Agreed Upon Procedures Agreement

The XYZ Fund agreed and acknowledged that the procedures implemented are likely to achieve the intended objective of helping users understand the XYZ Fund`s investment performance statistics for the year to December 31, 20X8. This report may not be suitable for other purposes. The procedures implemented may not address all elements of interest of a user in this report and may not meet the requirements of all users of this report and, as such, it is the responsibility of users to determine whether the procedures performed are appropriate for their purposes. Such unviable conclusions can lead to misunderstandings, so that the practitioner can potentially become an insurer or equivalent guarantor of the client`s obligation to third parties. Instead, the practitioner can effectively propose an AUP agreement on forecasts, test relevant control procedures and agree on future promised transactions with source documentation. In implementing an agreed procedural transaction based on historical financial information, practitioners should at least comply with the obligations of ISS 4400 in order to implement agreed financial reporting procedures. ISRS 4400 also provides useful guides for non-financial information commitments. The value of UPA comes from the practitioner who objectively performs procedures and tests with appropriate expertise, thus saving the engaged party who performs the procedures and tests himself. AEAs are most effective when the parties involved are competent enough to identify the area or subject matter they are focusing on, discuss and agree on the procedures to be implemented and interpret the results in their own decision-making process. Agreed procedures may also provide a third party with the comfort of complying with a company`s legal or contractual requirements. Practitioners should take into account the increased risk associated with the third party`s interest in the report and may, for example, prefer to agree on a volume of work that is clearly part of SSRI 4400 rather than being explained by a subjective professional opinion.

The practitioner should also consider the conditions that should be related to the use of the report by the third party. Practitioner documentation of agreed procedures is required to include the following: We are required to be independent of the XYZ Fund and to fulfill our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed procedural commitment. Second, the practitioner and the engaging party should give written consent on the terms of the undertaking (normally in an engagement letter), including that the committed party provide the practitioner with a written agreement and recognition of the compliance of the procedures implemented for the purposes of the engagement and a letter of representation after the engagement is concluded.