Date posted: 24/08/2018

Better support for NZ AUP engagements

An updated New Zealand Agreed Upon Procedures standard (APS-1) provides better guidance for these engagements

In brief

  • AUP engagements are a growth area as members seek to adequately and cost effectively serve their client’s needs.
  • A revised standard APS-1(revised) now provides more clarity and support for members and others using these engagements
  • The standard is operative from 1 January 2019 with early adoption permitted.

The New Zealand Regulatory Board (NZRB) has revised and reissued its standard on Agreed Upon Procedures Engagements APS-1(revised) Agreed Upon Procedures to Report Factual Findings. The update gives members, clients and regulators the clarity they need to effectively perform and use these engagements effectively. Its release follows comprehensive support for the changes expressed during the recent consultation phase.

The revised standard provides clear guidance around the aims and objectives of an AUP engagement. In particular it explains how these differ from other types of engagements such as audits and reviews. The aim is to ensure that members, clients and regulators clearly understand the differences between them and other types of engagements such as audits and reviews. That way users are more likely to choose the engagement type that is best suited to their needs. The standard then provides comprehensive requirements and guidance material on engagement design, acceptance, performance and reporting. Appendices contain examples and specimen documentation for further support. 

Operative date 

The new standard applies to engagements where members are appointed after 1 January 2019 with early adoption permitted. It supercedes the existing engagement standard APS -1 Statement of Agreed Upon Procedures Engagement Standards 1 (APS -1) and its accompanying guidance statement APG-1 Guideline on Performance of An Agreed Upon Procedures Engagements, both of which have been withdrawn from this date.

It will serve the New Zealand market until such time as the NZAuASB gains a mandate to issue a standard on AUP engagements that will take into consideration the outcomes of the current IAASB revision project for its AUP standard (ISRS 4400).

Those proposals were released in early November as Exposure Draft (ED) ISRS 4400 (Revised), Agreed-Upon Procedures Engagements and close for comment on 15 March 2019. Key issues being addressed by the IAASB ED relate to professional judgement , independence and the use of experts . CA ANZ will be preparing a submission based on the feedback provided during the development of APS-1(revised) . However if members have additional comments they should email them to [email protected].

Consultation process

Take a look at the consultation process with the NZRB

Read more

Proposed International Standard on Related Services 4400 (Revised), Agreed-Upon Procedures Engagements

The International Auditing and Assurance Standards Board (IAASB) seeks public comment by March 15, 2019 on its Exposure Draft of proposed ISRS 4400 (Revised), Agreed-Upon Procedures Engagements

Read more

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