The International Auditing and Assurance Standards Board (IAASB) released a Discussion Paper, Exploring the Demand for Agreed-Upon Procedures (AUP) Engagements and Other Services, and the Implications for the IAASB’s International Standards. The purposes of the Discussion Paper are to:
Highlight key features of AUP engagements;
Highlight the results of the research and outreach performed to date by the IAASB’s AUP Working Group; and
Obtain stakeholder input to help inform the development of a standard-setting project proposal to revise International Standard on Related Services (ISRS) 4400 and any other activities that may be necessary.
The Discussion Paper explores current demands for AUP engagements, the implications for standard-setting by the IAASB and, in particular, the extent to which users and practitioners find existing requirements and guidance helpful in undertaking an AUP engagement and producing an AUP report that is valued by users.
Possible modifications to ISRS 4400 identified by stakeholders in outreach include:
The role of professional judgement and professional scepticism in an AUP engagement;
The independence of the professional accountant;
Terminology in describing procedures and reporting factual findings in an AUP report;
AUP engagements on non-financial information;
Using the work of an expert;
Format of the AUP report;
AUP report restrictions; and
Recommendations made in conjunction with AUP engagements.
The Discussion Paper also explores demand and guidance for multi-scope engagements (i.e. engagements that combine reasonable assurance, limited assurance and non-assurance engagements) to meet emerging needs.
ISCA takes a leading role in advocating the views and proposals of the accounting and auditing community in Singapore. ISCA would like to seek views from key stakeholders in Singapore on the above.