What requirements exist for an agreed-upon procedures engagement?

What requirements exist for an agreed-upon procedures engagement?

What requirements exist for an agreed-upon procedures engagement?

A statement that the engaging party agrees to provide the practitioner, prior to the completion of the engagement, with a written agreement and acknowledgment that the procedures performed are appropriate for the intended purpose of the engagement.

Is independence required for a compilation?

While independence is required at the other levels of service, the CPA does not have to be independent of your organization to perform a compilation. The report must state that the accountant is not independent. Further options lie within the compilation level of service.

Are agreed-upon procedures restricted?

The auditor's report on the findings is usually restricted to those parties who developed the agreed-upon procedures because of the specificity of the desired results. For example, agreed-upon procedures may be developed by one entity that is considering purchasing another business.

What are agreed-upon procedures objectives?

​The objective of an agreed-upon procedures engagement is for the auditor to carry out procedures of an audit nature to which the auditor and the client and any appropriate third parties have agreed and to report on factual findings.

What is agreed upon procedure engagement?

An agreed-upon procedures engagement is a service in which a CPA is to report findings based on specific procedures agreed upon beforehand. The procedures are agreed upon in advance and can encompass a wide variety of topics, which we like to refer to as “subject matter”.

What assurance is provided by the auditor in an agreed upon procedures engagement?

An agreed-upon procedures engagement involves the performance of procedures of an assurance nature from which no conclusion or opinion is expressed by the member, and no assurance is provided to intended users. Instead only factual findings obtained as a result of the procedures performed are reported.

Can a CPA who is not independent issue a compilation report?

An accountant can issue a compilation report even though independence is lacking. When independence is impaired, SSARS 21 requires that the CPA modify the compilation report. ... You can–if you prefer–simply say you are not independent; this is what most CPAs do.

What is required in a compilation engagement?

When performing compilation, the accountant should prepare adequate documentation that provides information on the work that has been carried out. Some of the documentation includes the engagement letter, financial statements, and communication with management regarding significant issues identified during the audit.

Is AUP an assurance engagement?

Agreed-Upon Procedures (AUP) Engagements: the practitioner provides a report based on factual findings regarding financial information—no assurance is expressed. The report is not distributed publicly—it is restricted to those parties that have agreed to the procedures.

What is the difference between an audit and agreed upon procedures?

Unlike an audit, auditors do not give an opinion on subject matters in the agreed-upon procedures. Auditors only report of findings based on the agreed procedures performed on the subject matter. ... In the agreed-upon procedures, auditors do not perform an examination or a review like in an audit or a review engagement.

Do you have to comply with agreed-upon procedures?

  • Contrary to popular belief, there is no requirement that an engagement to perform procedures and report findings must be conducted in compliance with either agreed-upon services or consulting engagement standards.

What happens during an agreed upon procedure engagement?

  • During an agreed-upon procedures engagement a qualified accountant will discuss with you and agree a set of procedures to perform that are based on your requirements.

What are the agreed upon procedures in AICPA?

  • Agreed-upon procedures engagements are governed by the AICPA’s Statements on Standards for Attestation Engagements (SSAE), most recently by SSAE 18, Attestation Standards: Clarification and Recodification (effective ), principally as AT-C section 215, “Agreed-Upon Procedures Engagements.”

What are the ethical principles of agreed upon procedures?

  • The ethical principles that apply to agreed-upon procedures engagements are the professional responsibilities for integrity, objectivity, professional competence and due care, confidentiality, professional behaviour and technical standards. Independence is however not a requirement for agreed-upon procedures engagements.

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