Agreed Upon Procedures

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Agreed Upon Procedures

Often, clients encounter complex transactions that necessitate a certain level of reassurance before making significant decisions, where traditional audit or formal assurance reporting may not be the most suitable approach. In such situations, an "agreed upon procedures" (AUP) engagement proves to be a valuable solution. Our team of experts is dedicated to delivering factual findings on financial or other information according to the client's specifications. This engagement involves an independent reviewer executing specific procedures that have been mutually agreed upon with the client. These procedures are customized to meet the client's specific needs and address particular areas of concern. Agreed upon procedures can be applied to various processes, including sales, purchases, accounts receivable, and stock-taking procedures. Our team of meticulous practitioners at Accountpreneurs can assist in tailoring an AUP engagement to swiftly and effectively address issues within your organization, shedding light on problems and identifying areas for improvement. Our team can provide AUPs in the following areas:
  • Due diligence
  • Fraud analysis
  • Any Client specifications

FAQ

An agreed-upon procedures (AUP) engagement is appropriate in several scenarios. Here are some
situations where an AUP engagement may be appropriate:

Customized Reporting Needs: When a client requires a tailored examination of specific financial
information or transactions, such as compliance with contractual agreements, regulatory
requirements, or internal policies.

Third-Party Assurance: When stakeholders, such as lenders, investors, or regulatory bodies, request
assurance on specific aspects of financial information but do not require a full audit or review
engagement.

Transaction Due Diligence: During mergers, acquisitions, or other business transactions, parties may
engage in AUP engagements to examine specific financial aspects, such as the accuracy of financial
statements, the validity of financial projections, or compliance with transaction agreements.
Regulatory Compliance: In industries with specific regulatory requirements, companies may engage
in AUP engagements to ensure compliance with industry standards or regulations without the need
for a full audit.

Fraud Investigations: When there are suspicions of fraud or financial irregularities, organizations
may engage in AUP engagements to investigate specific transactions, accounts, or processes for
potential fraud indicators.

Internal Control Assessments: Companies may engage in AUP engagements to assess the
effectiveness of specific internal controls over financial reporting, such as segregation of duties,
authorization procedures, or access controls.

Special Purpose Reports: In cases where stakeholders require a report containing factual findings
based on specific procedures agreed upon by all parties involved, such as verifying the accuracy of
sales figures or compliance with loan covenants.

Litigation Support: During legal disputes or litigation proceedings, parties may engage in AUP
engagements to examine specific financial information or transactions for use as evidence in legal
proceedings.

Compliance with Grant Requirements: Organizations receiving grants or funding from governmental
or non-governmental entities may engage in AUP engagements to ensure compliance with grant
requirements and reporting obligations.

Risk Assessment: Companies may engage in AUP engagements to identify and assess specific
financial risks, such as credit risk, liquidity risk, or operational risk, to inform risk management
strategies.