Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards

Agreed-upon procedures (AUP) engagements are widely undertaken in many jurisdictions and frequently used by regulators, funding bodies, not-for-profit organizations, creditors, and other users.

In 2015, the International Auditing and Assurance Standards Board (IAASB) formed a Working Group to help the board understand AUP engagements use, national developments in relation to standards addressing AUP engagements, and broader market needs. This information will support any possible revisions of International Standard on Related Services (ISRS) 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information, which was developed over 20 years ago (for additional background, see our previous article on some of the issues the Working Group planned to explore).

The Working Group issued a Discussion Paper last November, Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards. The paper:

• highlights the key features of AUP engagements performed in accordance with ISRS 4400;
• highlights the results of research and outreach by the Working Group; and
• seeks stakeholder views on the issues to help inform the development of a standard-setting project proposal to revise ISRS 4400 and any other activities that may be necessary.

Specifically, the paper explores:

• current demands for AUP engagements, implications for IAASB standard setting, 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; and
• the demand for engagements that combine reasonable assurance engagements, limited assurance engagements, and non-assurance engagements, such as AUP engagements, to meet emerging needs.

The IAASB and the Working Group would like input from investors, preparers, those in governance roles, standard setters, practitioners, internal auditors, regulators, academics, and other stakeholders. This input will help determine what is needed to meet stakeholder’s needs, including standard setting and other possible actions.