Agreed-Upon Procedures (Amendments to Section 9100) [Completed]
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Effective date: |
CSRS 4400 is effective for agreed-upon procedures engagements for which the terms of engagement are agreed to on or after January 1, 2022. |
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Last updated: |
August 2020 |
Overview
The objective of this project was to update Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements, which was written several years ago.
The project addressed
- whether an umbrella standard is needed for agreed-upon procedures engagements;
- whether the concept that an agreed-upon procedures engagement does not result in the provision of assurance is still appropriate;
- whether a practitioner should be required to use professional judgment when determining or modifying the procedures to be performed;
- whether the practitioner should apply materiality to design procedures or assess factual findings; and
- the form and content of the practitioner’s report.
Importantly with respect to the direction of this project, at its meeting on October 16-18, 2017, the AASB unanimously approved a project proposal to consider adopting (if appropriate) the revised ISRS 4400, Engagements to Perform Agreed‐Upon Procedures Regarding Financial Information, for use in Canada. When adopted, CSRS 4400 will replace existing standard Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements.
On November 30, 2018, the AASB issued an Exposure Draft of a proposed new standard proposing to adopt, with Canadian amendments, ISRS 4400 (Revised). Comments were requested by February 15, 2019.
At its meeting on March 9-10, 2020, the AASB unanimously approved CSRS 4400, including the related conforming amendments to other standards. CSRS 4400 will replace Section 9100 and Section 9110. CSRS 4400 will be effective for agreed-upon procedures engagements for which the terms of engagement are agreed to on or after January 1, 2022.
On August 1, 2020, the new standard CSRS 4400, Agreed-Upon Procedures Engagements, was issued to the CPA Canada Handbook – Assurance. CSRS 4400 sets out requirements relating to: (i) engagement acceptance and continuance; (ii) agreeing the terms of the engagement; (iii) performing the agreed-upon procedures; (iv) using the work of a practitioner's expert; (v) the agreed-upon procedures report; (vi) undertaking an agreed-upon procedures engagement together with another engagement; and (vii) documentation. It 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.
Other developments
August 2020
On August 1, 2020, the new standard CSRS 4400 was issued to the CPA Canada Handbook – Assurance.
July 2020
On July 31, 2020, the AASB released the Basis for Conclusions that summarizes the process the AASB followed in issuing CSRS 4400, "Agreed-Upon Procedures Engagements", and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.
April 2020
On April 3, 2020, the IAASB released International Standard on Related Services (ISRS) 4400 (Revised), its revised standard for performing agreed-upon procedures engagements.
November 2018
On November 30, 2018, the AASB issued an Exposure Draft of a proposed new standard proposing to adopt, with Canadian amendments, ISRS 4400 (Revised). Read and respond to the Exposure Draft by February 15, 2019.
On November 15, 2018, the IAASB issued for public comment an Exposure Draft of proposed ISRS 4400 (Revised), Agreed-Upon Procedures Engagements. Comments are requested by March 15, 2019.
July 2018
In July, 2018, the staff of the AASB updated the information in respect of this project to advise that the AASB expects to approve an Exposure Draft in the first half of 2019.
June 2018
In June 2018, the AASB staff updated this project to indicate that the AASB expects to issue an exposure draft in Q2/2019.
December 2016
On December 20, 2016, the AASB issued an Invitation to Comment on the IAASB’s Discussion Paper, which explores agreed-upon procedures engagements performed either as a stand-alone engagement or in combination with other engagements. Comments to the AASB must be received by February 10, 2017.
November 2016
On November 29, 2016, the IAASB issued a Discussion Paper exploring how agreed-upon procedures engagements are undertaken and reports are used. It also explores the demand for engagements that combine reasonable, limited and no assurance. Canadian stakeholders are encouraged to respond to the IAASB by March 29, 2017.
October 2016
In October 2016, the AASB staff updated this project to advise that the AASB expects to issue an Invitation to Comment in Q1/2017.
July 2016
In July 2016, the staff updated this project to indicate that the AASB now expects to issue an Invitation to Comment in Q4/2016.
March 2016
In March 2016, the AASB staff updated this project to advise that the AASB expects to issue an Invitation to Comment in Q3/2016.
February 2016
In February 2016, the AASB staff updated this project to advise that the AASB expects to issue an Invitation to Comment in Q4/2016.