The practitioner shall have an understanding of the entire text of this ASRS, including its application and other explanatory material, to understand its objectives and to apply its requirements properly.

Complying with Relevant Requirements

The practitioner shall comply with each requirement of this ASRS unless a particular requirement is not relevant to the agreed-upon procedures engagement, for example, if the circumstances addressed by the requirement do not exist in the engagement.

The practitioner shall not represent compliance with this ASRS unless the practitioner has complied with all requirements of this ASRS relevant to the agreed-upon procedures engagement.

The practitioner shall comply with relevant ethical requirements. (Ref: Para. A14–A20)

The practitioner shall exercise professional judgement in accepting, conducting and reporting on an agreed-upon procedures engagement, taking into account the circumstances of the engagement. (Ref: Para. A21–A23)

The engagement partner shall take overall responsibility for:

1. Managing and achieving quality on the agreed-upon procedures engagement including, if applicable, work performed by a practitioner’s expert, and being sufficiently and appropriately involved throughout the engagement; and (Ref: Para. A24)
2. The engagement being performed in accordance with the firm’s quality management policies or procedures by:
   1. Following the firm's policies or procedures regarding the acceptance and continuance of client relationships and agreed-upon procedures engagements; (Ref: Para. A25)
   2. Determining that sufficient and appropriate resources to perform the engagement are assigned or made available to the engagement team in a timely manner, taking into account the nature and circumstances of the engagement, the firm’s policies or procedures, and any changes that may arise during the engagement;
   3. Being satisfied that the engagement team, and any practitioner's experts who are not part of the engagement team, collectively have the appropriate competence and capabilities, including having sufficient time, to perform the agreed-upon procedures engagement;
   4. Being alert for indications of breaches of relevant ethical requirements by members of the engagement team, and determining the appropriate actions if matters come to the engagement partner’s attention indicating that members of the engagement team have breached relevant ethical requirements; (Ref: Para. A26)
   5. Directing and supervising engagement team members, reviewing their work, and performing the engagement in compliance with professional standards and applicable legal and regulatory requirements; and
   6. Taking responsibility for appropriate engagement documentation being assembled, appropriately maintained and retained.
   7. When an engagement quality review is required in accordance with ASQM 1 or the firm’s policies or procedures, not dating the report until the completion of the engagement quality review.^[3]

If the work of a practitioner’s expert is to be used, the engagement partner shall be satisfied that the practitioner will be able to be involved in the work of a practitioner’s expert to an extent that is sufficient to take responsibility for the findings included in the agreed-upon procedures report. (Ref: Para. A27)

Before accepting or continuing an agreed-upon procedures engagement, the practitioner shall obtain an understanding of the purpose of the engagement. The practitioner shall not accept or continue the agreed-upon procedures engagement if the practitioner is aware of any facts or circumstances indicating that the procedures the practitioner is being asked to perform are inappropriate for the purpose of the agreed-upon procedures engagement. (Ref: Para. A28–A31)

The practitioner shall accept or continue the agreed-upon procedures engagement only when: (Ref: Para. A28–A31)

1. The engaging party acknowledges that the expected procedures to be performed by the practitioner are appropriate for the purpose of the engagement;
2. The practitioner expects to be able to obtain the information necessary to perform the agreed-upon procedures;
3. The agreed-upon procedures and related findings can be described objectively, in terms that are clear, not misleading, and not subject to varying interpretations; (Ref: Para. A32–A36);
4. The practitioner has no reason to believe that relevant ethical requirements will not be complied with;
5. If the practitioner is required to comply with independence requirements, the practitioner has no reason to believe that the independence requirements will not be complied with; and (Ref: Para. A37–A38)

Aus 22(f) - The use of the agreed-upon procedures report can be restricted to those intended users to be identified in the agreed-upon procedures report.

If the engagement partner obtains information that may have caused the firm to decline the engagement had that information been known by the firm prior to accepting or continuing the engagement, the engagement partner shall communicate that information promptly to the firm, so that the firm and the engagement partner can take necessary action.

The practitioner shall agree the terms of the agreed-upon procedures engagement with the engaging party and record the agreed terms of engagement in an engagement letter or other suitable form of written agreement. These terms shall include the following: (Ref: Para. A39–A40)

1. Identification of the subject matter(s) on which the agreed-upon procedures will be performed;
2. The purpose of the engagement and the intended users of the agreed-upon procedures report as identified by the engaging party;
3. If applicable, the responsible party as identified by the engaging party, and a statement that the agreed-upon procedures engagement is performed on the basis that the responsible party is responsible for the subject matter on which the agreed-upon procedures are performed;
4. Acknowledgement of the relevant ethical requirements with which the practitioner will comply in conducting the agreed-upon procedures engagement;
5. A statement as to whether the practitioner is required to comply with independence requirements and, if so, the relevant independence requirements; (Ref: Para. A37–A38)
6. The nature of the agreed-upon procedures engagement, including statements that:
   1. An agreed-upon procedures engagement involves the practitioner performing the procedures agreed with the engaging party (and if relevant, other parties), and reporting the findings; (Ref: Para. A10)
   2. Findings are the factual results of the agreed-upon procedures performed; and
   3. An agreed-upon procedures engagement is not an assurance engagement and accordingly, the practitioner does not express an opinion or an assurance conclusion;
7. Acknowledgement by the engaging party (and if relevant, other parties) that the agreed-upon procedures are appropriate for the purpose of the engagement; (Ref: Para. A10)
8. Identification of the addressee of the agreed-upon procedures report;
9. The nature, timing and extent of the procedures to be performed, described in terms that are clear, not misleading and not subject to varying interpretations; (Ref: Para. A41– A42)
10. Reference to the expected form and content of the agreed-upon procedures report; and

Aus 24(k) - A statement that the use of the agreed-upon procedures report will be restricted to those intended users to be identified in the agreed-upon procedures report.

