discretion of the practitioner. Application material has been added to guide the practitioner in deciding whether to restrict the use or distribution of the AUP report.

• New reporting requirements and application material to address circumstances when a summary of findings is provided in an AUP report and when the practitioner is undertaking an AUP engagement together with another engagement.

Using the Work of a Practitioner’s Expert

• New requirements and application material to provide guidance on how a practitioner’s expert can assist the practitioner in an AUP engagement. 

Click here for SSRS 4400 (Revised).

Effective Date

The revised standard is effective for agreed-upon procedures engagements for which the terms of engagement are agreed on or after 1 January 2022.