The professional bodies joint submission supports the AUASB’s proposals to revise its existing standard ASRS 4400 Agreed-Upon Procedures Engagements to Report Factual Findings to align with the recently revised international equivalent ISRS 4400 Agreed-Upon Procedures Engagements. Both are effective for engagements where terms are agreed on or after 1 January 2022.
While the proposed revised standard no longer has mandatory independence requirements or report restrictions, it does permit users and engaging parties to apply more onerous requirements if these are appropriate to the circumstances of the engagement. CA ANZ and CPA Australia concur with the AUASB’s view that mandatory requirements for these matters in Australia is unnecessary, reflecting both the need to cost effectively facilitate the use of these engagements and promote international harmonisation. However, our submission encourages the AUASB to supplement the guidance provided by the IAASB with examples of suitable wording in the engagement letter and AUP report for both independence requirements and report restrictions in the interests of promoting consistency and quality.