 Hello and welcome to the session. This is Professor Farhad in which we would look at an agreed upon procedures report Just like what we did with Examinations and reviews as part of the attestation engagement We explained the concept then we looked at a report to see the end product. Well, this is the end product of an agreed upon procedures Well, we're gonna go over the report step by step and it's gonna wrap up It's gonna summarize everything that we learned in the prior session about agreed upon procedures The first thing I want to tell you is there's no standard report just like with reviews Just like with examination the AI CPA don't have a standardized standardized report However, they do provide several examples of you Google attestation engagement AI CPA and you will go to their literature You will see several examples. So I used one example to illustrate the concept but I'm gonna show you what are some of the common things that you would see in the report and It's a good review for agreed upon procedures one It has to have a title and it has to have the word independent. It's a reminder That we have to be Independent remember for an agreed upon procedures. We are not giving an opinion We are not given a conclusion. We are given a finding nevertheless, although it's a finding We have to be independent. We have to have the name of the address C Who's the address C? Who are we? Who are we addressing? Then we're gonna look we're gonna talk about the nature of the engagement We have performed the procedures agreed upon procedures and Enumerated below on the claims of creditors of Adam company. So you're gonna see on the next slide I have a list of steps. What are the enumerated below? You're gonna see it in a moment But we have to let you know the nature of the procedure. It's agreed upon procedure Identify the subject matter well on the claims of creditors of Adam company with the date Set forth and the accompanying schedule a so this is the subject matter for our agreed upon procedures Identify the specified parties. It's obvious. We're gonna have to identify the specified parties shortly But we have to show them otherwise you are agreeing with someone upon the procedures Remember Adam company is responsible for the claims of the creditors of Adam company We're not responsible for that. Just want to make sure that they are responsible for that Now we're gonna talk about the procedures performed and that the and the parties specified parties agree to it Adam company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of Assisting the users in understanding the claims of creditors of Adam company So now we are talking a little bit more about what we are doing here. What's the intended process? Additionally notice here. We have another party non participating party the trustee of Adam company So you can add a non participating party, but they also have to agree To and acknowledge that the procedures performed are appropriate to meet their purposes So you can have You can have an agreed upon procedures with one party Then add another party to the rip to the report as a user of that report as long as that other party Agreed to and acknowledge that the procedures performed are appropriate. So you have to tell this tell us this This report may not be suitable for any other purpose. So here we're starting to limit the report We're gonna limit it a little bit more later So who's responsible for the subject matter? We said that Adam company is and now we're gonna talk a little bit more about the procedures The procedures performed may not address all the items of interest to a user of this report and may not meet all The needs of all users of this report and as such users are responsible for determining whether the procedures performed are Appropriate for their purpose. So just telling you be careful. Just it may not be good for all purposes Non-participating party here is the trustee of Adam company Okay, and the users are responsible for the sufficiency of the procedures performed and they have to tell us this in a written assertion as well Before we proceed any further. I have a public announcement about my company far hat lectures dot com Far hat accounting lectures is a supplemental educational tool That's gonna help you with your CPA exam preparation as well as your accounting courses My CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Miles My accounting courses are aligned with your accounting courses broken down by chapter and topics. My resources consist of Lectures multiple choice questions through false questions as well as exercises go ahead start your free trial today No obligation no credit card required now remember we talked about the Procedures below we have to explain the procedures and here's what we did list the procedures The procedures could be part of the report itself Which is in this situation part of the report itself or it could be part of an appendix or attachment to the report Here's what we did at the procedure and associated finding our follow imagine This is a long report obtain a general ledger obtain the claim form submitted by creditors using the claim obtained Form obtained the procedures blah blah blah these are the procedures that we went over We don't you know it could be different things for different agreed-upon procedures We would say no exceptions were found as a result of this procedures We're not done yet. We're gonna have to let you know that we followed a ICPA Standards we were engaged by Adam company This is the engagement party to perform this agreed-upon procedure and conducted our engagement in accordance with the ICPA established Attestation standard we were not engaged so notice here. I'm gonna I'm gonna highlight this because I believe that's important We will have to say we did not do an examination. We did not do a review Which if we did do it express an opinion or a conclusion, but we did not do that We tell you explicitly that we did not do that Accordingly with a nut express an opinion or a conclusion Be careful had we performed additional procedures other matter might have come to our attention that would have been reported to you just so you know No examination no review. Okay, if specialist is used we talk about the specialist of any materiality. We'll talk about any materiality used Any reservation concerning procedures or finding be careful if we if we if we did additional procedures We might have found something else Again, we would report again that we are independent again independence is important This is an assurance service. We have to be independent of Adam company at XYZ of Adam company The report now this year now we're gonna restrict the report. This is important Agreed upon procedures is restricted because it's agreed upon between two parties The report is intended solely for for the information and use of Adam company and the trustee of Adam company the non-participation Participating party and is intended to be and should be and should not be used by anyone other than the specified party This is how we restrict the report now if there is any other matter We need to emphasize we can have a additional paragraph and obviously we have a Signature block. What should you do now go to far hat lectures and work MCQs? This topic is important on the CPA exam Most college courses they don't cover it But there you go, you have it make sure you know the difference between reviews examination agreed upon procedures Understand them look at the report to get them to get the full picture. Good luck. Study hard and stay safe