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Revised Statement of Auditing Practice (SAP) 2, Auditors and Public Offering Documents

SAP 2 (Revised 2022) provides guidance on the reporting auditor’s roles and responsibilities when engaged as a professional in a public offering exercise, and general principles governing engagements relating to public offering documents.

SAP 2 includes a section which indicates what reporting auditors should comment in their private reports on profit forecast (whereby the profit forecast is not prepared for inclusion in the prospectus) and also states that the engagement should be carried out in accordance with Singapore Standard on Related Services (SSRS) 4400 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information and SAP 2. A sample format of a report by the reporting auditors on profit forecasts is included in Example 6 of Appendix 1 to provide illustrative guidance.

As there have been amendments to SSRS 4400, SAP 2 has been updated to align to SSRS 4400 (Revised) Agreed-Upon Procedures Engagements. Key revisions made to align the illustrative report to SSRS 4400 (Revised) include:

  • Clearer and more consistent language;
  • Increased transparency on the responsibilities of the various parties involved in an agreed-upon procedures (AUP) engagement;
  • Describing the findings of the AUP engagement in the report in an objective manner and in sufficient detail;
  • Increased transparency on whether the reporting auditor is required to comply with independence requirements, and if so, the relevant independence requirements; and
  • Inclusion of an option for the reporting auditor to include a restriction of use paragraph to limit the usage of the report to the intended users as specified in the engagement letter between the reporting auditor and the client. This is because SSRS 4400 (Revised) no longer requires the reporting auditor to include a statement that the report is restricted to those parties that have agreed to the procedures performed.

Please click here for the revised Statement.

Effective date 

The revised statement is effective for agreed-upon procedures engagements for which the terms of engagements are agreed on or after 20 January 2022.

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