If the agreed-upon procedures are modified during the course of the engagement, the practitioner shall agree amended terms of engagement with the engaging party that reflect the modified procedures. (Ref: Para. A43)

Recurring Agreed-Upon Procedures Engagements

On recurring agreed-upon procedures engagements, the practitioner shall evaluate whether circumstances, including changes in the firm’s judgements about whether to accept or continue the engagement, require the terms of the engagement to be revised and whether there is a need to remind the engaging party of the existing terms of engagement. (Ref: Para. A44)

The practitioner shall perform the procedures as agreed upon in the terms of the engagement.

The practitioner shall consider whether to request written representations. (Ref: Para. A45)

If the practitioner uses the work of a practitioner’s expert, the practitioner shall: (Ref: Para. A46– A47, A50)

1. Evaluate the competence, capabilities and objectivity of the practitioner’s expert;
2. Agree with the practitioner’s expert on the nature, scope and objectives of that expert’s work; (Ref: Para. A48–A49)
3. Determine whether the nature, timing and extent of the work performed by the practitioner’s expert is consistent with the work agreed with the expert; and
4. Determine whether the findings adequately describe the results of the work performed, taking into account the work performed by the practitioner’s expert.

The agreed-upon procedures report shall be in writing and shall include: (Ref: Para. A51)

1. A title that clearly indicates that the report is an agreed-upon procedures report;
2. An addressee as set forth in the terms of the engagement;
3. Identification of the subject matter on which the agreed-upon procedures are performed; (Ref: Para. A52)
4. Identification of the purpose of the agreed-upon procedures report and a statement that the agreed-upon procedures report may not be suitable for another purpose; (Ref: Para. A53–A54)
5. A description of an agreed-upon procedures engagement stating that:
   1. An agreed-upon procedures engagement involves the practitioner performing the procedures that have been agreed with the engaging party (and if relevant, other parties), and reporting the findings; (Ref: Para. A10)
   2. Findings are the factual results of the agreed-upon procedures performed; and
   3. The engaging party (and if relevant, other parties) has acknowledged that the agreed-upon procedures are appropriate for the purpose of the engagement. (Ref: Para. A10)
6. If applicable, the responsible party as identified by the engaging party, and a statement that the responsible party is responsible for the subject matter on which the agreed-upon procedures are performed;
7. A statement that the engagement was performed in accordance with ASRS 4400;
8. A statement that the practitioner makes no representation regarding the appropriateness of the agreed-upon procedures;
9. A statement that the agreed-upon procedures engagement is not an assurance engagement and accordingly, the practitioner does not express an opinion or an assurance conclusion;
10. A statement that, had the practitioner performed additional procedures, other matters might have come to the practitioner’s attention that would have been reported;
11. [Deleted by the AUASB. Refer Aus 30(k)]
12. Aus 30(k) - A statement that the practitioner complies with the ethical requirements , including the fundamental principle of objectivity, of the APESB Code, or other professional requirements, or requirements imposed by law or regulation, that are at least as demanding.
12. With respect to independence:
    1. If the practitioner is not required to be independent and has not otherwise agreed in the terms of engagement to comply with independence requirements, a statement that, for the purpose of the engagement, there are no independence requirements with which the practitioner is required to comply; or
    2. If the practitioner is required to be independent or has agreed in the terms of engagement to comply with independence requirements, a statement that the practitioner has complied with the relevant independence requirements. The statement shall identify the relevant independence requirements;
13. A statement that the firm of which the practitioner is a member applies ASQM 1, or other professional requirements, or requirements in law or regulation, that are at least as demanding as ASQM 1. If the practitioner is not a professional accountant, the statement shall identify the professional requirements, or requirements in law or regulation, applied that are at least as demanding as ASQM 1;
14. A description of the procedures performed detailing the nature and extent, and if applicable, the timing, of each procedure as agreed in the terms of the engagement; (Ref: Para. A55–A57)
15. The findings from each procedure performed, including details on exceptions found; (Ref: Para. A55–A56)
16. The practitioner’s signature;
17. The date of the agreed-upon procedures report;
18. The location in the jurisdiction where the practitioner practices; and

Aus 30(s) - A statement that the use of the agreed-upon procedures report will be restricted to those intended users to be identified in the agreed-upon procedures report.

If the practitioner refers to the work performed by a practitioner’s expert in the agreed-upon procedures report, the wording of the report shall not imply that the practitioner’s responsibility for performing the procedures and reporting the findings is reduced because of the involvement of an expert. (Ref: Para. A58)

If the practitioner provides a summary of findings in the agreed-upon procedures report in addition to the description of findings as required by paragraph 30(o):

1. The summary of findings shall be described in a manner that is objective, in terms that are clear, not misleading, and not subject to varying interpretations; and
2. The agreed-upon procedures report shall include a statement indicating that reading the summary is not a substitute for reading the complete report.

The practitioner shall date the agreed-upon procedures report no earlier than the date on which the practitioner completed the agreed-upon procedures and determined the findings in accordance with this ASRS.

The agreed-upon procedures report shall be clearly distinguished from reports on other engagements. (Ref: Para. A59)

The practitioner shall include in the engagement documentation: (Ref: Para. A60)

1. The written terms of engagement and, if applicable, the agreement of the engaging party as to modifications to the procedures;
2. The nature, timing and extent of the agreed-upon procedures performed; and
3. The findings resulting from the agreed-upon procedures performed.