Agreed Upon Procedures: New SSAE No. 19 Implementation

Description

As stated in SSAE No. 19, "an agreed-upon procedures engagement is an attestation engagement in which a practitioner performs specific procedures on subject matter and reports the findings without providing an opinion or conclusion. The subject matter may be financial or nonfinancial information. Because the needs of an engaging party may vary widely, the nature, timing, and extent of the procedures may vary, as well." The American Institute of CPAs (AICPA) Auditing Standards Board (ASB) released SSAE No. 19 in December 2019, effective for AUP engagements dated on or after July 15, 2021.

The nature of these engagements creates a need for flexibility, which the ASB has incorporated in SSAE No. 19. AUP engagements often evolve as performed. The new standard allows the development of procedures over the course of the AUP by allowing the engagement party to acknowledge their satisfaction with the procedures before issuance of the general use report. Examples of general use reports are included in SSAE No. 19, along with acceptable and unacceptable terms. Words such as evaluate, examine, and general review are deemed unacceptable, while inspect, compare, and agree are condoned.

AUPs are designed to meet a specific need that a full-fledged audit cannot address. Auditors need to understand AUPs and the new SSAE now since the effective date is imminent and early implementation is permitted.

Listen as our panel explains new SSAE No. 19 from the initial engagement to the issuance of the general use report, including recommendations for efficiently completing AUPs for CPAs performing limited assurance engagements.