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.

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