We heard from members. Their clients want them to perform procedures and report in a format similar to an agreed-upon procedures (AUP) engagement, with more flexibility. To be responsive to the needs of our members and the public, the AICPA Accounting and Review Services Committee (ARSC), got together with the Auditing Standards Board (ASB) and developed a new proposed standard, Selected Procedures. If adopted, it will address several practice issues that CPAs are experiencing today and result in a standard that is in the public interest.
Development of the procedures
In an AUP engagement:
- The CPA performs procedures that are established by specified parties.
- The specified parties are responsible for the sufficiency of the procedures for their purposes.
- The engagement letter is required to include agreement on the procedures.
- In circumstances where the procedures evolve or are modified over the course of the engagement, the CPA is required to amend the engagement letter to reflect the modified procedures.
- The practitioner’s report is restricted to the use of those parties that established and agreed on the sufficiency of the procedures
In practice, many CPAs find that the specified parties are unable or unwilling to develop the procedures needed.