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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit-related and assurance services

Halden & Partners performs an agreed-upon procedures engagement for Verity Bank on a borrower's covenant calculations. Which of the following is required in the practitioner's AUP report under ISRS 4400 (Revised)?

The report must set out the procedures performed and the factual findings from each one, including exceptions. It does not contain an opinion or an evidence-sufficiency statement, since an AUP engagement is not an assurance engagement.

  1. AA statement that the report is restricted so that no other party may ever read it
  2. BA description of the procedures performed in sufficient detail together with the factual findings of each procedureCorrect
  3. CAn opinion on whether the covenant calculations comply with the loan agreement
  4. DA statement that the practitioner has obtained sufficient appropriate evidence

Explanation

The AUP report must describe the procedures performed and the factual findings for each, including any exceptions. It must also state that the engagement is not an assurance engagement. No opinion is given, and 'sufficient appropriate evidence' language belongs to audits. Restriction of use is not mandatory under the revised standard, although a statement that the report is for the parties who agreed the procedures may be included.

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