Revised Illustrative Section 15 Retirement Fund Agreed-upon Procedures Reports

Notice

The Independent Regulatory Board for Auditors’ (IRBA) Committee for Auditing Standards,
at its meeting on 1 March 2022, approved the following revised Illustrative Section 15 Retirement Fund Agreed-upon Procedures Reports:

• Ordinary Funds
• Umbrella Funds; and
• Retirement annuity and preservation Funds.

Information

The revised illustrative regulatory reports have been updated for the following:

• The International Standard on Related Services (ISRS) 4400 (Revised), and
• Agreed-Upon Procedures Engagements (ISRS 4400 (Revised)).

The changes include the following:

• Scope and Responsibilities – New requirements and application material clarify responsibilities in relation to the various parties such as the engaging party, intended users and responsible party.
• Compliance with Independence Requirements – New requirements and application material recognise that, even when the auditor may not be required to comply with independence requirements, they may still agree with the engaging party that compliance with independence requirements is appropriate
• The Agreed-Upon Procedures Report – Enhanced transparency on the parties’ responsibilities and requirement for independence. Guidance is also provided to the auditor in deciding whether to restrict the use or distribution of the Agreed-upon Procedures report.

Implications

ISRS 4400 (Revised) is effective for agreed-upon procedures engagements for which the terms of engagement are agreed on or after 1 January 2022. Accordingly, engagement teams should consider updating previously signed engagement letters.

Context for the beginner

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