Audit & Assurance Services
Other Assurance Services
The proportion of small and medium-sized practices (SMPs) undertaking audits of small and medium-sized entities (SMEs) in many jurisdictions has reduced in recent years, partly as a result of the introduction of, or increase to, audit thresholds.
There are a number of non-audit services available for SMEs, including review, compilation, other assurance, and engagements to perform agreed-upon procedures. The choice of service will depend on the circumstances for each individual entity and requires careful consideration. A brief summary of the options and the applicable international standard are as follows:
- Review Engagements: the practitioner provides a limited assurance report following a review of the entities historical financial statements. This can be based on the International Auditing and Assurance Standards Board (IAASB)’s International Standard on Review Engagements (ISRE) 2400 (Revised);
- Compilation Engagements: the practitioner assists management in preparing and presenting historical financial information and issues a report stating that no assurance is provided. This can be based on the IAASB’s International Standard on Related Services (ISRS) 4410, Compilation Engagements;
- Other Assurance Engagements: the practitioner provides either reasonable or limited assurance under the IAASB’s International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information; and
- Agreed-Upon Procedures (AUP) Engagements: the practitioner provides a report based on factual findings regarding financial information—no assurance is expressed. The report is not distributed publicly—it is restricted to those parties that have agreed to the procedures. The engagement can be based on the IAASB’s ISRS 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information.
The revised requirements and application material promote consistency in the performance of agreed-upon procedures engagements, and include enhancement relating to, among other matters, the exercise of professional judgement, compliance with independence requirements, engagement acceptance and continuance considerations, using the work of a practitioner’s expert, and greater clarity and transparency in the agreed-upon procedures report.
our office address
The Alchamii Auditing of Accounts, 965D, Tamani Arts Offices, Business Bay, Dubai, UAE.
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