Reminder: The new AUP standard is now effective!

24 January 2022
Accounting
South African Accounting Academy

1 January 2022 marked the effective date of the standard on agreed-upon procedures (AUP), which was issued in August 2020.

For engagements covering multiple years, practitioners may wish to update the terms of engagement so that the AUP engagements will be conducted in accordance with the revised standard.

The revised requirements and application material promote consistency in the performance of agreed-upon procedures engagements, and include enhancement relating to, among other matters, the exercise of professional judgement, compliance with independence requirements, engagement acceptance and continuance considerations, using the work of a practitioner’s expert, and greater clarity and transparency in the agreed-upon procedures report.

Click here to download the Revised Standard:

https://www.iaasb.org/publications/international-standard-related-services-isrs-4400-revised

How does this affect you and your clients?

Relevance to Auditors, Independent Reviewers & Accountants:

Professional accountants, auditors and independent reviewers must adhere to relevant International Standards whilst performing their duties, otherwise they may be found to be negligent (and hence incur liability).
Practically, the revised standard contains enhancements that must be evident in your working paper file for AUP engagements on or after 1 January 2022.

Relevance to Your clients:

Your clients must have proper knowledge of the terms of the agreed-upon procedures, and this should be set out in your engagement letter with them.

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