Other Non-Assurance Engagements

Question 1

Q: What are non assurance engagements?

Answer 1

A: the
practitioner does not provide any opinion on their findings

Question 2

Q: What are the types of non assurance engagements?

Answer 2

These reports include:
1. agreed-upon procedures engagements
2. reports on the application of accounting principles
3. auditor’s involvement with offering documents
4. auditor’s involvement with designated documents
5. assistance to underwriters and others
6. reports on supplementary matters arising from an audit or review engagement

Question 3

CSRS 4400 Agreed-upon
Procedures Engagements

Agreed-upon procedures engagements

Answer 3

• This is an engagement where a practitioner is engaged to carry out procedures to which the practitioner and the engaging party have agreed and to communicate the procedures performed and the related findings in an agreed-upon procedures report
• Agreed-upon procedures engagements may deal with financial or non-financial information
  and the procedures are not intended to enable the practitioner to express an opinion or an assurance conclusion in any form on the information

Question 4

Reports on the application of accounting principles

Answer 4

This type of engagement applies when an entity requests that a reporting accountant provide a written report or oral advice on:

a) the application of accounting principles to a specific transaction; or

b) the type of opinion that may be rendered on the entity’s financial statements; after having already obtained guidance from its incumbent accountant on this matter.

Question 5

An example of this type of engagement is where a practitioner is asked by an entity to provide advice, either orally or in a written report, on a complex financial accounting transaction such as an interest rate swap.

Section 7600 Reports on the Application of Accounting Principles

Answer 5

Once the practitioner accepts the engagement, they become a “reporting accountant.”

The entity retains the services of the reporting accountant to determine whether
they agree with the incumbent accountant’s recommended treatment.

The practitioner should not accept the engagement if it is for a hypothetical transaction.