A Report on Agreed Procedures is a valuable tool used in reviewing the financial information of entities. It involves performing specific procedures to obtain relevant findings.
To better understand the nature and uses of these procedures, this article discusses the concept and practical applications of the Report on Agreed Procedures.
Overview of the Report on Agreed Procedures
The Saudi Organization for Certified Public Accountants (SOCPA), through the Auditing Standards Committee, has adopted the revised International Standard on Related Services (ISRS) 4400.
These updates were implemented for several reasons:
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To make the report clearer and more concise.
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To enhance consistency in applying Agreed-Upon Procedures engagements.
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To rephrase the standards in alignment with international standards.
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To expand the scope to include both financial and non-financial matters.
The revised Report on Agreed Procedures also emphasizes transparency in outlining the responsibilities of involved parties. It now requires a clear statement of the report’s objective and the nature of the engagement—an improvement over the previous version of the standard.
Additionally, the new standard no longer requires the accountant to confirm that the report is restricted to parties who agreed to the procedures. The decision to include such a statement is left to the professional judgment of the certified accountant, along with guidance on limiting the use of the report.
Services of Agreed-Upon Procedures
Agreed-Upon Procedures are a type of assurance service provided by a certified public accountant. They involve applying specific procedures and issuing a report in compliance with the revised ISRS 4400.
There are various use cases for the Report on Agreed Procedures, including:
Local Content Reporting
These reports help measure a company’s local content to support the issuance of a local content certificate.
Judicial Reports
The reports may be used in legal disputes by presenting them to judicial authorities to support a specific point of view.
Police Reports
They may also be submitted to law enforcement or the Public Prosecution as independent reports supporting investigations.
Reports to Government Entities
The Report on Agreed Procedures can be prepared for various governmental authorities for different purposes.
You can learn more about such regulatory frameworks on the Saudi Organization for Certified Public Accountants website.
Reports for Specific Confirmations
These reports assist entities in making informed decisions, resolving financial disputes, and uncovering legal violations or fraud within organizations.
At Business Pillars Company, we are certified accountants and auditors who provide Agreed-Upon Procedures services through a specialized and experienced team. We are committed to achieving our clients’ goals while adhering to applicable laws and regulations to ensure the best possible outcomes.
Approved Auditing Standards
Approved auditing standards serve as essential tools for auditors during review and assurance processes. The Saudi Organization for Certified Public Accountants has adopted international standards for auditing, review, and other assurance engagements.
Key approved standards in Saudi Arabia include:
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ISA 200: Outlines the overall objectives of the independent auditor and the audit process.
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ISA 230: Focuses on audit documentation.
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ISA 250: Addresses compliance with laws and regulations when preparing financial statements.
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ISA 700: Covers forming an opinion and reporting on financial statements.
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ISRS 4400: The revised standard for Agreed-Upon Procedures engagements.
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ISRS 4410: Pertains to compilation engagements.
Conclusion
In summary, this article discussed the Report on Agreed Procedures according to Saudi standards. We explained how the report is prepared, its various use cases, and highlighted the approved auditing standards in Saudi Arabia.
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