Attestation guidance for third-party due-diligence services for asset-backed securities

By Ken Tysiac

A new statement of position issued by the AICPA Auditing Standards Board (ASB) provides practitioners with guidance for performing agreed-upon procedures attestation engagements related to third-party due-diligence services for asset-backed securities.

The guidance is contained in Statement of Position 17-1, Performing Agreed-Upon Procedures Related to Rated Exchange Act Asset-Backed Securities Third-Party Due Diligence Services as Defined by SEC Release No. 34-72936.

The statement of position provides guidance regarding the application of Statements on Standards for Attestation Engagements to agreed-upon procedures attestation engagements related to third-party due-diligence services performed in connection with rated asset-backed securities issued in accordance with the Securities Exchange Act of 1934, as amended. Those services are defined in SEC rules as amended or adopted by SEC Release No. 34-72936, Nationally Recognized Statistical Rating Organizations, and the accompanying text.

The guidance supersedes attestation interpretation No. 1, "Third-Party Due Diligence Services Related to Asset-Backed Securitizations: SEC Release No. 34-72936" of AT-C Section 215, Agreed-Upon Procedures Engagements. The statement of position takes effect for engagements that include covered services accepted subsequent to Dec. 31, 2017. Early application is permitted.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

In focus: Payroll

Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.