Engagements for the performance of contracted procedures are engagements in which the auditor is engaged to perform procedures that by their nature belong to auditing, in accordance with the International Standard for Related Services and the Terms of Engagement 4400.
The goal of engaging in the performance of contracted procedures is to conclude a contract between the auditor and the client in which the procedures and procedures will be accurately stated, as well as a clear understanding of the contracted procedures and conditions of engagement that the auditor should carry out and submit a report on the findings of the factual situation. For this reason, users of the report must agree with the procedures in advance and know why these procedures were contracted, in order to avoid misinterpretation of the findings.
Matters to be agreed upon include the nature of the engagement, adding that the procedures performed will not constitute an audit or review and accordingly no assurance will be expressed.
When performing the contracted procedures, the auditor will adhere to the General Principles of Engagement, i.e. the Code of Ethics for Professional Accountants, published by the International Ethical Standards Board for Accountants (IESBA):