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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Reporting on other assignments

Zenith & Co, a firm of accountants, is engaged by Karlo Ltd to perform an agreed-upon procedures engagement under ISRS 4400 (Revised) on the company's trade receivables ledger. The procedures were specified by Karlo Ltd and its bank. Which of the following best describes the form of the practitioner's report on this engagement?

The practitioner reports only the factual findings from the agreed procedures and gives no assurance. Users evaluate the findings and draw their own conclusions. Positive, negative or reasonable assurance opinions arise in audits and reviews, not in agreed-upon procedures engagements under ISRS 4400 (Revised).

  1. AA report of factual findings only, with no assurance expressedCorrect
  2. BA positive assurance opinion on the receivables balance
  3. CA negative assurance conclusion that nothing has come to attention
  4. DA reasonable assurance opinion on whether receivables are fairly stated

Explanation

Under ISRS 4400 (Revised), the practitioner performs agreed procedures and reports the factual findings. No assurance is expressed, so the users draw their own conclusions. Negative and positive assurance conclusions belong to review and audit engagements, not to AUP.

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