Agreed Upon Procedure Engagements

Question 1

What are agreed upon procedures?

Answer 1

Attestation engagement on subject matter or assertion without providing an opinion or conclusion.

Question 2

What needs to be included in the engagement letter?

Answer 2

1) Nature of engagement
2) identification of the subject matter or assertion
3) identification of the specified parties
4) Acknowledgment by the specified parties of their responsibilities for the sufficiency of the agreed upon procedure
5) Responsibilities of the practitioner
6) Statement that the engagement will be conducted according to AICPA attestation standards
7) Enumeration of the procedures to be performed
8) Disclaimers expected to be in the report
9) Restricted use of the practitioners report
10) Identification of any assistance to be provided
11) identification of practitioners external specialists
12) Agreement about materiality limited to be applied, if applicable

Question 3

T/F: The responsible party should provide a written assertion about the subject matter?

Answer 3

TRUE

Question 4

T/F: Internal auditors are allowed to perform the agreed-upon procedures?

Answer 4

FALSE

Question 5

What should be the date of the written representation?

Answer 5

The date of the practitioners report

Question 6

T/F: There is a standardized report for agreed-upon procedure?

Answer 6

FALSE

Question 7

What needs to be included in the agreed upon in the report?

Answer 7

• Title that includes “independent”
• Appropriate address
• Subject matter
• Parties specified
• Responsible party for assertion
• Specified users are responsible for sufficiency
• List of procedures performed and findings
• Description of materiality limits
• Reference AICPA standards and disclaimer of opinion
• Any assistance from external specialist?
• Reservations concerning procedures?
• Restrict the use of the report to specified parties
• Signature of firm
• City state
• Date