The most significant distinction between consulting services and agreed-upon procedures is that an agreed-upon procedures engagement, as an attest service, results in a written report that is typically intended to add credibility to an assertion of the responsible party, usually management, to benefit a third-party …
Are agreed upon procedures an attest engagement?
An agreed-upon procedures attest engagement is one in which a practitioner is engaged to issue a report of findings based on specific procedures performed on subject matter.
What are considered attest services?
What Is an Attestation Service? An attest service, or attestation service, is an independent review of a company’s financial statement conducted by a certified public accountant (CPA). The CPA delivers an attestation report with conclusions about the reliability of the data.
Are agreed upon procedures assurance services?
Agreed-Upon Procedures (AUP) Engagements: the practitioner provides a report based on factual findings regarding financial information—no assurance is expressed. The report is not distributed publicly—it is restricted to those parties that have agreed to the procedures.
Is an AUP a non audit service?
An agreed upon procedures (AUP) engagement uses procedures similar to an audit, but on a smaller and limited scale. Here’s how a customized AUP engagement differs from an audit and can be used to identify specific problems that require immediate action.
Which of the following professional services would be considered an attestation engagement?
The audit of financial statements is the most common attestation service, but there are several others like agree-upon procedures engagements, review, and examination engagements.
What is an agreed-upon procedures engagement?
A statement that an agreed-upon procedures engagement involves the practitioner performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed. k.
What are the 3 types of attestation services?
Conclusion. Audits, reviews and compilations are three very different levels of attestation services available for financial statements, and the information provided above will help you understand the differences and determine which one is appropriate for your business.
What are the four categories of attestation services?
The four categories of attestation services are audits of historical financial statements, attestation on the effectiveness of internal control over financial reporting, reviews of historical financial statements, and other attestation services.
What are attest and Nonattest services?
Nonattest services. Nonattest services are services provided to a client that are not specifically related to the performance of an attest engagement. For example, nonattest services include activities such as financial statement preparation, cash to accrual conversions, reconciliations, and tax return preparation.
Are agreed-upon procedures subject to peer review?
An AUP is an attest engagement, so CPAs must be independent to perform them. And AUPs are subject to peer review, so if your firm isn’t otherwise subject to peer review, the performance of an AUP engagement would subject the firm to an engagement review.
Is compilation an assurance engagement?
02 Because a compilation engagement is not an assurance engagement, a compilation engagement does not require the accountant to verify the accu- racy or completeness of the information provided by management or otherwise gather evidence to express an opinion or a conclusion on the financial state- ments. .
Is due diligence an assurance engagement?
Due diligence is primarily an assurance engagement and the reporting accountant will be required to have an understanding of both accounting and auditing standards.
Can a non CPA perform agreed upon procedures?
An agreed-upon procedures engagement cannot be performed because the CPA is not independent, or because there is no assertion of a responsible party.
What is meant by doing audit as per agreed upon procedures?
In an audit conducted under agreed-upon procedures, the auditor provides only factual findings and does not offer opinions, conclusions or assurances in the final report. Instead, the auditor’s report simply presents the facts, with the audit facilitators drawing their own conclusions from the findings.
Who can perform agreed upon procedures?
In an agreed-upon procedures engagement, the practitioner performs the procedures that have been agreed upon by the practitioner and the engaging party, where the engaging party has acknowledged that the procedures performed are appropriate for the purpose of the engagement.
References:
- https://pcaobus.org/oversight/standards/attestation-standards/details/AT101
- https://www.investopedia.com/terms/a/attest-function.asp
- https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/growing-your-practice-agreed-upon-procedures-engagements
- https://www.tgccpa.com/2017/03/faqs-about-agreed-upon-procedures/
- https://study.com/academy/answer/which-of-the-following-professional-services-is-an-attestation-engagement-a-a-consulting-service-engagement-to-provide-computer-processing-advice-to-a-client-b-an-engagement-to-report-on-compliance-with-statutory-requirements-c-an-income-tax-engagem.html
- https://www.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/ssae-19.pdf.
- https://www.bnncpa.com/resources/audit-review-or-compilation/
- http://www.aast.edu/pheed/staffadminview/pdf_retreive.php?url=157_37315_EY315_2013_4__1_1_AEB14_SM_CH02_v1.doc&stafftype=staffcourses
- https://us.aicpa.org/content/dam/aicpa/interestareas/professionalethics/resources/downloadabledocuments/toolkitsandaids/nonattest-services-toolkit.pdf
- https://www.camico.com/blog/SSAE-19-changes-landscape-for-agreed-upon-procedures-engagements
- https://www.aicpa.org/research/standards/compilationreview/downloadabledocuments/ar-c-00080.pdf
- https://opentuition.com/acca/financial-due-diligence/
- https://www.cpajournal.com/2017/07/18/distinguishing-agreed-upon-procedures-consulting-engagements-reports/
- https://searchcompliance.techtarget.com/definition/agreed-upon-procedures-AUP
- https://www.ifac.org/system/files/publications/files/ISRS-4400-Revised-Agreed-Upon-Procedures-final.pdf