The limitations of the engagements to perform agreed-upon procedures regarding financial information according to ISRS 4400

This article aims to identify and illustrate the inherent limitations of an engagement to perform agreed-upon procedures regarding financial information by starting from an audit mission to perform agreed-upon procedures seeking, on one hand, to determine with the help of the financial statements the level of certain financial indicators underlying a bank loan application and, on the other hand, seeking to issue proposals for the Board of Directors of a company to have these financial indicators reach the minimum level starting with a projected date. Therefore, the reasons why such a mission doesn’t comply with the provisions of ISRS 3400, but with the ISRS 4400 provisions were identified, the latter being applicable to the agreed-upon procedures engagements. The limitations of such an engagement were noticed especially regarding the TERMS OF THE audit ENGAGEMENT within a contract signed for this purpose, developed by the authors, with their reporting and based on Decision no. 73 of September 20, 2006 of the Chamber of Financial Auditors Romania regarding the approval of the procedures for quality control of the financial audit activity and related services.