Alert: Canadian Standard on Related Services (CSRS) 4400 Agreed-Upon Procedures Engagements

Category: Assurance

Alert: Canadian Standard on Related Services (CSRS) 4400 Agreed-Upon Procedures Engagements

In August 2020, the Auditing and Assurance Standards Board (AASB) issued the new standard CSRS 4400, Agreed-Upon Procedures Engagements, to the CPA Canada Handbook – Assurance. The standard was developed to update Section 9100 Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements and to align Canadian standards with International Standard on Related Services (ISRS) 4400.

CSRS 4400 will be effective for agreed-upon procedures engagements for which the terms of engagement are agreed on or after January 1, 2022. Early application is permitted.

This standard applies to the performance of agreed-upon procedures engagements on financial or non-financial subject matters. CSRS 4400 will replace:

  • Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information other than Financial Statements; and
  • Section 9110, Agreed-Upon Procedures Regarding Internal Control Over Financial Reporting.

CSRS 4400 outlines the practitioner’s responsibilities when engaged to perform an agreed-upon procedures engagement and the form and content of the agreed-upon procedures report.

CSRS 4400 is more detailed in terms of requirements and application material compared to the replaced standards. The standard sets out requirements relating to:

  • engagement acceptance and continuance;
  • agreeing the terms of the engagement;
  • performing the agreed-upon procedures;
  • using the work of a practitioner's expert;
  • the agreed-upon procedures report;
  • undertaking an agreed-upon procedures engagement together with another engagement; and
  • documentation. 

The objectives of the practitioner when performing a CSRS 4400 engagement are to:

  • Agree with the engaging party the procedures to be performed;
  • Perform the agreed-upon procedures; and
  • Communicate the procedures performed and the related findings in accordance with the requirements of this CSRS.

In conducting an agreed-upon procedures engagement, the practitioner does not express an assurance opinion or an assurance conclusion in any form. Rather, the users of the agreed-upon procedures report consider the findings based on the procedures performed and draw their own conclusions.

The full history of this AASB project can be accessed here. The Basis for Conclusions that summarizes the AASB’s key considerations in reaching its conclusions on this project can be accessed here.

CPA Canada recently released a blog post and alert highlighting some of the changes in the new standard.

This communication contains a general overview of the topic and is current as of September 30, 2020. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2020. All rights reserved.

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Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.