ISRS 4400 represents an international standard for agreed-upon procedures engagements. It provides guidance to auditors when they are engaged to perform specific procedures on financial or non-financial information, and to report factual findings. The procedures are determined by the engaging party, and the auditor provides a report of the results of applying those procedures.
The significance of this standard lies in its flexibility. It allows parties to obtain independent verification of specific items or areas of interest without requiring a full audit or review engagement. This is particularly beneficial when a limited scope verification is sufficient to address a specific concern or need. Historically, it has provided a cost-effective alternative to more comprehensive assurance engagements when a targeted approach is appropriate. It can be a useful tool for providing assurance to lenders, investors, or other stakeholders on specific aspects of an organization’s operations.
