Agreed Upon Procedures Letter Template for Singapore

An Agreed Upon Procedures Letter is a crucial document that establishes the terms and scope for performing specific examination procedures on financial or non-financial information. Unlike audit or review engagements, this letter defines targeted procedures without providing opinions or assurance conclusions, making it ideal for specialized business requirements in Singapore's regulated environment.

When do you need this document?

You'll need an Agreed Upon Procedures Letter when conducting due diligence for mergers and acquisitions, verifying specific financial information for lenders or investors, or meeting regulatory compliance requirements that don't require a full audit. This document is particularly valuable when stakeholders need verification of particular aspects of your business operations, such as revenue recognition procedures, inventory counts, or compliance with loan covenants. Professional services firms commonly use this letter when clients require targeted examination of specific accounts or transactions, providing flexibility that standard audit engagements cannot offer.

Key legal considerations

The letter must clearly define the scope of procedures to prevent misunderstandings about the nature and extent of work performed. It's essential to specify that no audit opinion or assurance will be provided, as this distinguishes the engagement from other professional services. The document should outline each party's responsibilities, including the client's obligation to provide accurate information and the practitioner's duty to perform procedures competently. Professional liability considerations require clear limitation of the practitioner's responsibilities and explicit statements about the intended use of findings. The letter must also address confidentiality requirements and specify who can rely on the results of the procedures performed.

Legal requirements in Singapore

Singapore's SSRS 4400 standard governs Agreed Upon Procedures engagements, requiring practitioners to clearly communicate the nature and limitations of the work performed. The Companies Act (Chapter 50) sets the framework for corporate financial reporting that may intersect with these procedures, while the Accountants Act (Chapter 2) regulates professional standards for practitioners. When dealing with listed companies, the Securities and Futures Act (Chapter 289) may impose additional requirements. ACRA requirements mandate that accounting professionals maintain proper documentation and follow established professional standards. The Code of Professional Conduct and Ethics requires practitioners to maintain independence and objectivity throughout the engagement, even though this is not an assurance engagement. All documentation must meet Singapore's professional record-keeping standards and be available for regulatory review when required.