What does AUP mean in audit?
What does AUP mean in audit?
An agreed-upon procedure is a standard a company or client outlines when it hires an external party to perform an audit on a specific test or business process. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.
Is an AUP an assurance engagement?
An agreed-upon procedures engagement is not an assurance engagement,1 even though similar procedures are performed, because the purpose of the procedures performed is not to obtain sufficient appropriate evidence on which to base a conclusion.
Is agreed upon procedures attest engagement?
Agreed-upon procedures engagements are a special type of attest services that differ significantly from consulting services in purpose and reporting and performance requirements.
What is the difference between review engagements from agreed upon procedures?
Review Engagements: the practitioner provides a limited assurance report following a review of the entities historical financial statements. Agreed-Upon Procedures (AUP) Engagements: the practitioner provides a report based on factual findings regarding financial information—no assurance is expressed.
Who can perform agreed upon procedures?
4. 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.
What is a compilation engagement?
A compilation engagement is a mandate through which a certified public accountant collects the information provided by the management of the company and presents it in the form of financial statements.
What PSRS 4400?
Philippine Standard on Related Services (PSRS) 4400, “Engagements to Perform Agreed-upon Procedures Regarding Financial Information” should be read in the context of the “Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,” which sets out the application and …
What is an engagement procedure?
Audit engagement refers to audit performed by an auditor. Thus, the audit engagement procedure is basically a negotiation based on professional terms that takes place between prospective customer and a public accounting entity.
Do you have to be independent to perform agreed upon procedures?
The practitioner has to be independent in order to perform an AUP. One exception exists when the practitioner “is required by law or regulation to accept an agreed-upon procedures engagement and report on the procedures performed and findings obtained.”
Do you need to be independent for agreed upon procedures?
The standard states that independence is not a requirement for agreed-upon procedures engagements, however the terms of the engagement or national standards may require the professional accountant to comply with the independence requirements of the Code of Ethics for Professional Accountants.
Do you have to be independent to report on agreed upon procedures?
020) modifies the independence requirements for agreed-upon procedures engagements. Among other things, this interpretation only requires the practitioner to be independent from the responsible party or parties when agreeing to issue reports in accordance with SSAEs.
What is the difference between an audit and agreed upon procedures?
Unlike an audit, auditors do not give an opinion on subject matters in the agreed-upon procedures. Auditors only report of findings based on the agreed procedures performed on the subject matter. In the agreed-upon procedures, auditors do not perform an examination or a review like in an audit or a review engagement.