ISRS

Pertemuan #13

Agreed-Upon Procedures Regarding

Financial Information (ISRS 4400)

Objective
The objective of an agreed-upon procedures engagement is for the auditor
to carry out procedures of an audit nature to which the auditor and the entity
and any appropriate third party have agreed and to report on factual findings.
The auditor simply provides a report of the factual findings of agreed-upon
procedures, no assurance is expressed.
Users of the report assess for themselves the procedures and findings
reported by the auditor and draw their own conclusions from the auditors
work.
The report is restricted to those parties that have agreed to the procedures to
be performed since others, unaware of the reasons for the procedures, may
misinterpet the results

Engagement Terms
The auditor should ensure with the representatives of the entity and,
ordinarily, other specified parties who will receive copies of the report of
factual findings, that there is a clear understanding regarding the agreed
procedures and the conditions of the engagement.
Matters should be included in the engagement letter:

A listing of the procedures to be performed as agreed-upon between

the parties

A statement that the distribution of the report of factual findings would

be restricted to the specified parties who have agreed to the
procedures to be performed

Procedures
The auditor should plan the work so that an effective engagement will be
performed.
The auditor should document matters which are important in providing
evidence to support the report of factual findings, and evidence that the
engagement was carried out in accordance with the Standard and the
terms of engagement.
The auditor should carry out the procedures agreed upon and use the
evidence obtained as the basis for the report of factual findings

Report on AUP
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Title
Addressee
Identification of specific financial information or non-financial information.
A statement that the procedures performed were those agreed upon with the recipient
A statement that the engagement was performed in accordance with Standard
When relevant, a statement that the auditor is not independent of the entity
Identification of the purpose
Listing of procedures performed
Description of factual findings
Statement of no assurance is expressed since it is not an audit or a review
Statement that other matters might have come to light, if auditor performed
audit/review/other procedures
Statement of report restriction
Date of report
Signature

AUP Report on Accounts Payable

We have performed the procedures agreed with you and enumerated below woth respect to the accounts
payable of PT ABC as at 31 October 2014, set forth in the accompanying schedules. Our engagement was
undertaken in accordance with the Standard applicable to agreed-upon procedures engagements. The
procedures were performed solely to assist you in evaluating the validity of the accounts payable and are
summarized as follows: .....
We report our findings below:
Because the above procedures do not constitute either an audit or a review made in accordance with
Standar..., we do not express any assurance on the accounts payable as of 31 October 2014.
Have we performed additional procedures or had we performed an audit or review of the financial
statements in accordance with Standard..., other matters might have come to our attention that would have
veen reported to you.
Our report solely for the purpose set forth in the first paragraph of this report and for your information and
is not to be used for any other purpose or to be distributed to any other parties. This report related only to
the accounts and items specified above and does not extend to any financial statments of PT ABC, taken
as a whole.
Date
Signature

Compilation Engagements (ISRS 4410)

Objective
Compilation engagement is an engagement in which practitioner applies
accounting and financial reporting expertise to assist management in the
preparation and presentation of financial information of an entity in
accordance with an applicable financial reporting framework and reports as
required by ISRS.
Compilation is not an assurance engagement and does not require the
practitioner to verify the accuracy or completeness of the information
provided by management for compilation or otherwise to gather evidence to
express an audit opinion or a review conclusion on the preparation of the
financial information.
Management retains responsibility for the financial informatoin and the basis
on which it is prepared and presented.

Performing the Engagements

The practioner should obtain an understanding of the entitys business and
operation and the applicable financial reporting framework.
The practitioner shall compile the financial information using records,
documents, explanation and other information provided by management.
The practitioner shall discuss significant judgements, for which the
practitioner had provided assistance in the course of compiling the financial
information.
Prior completion, the practitioner shall read the compiled financial information
in light of the practitioners understanding of business and applicable financial
reporting framework.

Performing the Engagements

If the informations are incomplete, inaccurate or unsatisfactory, the practitioner
shall bring that to the attention of management and request additional
information.
If the practitioner aware during process that the compiled financial information
should be amend, the practitioner should propose the appropriate amendments
to management.
The practitioner shall include in the documentation

Significant matters

Record of how compiled financial information reconciles with underlying

records, documents, explanations, and other information

Copy of final version of the compiled financial information for which

management has acknowledged their responsibility and the practitioners
report.

Report on Compilation
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Title
Addressee
Statement that the practitioner has compiled the financial information based
on information provided by management.
Responsibility of management in relation to the compilation engagement and
to the financial information
Identification of applicable financial reporting framework
Identification of financial information
Identification of practitioners responsibilities
Identification of related standard of compilation
Statement of no assurance is expressed since it is not an audit or a review
Date of report
Signature

Compilation Report
We have compiled the accompanying financial statements of PT ABC based on information provided
by management of the Company. These financial statements comprise ......
We performed this compilation engagement in accordance with ISRS 4410, Compilation.
We have applied our expertise in accounting and financial reporting to assist you in the preparation
and presentation of these financial statements in accordance with PSAK. We have compiled with
relevant ethical requirements, including principles of integrity, objectivity, professional competence and
due care.
These financial statements and the accuracy and completeness of the information used to compile
them are managements responsibility.
Since a compilation engagement is not an assurance engagement, we are not required to verify the
accuracy or completeness of the information you provided to us to compile these financisl statements.
Accordingly, we do not express an audit opinion or a review conclusion on whether these financial
statements are prepared in accordance with PSAK.
Date
Signature