The International Auditing and Assurance Standards Board (IAASB)’s Agreed-Upon Procedures (AUP) Working Group has released its Discussion Paper, Exploring the Demand for Agreed-Upon Procedures Engagement and Other Services, and the Implications for the IAASB’s International Standards.
“The demand for AUP engagements is growing as the business and regulatory environment evolves. The need for credible information also drives the need for alternative services by practitioners that are not audits or assurance engagements,” said IAASB Chairman Prof. Arnold Schilder. “Working to ensure that the IAASB’s International Standards are capable of being applied in these evolving circumstances continues to be highly important.”
“The IAASB’s standard addressing AUP engagements was developed over 20 years ago and continues to be widely used in many jurisdictions, in particular, by small- and medium-sized practitioners,” said Ron Salole, Chair of the AUP Working Group. “In addition to modernizing and enhancing the IAASB’s AUP standard, establishing a deeper understanding of the needs of those who use AUP reports will help the IAASB determine necessary changes to keep its International Standards relevant in a continually evolving environment.”
The Discussion Paper sets out the key features of an AUP engagement and explores how AUP engagements are undertaken, including the extent to which practitioners find existing requirements and guidance helpful or challenging. In addition, the IAASB is seeking an understanding of how reports on factual findings are used to determine the needs of users of these reports. The Discussion Paper also explores the demand for engagements that combine reasonable assurance, limited assurance, and non-assurance engagements, and whether the IAASB’s existing International Standards are appropriate.
The Working Group seeks input from investors, preparers, those in governance roles, standard setters, practitioners, internal auditors, regulators, academics, and other stakeholders. The input will assist the IAASB in determining what is needed to meet stakeholder’s needs, including standard setting and other possible actions. Comments on the Discussion Paper are requested by March 29, 2017.
More information and updates on the project are available on the IAASB’s project page.
About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).