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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Specific assignments

Harlow & Co, a firm of accountants, is engaged by Brindle Ltd to carry out agreed-upon procedures on the company's inventory records. The firm will report only the factual findings from the procedures performed. Which statement best describes the level of assurance given under ISRS 4400 (Revised)?

An agreed-upon procedures engagement under ISRS 4400 (Revised) provides no assurance. The practitioner simply reports the factual findings from the procedures performed and expresses no opinion or conclusion, so users draw their own conclusions from the findings.

  1. AReasonable assurance on the inventory records
  2. BLimited assurance on the inventory records
  3. CNo assurance is expressed; the report gives only factual findingsCorrect
  4. DNegative assurance on the fairness of the financial statements

Explanation

Under ISRS 4400 (Revised), an agreed-upon procedures engagement is not an assurance engagement. The practitioner reports factual findings and expresses no opinion or conclusion. Limited assurance applies to reviews, so option B is wrong.

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