SSRS 4400 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information
- a22162
- May 6
- 4 min read
SSRS 4400: Agreed-Upon Procedures Explained
SSRS 4400 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information
SSRS 4400, which stands for Singapore Standard on Related Services 4400, specifically addresses Engagements to Perform Agreed-Upon Procedures Regarding Financial Information.
Here's a breakdown of what this entails:
Core Concept:
In an agreed-upon procedures (AUP) engagement, an auditor is hired to perform specific procedures that have been agreed upon by the auditor, the entity engaging them, and any relevant third parties.
The auditor's role is to carry out these agreed-upon procedures and report on the factual findings resulting from those procedures.
Crucially, the auditor does not express any assurance or opinion on the financial information. The users of the report evaluate the procedures and findings themselves to draw their own conclusions.
Key Aspects of SSRS 4400 Engagements:
Objective: To perform agreed-upon procedures concerning financial information and report on the factual findings.
No Assurance: The auditor's report is limited to describing the procedures performed and the resulting findings. No opinion or assurance is provided.
User Responsibility: The users of the report are responsible for interpreting the findings and drawing their own conclusions.
Agreement on Procedures: A clear understanding of the agreed-upon procedures and the terms of the engagement must be established with all relevant parties. This typically includes:
The nature of the engagement.
The specific procedures to be performed.
The intended users of the report.
The financial information to which the procedures will be applied.
The format of the report.
Auditor's Responsibilities:
Adhere to ethical principles (integrity, objectivity, professional competence and due care, confidentiality, professional behavior, and technical standards).
Conduct the engagement in accordance with SSRS 4400 and the agreed-upon terms.
Plan the work effectively.
Maintain adequate documentation to support the report of factual findings.
Perform the agreed-upon procedures and gather evidence as the basis for the report.
Independence: While independence is not always a strict requirement for AUP engagements, the terms of the engagement or relevant Financial Reporting Standards might necessitate it. If the auditor is not independent, this should be stated in the report.
Report of Factual Findings: The report should clearly describe:
The purpose of the engagement.
The agreed-upon procedures performed in sufficient detail.
The factual findings resulting from each procedure, including any exceptions or errors found.
A statement that no audit or review was performed and no assurance is expressed.
A statement that had additional procedures been performed, or had an audit or review been conducted, other matters might have come to light.
A statement restricting the report's use to the specified parties.
The date and place of the report, and the auditor's signature (including their membership number if applicable).
Examples of When SSRS 4400 Engagements Might Be Used:
Verifying specific cost or revenue items for third parties (e.g., for grant claims or lease agreements).
Assessing compliance with contractual terms or regulatory requirements.
Performing due diligence procedures in business acquisitions.
Examining royalty agreements or franchising services.
Providing factual findings on specific aspects of financial information as required by stakeholders.
In essence, SSRS 4400 provides the framework for auditors in Singapore to conduct and report on engagements where the scope is limited to specific procedures agreed upon with the client and intended users, without providing any overall assurance on the financial information.
How Bestar can Help
SSRS 4400 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information
The way an auditor helps in an AUP engagement under SSRS 4400 focuses on providing reliable and objective information based on agreed-upon actions. Here's how Bestar can be valuable in an SSRS 4400 engagement:
Providing Credibility to Factual Findings: As independent professionals, Bestar brings a level of objectivity and rigor to the performance of the agreed-upon procedures. Our adherence to professional standards and ethical guidelines enhances the credibility of the reported factual findings in the eyes of the intended users.
Executing Procedures with Professional Competence and Due Care: Bestar possesses the necessary skills and expertise to perform the agreed-upon procedures accurately and efficiently. We apply due professional care in planning and carrying out the work, ensuring the findings are reliable within the scope of the agreed terms.
Clearly and Objectively Reporting Factual Findings: The auditor's report under SSRS 4400 is structured to present the findings in a clear, concise, and objective manner. We describe the procedures performed and the outcomes without interpretation or opinion, allowing the intended users to understand exactly what was done and what was found.
Facilitating Agreement on Procedures: Bestar can assist the engaging party and intended users in defining the specific procedures that will address their needs and objectives. Our understanding of financial information and audit techniques can help ensure that the agreed-upon procedures are relevant and practical.
Identifying and Reporting Exceptions: When performing the agreed-upon procedures, Bestar is trained to identify and report any exceptions or deviations from what was expected based on the criteria defined in the procedures. This highlights areas that the intended users should pay attention to.
Providing a Structured and Documented Approach: Bestar follows a systematic approach to performing and documenting their work. This provides a clear trail of the procedures performed and the evidence obtained, making the findings more transparent and auditable themselves.
Potentially Uncovering Underlying Issues (Indirectly): While not the primary goal, the performance of specific procedures might inadvertently reveal potential underlying issues or areas of concern within the financial information. The factual reporting of these findings can prompt further investigation by the users.
In essence, Bestar in an SSRS 4400 engagement acts as a reliable fact-finder and reporter. We provide a structured, objective, and credible account of the results of specifically agreed-upon actions, empowering the intended users to draw their own informed conclusions based on these factual findings. The value lies in Bestar's professional execution and clear communication of these facts, rather than any assurance or opinion on the financial information as a whole.
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