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

Zeta & Co is engaged by Brava Ltd to perform an agreed-upon procedures engagement under ISRS 4400 (Revised) on the company's inventory records for a lender. Which statement best describes the form of the practitioner's report on such an engagement?

The practitioner issues a report of factual findings from the procedures performed, without any opinion or assurance conclusion. An agreed-upon procedures engagement under ISRS 4400 (Revised) is not an assurance engagement, so users draw their own conclusions from the findings reported.

  1. AA report of findings giving factual results of the procedures performed, with no opinion or conclusion expressing assuranceCorrect
  2. BA negative assurance conclusion stating that nothing has come to the practitioner's attention
  3. CA positive opinion on whether the inventory records are free from material misstatement
  4. DA report giving a conclusion on the sufficiency of the procedures for the lender's needs

Explanation

Under ISRS 4400 (Revised) an AUP engagement is not an assurance engagement. The practitioner reports factual findings from the procedures performed and expresses no opinion or conclusion. Negative assurance and positive opinions are used in review and audit engagements respectively.

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