Other Canadian Standards

Exposure Draft, Agreed-upon Procedures Engagements

Summary

The Auditing and Assurance Standards Board (AASB) proposes, subject to comments received following exposure, to adopt with appropriate amendments, proposed International Standard on Related Services (ISRS) 4400 (Revised), Agreed-Upon Procedures Engagements, issued by the International Auditing and Assurance Standards Board (IAASB). The result would be Canadian Standard on Related Services (CSRS) 4400, Agreed-upon Procedures Engagements, that would replace:

  • REPORTS ON THE RESULTS OF APPLYING SPECIFIED AUDITING PROCEDURES TO FINANCIAL INFORMATION OTHER THAN FINANCIAL STATEMENTS, Section 9100; and
  • AGREED-UPON PROCEDURES REGARDING INTERNAL CONTROL OVER FINANCIAL REPORTING, Section 9110.

Staff Contact(s)

Eric Turner, CPA, CA

Director, Auditing and Assurance Standards Board

Background

Section 9100 was developed over 25 years ago and Section 9110 was developed over 10 years ago. Since the development of these two Sections, there have been significant changes in the business environment such as increasing requests for agreed-upon procedures (AUP) engagements on non-financial subject matters beyond the scopes of Sections 9100 and 9110. Further, responses from Canadian stakeholders 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, suggest a need for a clarified and modernized AUP standard that:

  • addresses financial and non-financial subject matters;
  • clarifies the role of professional judgment in an AUP engagement;
  • clarifies what constitutes appropriate terminology for describing procedures and findings in an AUP report;
  • addresses the use of a practitioner’s expert in an AUP engagement; and
  • clarifies that the AUP report may be provided to a party that is not a signatory to the engagement agreement.