Selected Procedures Engagements
The AICPA has proposed a new engagement type that could be offered by accounting firms. The proposed service would provide flexibility for selected procedures engagements not currently available in agreed-upon procedures (AUP) engagements.
Key Differences from AUP Engagements
Selected procedures engagements, as proposed, would differ from AUP engagements in the following key respects:
- The practitioner would not be required to request or obtain an assertion from any party;
- The proposal does not include a requirement regarding who determines the procedures to be applied, and the practitioner may determine such procedures;
- The specified parties would not be required take responsibility for the sufficiency of the procedures for any purpose, although the practitioner, the engaging party, or another party may take such responsibility; and
- The practitioner would not be required to restrict the use of the report but would be able to allow use of it by a wider audience.
The Proposed Standard
The AICPA’s Auditing Standards Board (ASB) today issued a Proposed Statement on Standards for Attestation Engagements (SSAE), Selected Procedures (Exposure Draft). As noted in the introduction to the Exposure Draft, the proposed SSAE, if adopted as proposed, would add flexibility to the procedures and reports outside of the requirements in AT-C Section 215, Agreed-Upon Procedures Engagements.
The proposed standard would limit the use of such engagements in litigation services that involve pending or potential legal or regulatory proceedings. If issued as proposed, the final standards will also include conforming changes to AT-C Section 105, Concepts Common to All Attestation Engagements.
The effective date in the proposal is for reports dated on or after May 1, 2019, but in no event earlier than that date. The ASB is seeking feedback on a number of components of the exposure draft in areas identified as “specific request for comment”. Comments are due by December 1, 2017.
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