IFAC SMP Committee Comment Letter on the IAASB's Exposure Draft on Agreed-Upon Procedures

Overall, the SMPC generally supports the approach taken and proposed changes to ISRS 4400 (Revised). It specifically supports the clarification that ISRS 4400 (Revised) applies to the performance of AUP engagements on both financial and non-financial subject matters and the intention to retain the approach whereby practitioners report on the factual results from performing an AUP engagement differentiating this from subjective findings. The SMPC agrees that considerable professional judgment will be required. However, it considers that professional judgment cannot be required for the actual performance of the procedures because the findings would no longer represent factual findings. It also agrees that ISRS 4400 (Revised) should be enhanced for the use of experts in AUP engagements, but it is not yet as clear as it could be as to situations where a practitioner has recourse to an expert.