The International Standard of Related Services 4400 “Assignments to Perform Agreed-Up Procedures”: Practical Aspects of Application

Abstract

The optimal ratio between the effect and costs of providing related services contributes to the active use of agreed-upon procedures in the practice of audit firms. The development of measures to improve the performance of agreed-upon procedures should be based on the analysis of regulatory regulation and the systematization of practical issues arising in the process of providing related audit services. Amendments to the international standard for related services 4400 “Engagement of agreed-upon procedures” (ISPA 4400) necessitate a detailed study of the regulatory regulation, with determining the main stages of providing services for the performance of agreed-upon procedures. The article reveals the features of regulation and practical aspects of the engagement to perform agreed-upon procedures, the provisions and requirements of the relevant international standard for related services, with outlining key problems pertaining to the quality of this type of audit services. The results of a review of ISPA 4400 requirements that practitioners must adhere to when performing engagements on agreed-upon procedures are presented. The stages of performing these engagements are elaborated on; regulatory requirements for the structure and content of the Agreed-Upon Procedures Report are given; and the features of quality control for the performance of this type of engagements are determined. It is demonstrated that in performing engagements on agreed-upon procedures, the practitioner must apply a wide range of audit procedures and comply with the requirements on quality management system of the audit firm. Strengthening the requirements for quality control system pertaining to engagements on agreed-upon procedures is a guarantee of trust from interested users and reduced information risks.