Agreed-upon Procedures

Current Status Next Steps

AASB is deliberating comments received on its Invitation to Comment.

To be determined.

OBJECTIVE AND SCOPE OF THIS PROJECT

The objective of this project is to update Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements, which was written several years ago.

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The project will address:

  • whether an umbrella standard is needed for agreed-upon procedures engagements;
  • whether the concept that an agreed-upon procedures engagement does not result in the provision of assurance is still appropriate;
  • whether a practitioner should be required to use professional judgment when determining or modifying the procedures to be performed;
  • whether the practitioner should apply materiality to design procedures or assess factual findings; and
  • the form and content of the practitioner’s report.

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PROJECT NEWS & DECISION SUMMARIES

AASB Decision Summary – March 6-7, 2017
The AASB reviewed a draft response to the IAASB’s Discussion Paper, “Exploring the Demand for Agreedā€Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards.”  In the response, the AASB highlighted its perspective regarding:

  • the role of professional judgment in an agreed-upon procedures engagement;
  • considerations related to the independence of the professional accountant;
  • how to restrict the distribution of the agreed-upon procedures report; and
  • whether there is a need to address multi-scope engagements as part of this project.

The AASB’s response will be submitted by March 29, 2017.

AASB Invitation to Comment – Exploring the Demand for Agreed-upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards
December 20, 2016. The AASB has issued an Invitation to Comment on the IAASB’s Discussion Paper, which explores agreed-upon procedures engagements performed either as a stand-alone engagement or in combination with other engagements. Stakeholders are encouraged to submit their comments by February 10, 2017.

IAASB Discussion Paper – Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards
December 6, 2016 – The IAASB has issued a Discussion Paper exploring how agreed-upon procedures engagements are undertaken and reports are used. It also explores the demand for engagements that combine reasonable, limited and no assurance. Canadian stakeholders are encouraged to respond to the IAASB by March 29, 2017.

Roundtable Discussions – Stakeholders’ Views Sought on the Agreed-upon Procedures Working Group Discussion Paper
November 25, 2016. Register to attend a roundtable to provide your views directly to the IAASB Working Group as the IAASB looks to revise its agreed-upon procedures standard. Discussions are taking place in cities across the country. Seating is limited, so register today!

AASB Decision Summary – October 17-18, 2016
The AASB unanimously approved a Canadian Invitation to Comment on the IAASB’s discussion paper, “Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards.”  The Invitation to Comment is expected to be issued in late 2016.

AASB Decision Summary – September 12-13, 2016 
The AASB discussed issues related to the IAASB’s project on revisions to ISRS 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information. The AASB reviewed the IAASB Working Group’s draft discussion paper, “Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services.” The AASB discussed the approach to be followed in Canada for this project, including possible outreach activities.  The AASB will continue to monitor this project as it evolves before deciding whether an advisory group may be required.

AASB Decision Summary – June 13-14, 2016
The AASB reviewed issues discussed by a group of AASB members and staff with the IAASB’s Agreed-Upon Procedures Working Group in May 2016. The AASB also provided input to the CPA Canada nominee on the IAASB regarding issues related to the IAASB’s project to revise ISRS 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information, including:

  • key features and benefits of agreed-upon procedures engagements;
  • issues raised in the IAASB discussion paper; and
  • other activities that the project may consider.

AASB Decision Summary – March 7- 8, 2016
The AASB provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project to revise ISRS 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information, including:

  • the need for further exploration of multi-scope engagements; and
  • the use of judgment in an agreed-upon procedures engagement.

AASB Decision Summary – June 8-9, 2015
The AASB provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project to revise ISRS 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information. The AASB agreed that the IAASB’s project appears to be addressing issues that are relevant in a Canadian context.

AASB Decision Summary – January 20-21, 2014
The AASB approved a project proposal to revise and clarify Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.