Scope of this ASRS
This ASRS deals with:
- The practitioner’s responsibilities when engaged to perform an agreed-upon procedures engagement; and
- The form and content of the agreed-upon procedures report.
Quality control systems, policies and procedures are the responsibility of the firm. ASQC 1 applies to firms of assurance practitioners in respect of a firm’s agreed-upon procedures engagements. The provisions of this ASRS regarding quality control at the level of individual agreed-upon procedures engagements are premised on the basis that the firm is subject to ASQC 1 or requirements that are at least as demanding. (Ref: Para. A3–A8)
The Agreed-Upon Procedures Engagement
In an agreed-upon procedures engagement, the practitioner performs the procedures that have been agreed upon by the practitioner and the engaging party, where the engaging party has acknowledged that the procedures performed are appropriate for the purpose of the engagement. The practitioner communicates the agreed-upon procedures performed and the related findings in the agreed-upon procedures report. The engaging party and other intended users consider for themselves the agreed-upon procedures and findings reported by the practitioner and draw their own conclusions from the work performed by the practitioner.
The value of an agreed-upon procedures engagement performed in accordance with this ASRS results from:
- The practitioner’s compliance with professional standards, including relevant ethical requirements; and
- Clear communication of the procedures performed and the related findings.
An agreed-upon procedures engagement is not an audit, review or other assurance engagement. An agreed-upon procedures engagement does not involve obtaining evidence for the purpose of the practitioner expressing an opinion or an assurance conclusion in any form. [Aus] Appendix 3 provides a table of Differentiating Factors between Agreed-Upon Procedures Engagements and Assurance Engagements.
Authority of this ASRS
This ASRS contains the objectives of the practitioner in following the ASRS, which provide the context in which the requirements of this ASRS are set. The objectives are intended to assist the practitioner in understanding what needs to be accomplished in an agreed-upon procedures engagement.
This ASRS contains requirements, expressed using “shall”, that are designed to enable the practitioner to meet the stated objectives.
In addition, this ASRS contains introductory material, definitions, and application and other explanatory material, that provide context relevant to a proper understanding of this ASRS.
The application and other explanatory material provides further explanation of the requirements and guidance for carrying them out. While such guidance does not in itself impose a requirement, it is relevant to the proper application of the requirements. The application and other explanatory material may also provide background information on matters addressed in this ASRS that assists in the application of the requirements.
Australian Standard on Quality Control ASQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Reports, and Other Assurance Engagements and Related Services Engagements.