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

Zeta & Co has been engaged by Brightwater Ltd to perform an agreed-upon procedures engagement under ISRS 4400 (Revised) on the company's trade receivables listing. Which of the following best describes the form of the practitioner's report on such an engagement?

An agreed-upon procedures report sets out only the factual findings from the procedures performed. The practitioner expresses no assurance, opinion or conclusion, because users draw their own conclusions from the findings. Negative assurance belongs to review engagements, and an opinion belongs to audits.

  1. AA report of factual findings only, with no assurance expressed and no conclusion on the subject matterCorrect
  2. BA negative assurance conclusion that nothing has come to attention indicating the receivables are misstated
  3. CA positive opinion that the receivables listing is fairly stated in all material respects
  4. DA report of factual findings that also includes recommendations on how to improve credit control

Explanation

In an agreed-upon procedures engagement the practitioner reports the factual findings from the procedures performed. No assurance is provided, so neither an opinion nor a negative assurance conclusion is given. Recommendations are not part of the report on findings, and a negative assurance statement would wrongly imply a review-level engagement.

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