SRS 4400 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SRS 4400 is the ICAI standard for the job where a chartered accountant carries out a list of procedures you and the other parties have agreed, and reports only what was found. It gives no opinion and no assurance, so the quality of the engagement depends on how well the procedures and the terms are written down before work starts. If a lender or counterparty has asked for such a report, our compliance advisory team can help you frame the request.
SRS 4400, effective for all agreed upon procedures engagements beginning on or after April 1, 2004 (paragraph 19). ICAI may revise standards, so check the current text on icai.org. ICAI has also proposed a revised SRS 4400 on agreed-upon procedures; the 2004 text described here is the one the icai.org standards page still lists on 4 October 2026, so check the status before you rely on it.
In an agreed-upon procedures engagement the accountant performs specified procedures on specified financial information and issues a report of factual findings. No assurance is expressed (paragraph 5): the reader decides what the findings mean. The report is restricted to the parties who agreed the procedures (paragraph 6), and independence is not a requirement unless the terms or the objective call for it (paragraph 7). Everything depends on the written terms (paragraphs 9 to 12).
What the standard covers
Paragraphs 1 to 3 explain that SRS 4400 deals with the auditor's professional responsibilities, and the form and content of the report, when an engagement to perform agreed-upon procedures on financial information is taken up. The engagement can relate to one item (say, payables, receivables or purchases from related parties), an element of a statement, a whole balance sheet or a full set of statements. The standard may also guide work on non-financial information, provided the accountant has adequate knowledge of the subject and reasonable criteria exist (paragraph 3). The word "auditor" in the text does not mean the person must be the entity's statutory auditor (footnote to paragraph 1).
Where the position is different from an audit or review, the contrast is set out in our hub article on audit, review, agreed-upon procedures and compilation.
Objective: procedures agreed, findings reported
Under paragraph 4 the objective is to carry out procedures of an audit nature that the accountant, the entity and any appropriate third parties have agreed, and to report factual findings. Paragraph 5 states that, because only factual findings are reported, no assurance is given and users assess the procedures and findings themselves. This is the feature that separates the engagement from an audit, which our post on SA 200 covers.
General principles: ethics, independence and compliance
Paragraph 7 requires compliance with the Code of Ethics issued by ICAI and lists the ethical principles of integrity, objectivity, professional competence and due care, confidentiality, professional conduct and technical standards. It then makes a point many users miss: independence is not a requirement for these engagements, but the terms or the objective may require the accountant to comply with independence requirements. Where the accountant is not independent, the report of factual findings must say so. Paragraph 8 requires the work to be done under the standard and the engagement terms.
Setting the terms (paragraphs 9 to 12)
The accountant must make sure that the entity, and ordinarily the other specified parties who will receive the report, clearly understand the procedures and the conditions of the engagement (paragraph 9). The matters to settle in plain terms are:
- the nature of the engagement, including the fact that it is neither an audit nor a review and that no assurance will be given;
- the stated purpose;
- the financial information the procedures apply to;
- the nature, timing and extent of each procedure;
- limits on distribution of the report; if a limit would conflict with legal requirements, the accountant would not accept the engagement.
Paragraph 10 recognises that sometimes procedures are agreed at a higher level, for instance between a regulator, industry representatives and the profession, so the accountant cannot discuss them with every recipient; discussing with representatives or reviewing correspondence is an option. Paragraphs 11 and 12 recommend an engagement letter that records the appointment, lists the procedures and states that distribution is restricted. Appendix I to the standard is an illustrative engagement letter; this article only notes that it exists.
Planning, documentation, procedures and evidence
| Step | What the standard asks | Paragraph |
|---|---|---|
| Plan | Plan so that an effective engagement is performed | 13 |
| Perform | Carry out exactly the agreed procedures and use the evidence as the basis for the findings | 15 |
| Types of procedure | May include inquiry and analysis, recomputation and clerical accuracy checks, observation, inspection and confirmations | 16 |
| Document | Record what supports the report and shows the work followed the standard and the terms | 14 |
The procedures are limited to what was agreed. If the accountant thinks other work would be sensible, that is a conversation to have and to record, not an addition made silently. Appendix II to the standard gives an example report with an illustrative list of procedures; use it only as a pointer to the style, not a menu.
The report of factual findings (paragraphs 17 and 18)
Paragraph 17 asks for a report that describes the purpose and the procedures in enough detail for the reader to understand the work, and says clearly that no audit or review was done. Paragraph 18 sets out its contents. In outline the report carries a title, an addressee (ordinarily the appointing authority), a description of the information tested, the purpose, the specific procedures, and the factual findings with sufficient detail of errors and exceptions found. It states that the work was performed under the applicable standard and the agreed procedures, that it is neither an audit nor a review, that further procedures might have turned up other matters, and that the report is restricted to the agreeing parties. Where relevant it also says that the report does not extend to the entity's financial statements as a whole. It closes with the date, place and signature; the accountant signs in a personal name and, where a firm is appointed, also in the firm's name, with the ICAI membership number.
Worked example (illustrative)
Kalyani Packaging Pvt Ltd, an invented manufacturer, wants a lender to see that its receivables listing agrees to the ledger. The lender and the company agree four procedures: agree the listing total to the ledger; recompute the ageing of 25 named balances; send confirmation requests on five balances chosen by the lender; and inspect subsequent receipts for those five. The accountant issues an engagement letter listing these, restricted to the company and the lender. The report states, for example, that 24 of 25 ageings agreed and one differed by an illustrative amount of Rs 18,000, and that two of five confirmations came back with exceptions. It expresses no view on whether receivables are fairly stated. Compare an audit, where evidence and risk drive the extent of work; our post on SA 210 covers engagement terms for audits.
Common lapses
- Procedures described loosely ("verify sales") so the reader cannot tell what was done.
- Sharing the report with parties who did not agree the procedures.
- Using words such as "audited" or "certified" in the heading or covering mail.
- Omitting that the accountant is not independent when that is the case.
- Adding procedures during the work without agreeing them.
Need help with an agreed-upon procedures engagement?
If a lender, grantor or counterparty wants specific checks on your numbers, the first task is writing the procedures so that everyone reads them the same way. We can help you scope the request and prepare the schedules before the accountant starts; see our compliance advisory services.
Key takeaways
- Agreed-upon procedures lead to factual findings, with no assurance (paragraphs 4 and 5).
- The report is restricted to the parties who agreed the procedures (paragraph 6).
- Independence is not a requirement unless the terms or objective demand it, and a lack of independence must be stated (paragraph 7).
- Terms must cover nature, purpose, information, procedures and distribution (paragraph 9).
- The report must say that it is neither an audit nor a review (paragraphs 17 and 18).
Read next
- Audit, review, agreed-upon procedures and compilation compared
- SRS 4410 (Revised), compilation engagements
- SA 210, agreeing the terms of audit engagements
Disclaimer: Based on the Standards on Auditing, the review, assurance and related services standards, the Compendium of Standards on Internal Audit (as on 1 October 2022) and the Compendium of Forensic Accounting and Investigation Standards (as on September 2025) issued by the Institute of Chartered Accountants of India, in the versions named in the article, as consulted on 4 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org and the Companies Act provisions referred to. This article is general information, not legal advice; check the official text before acting.