Overview

An Agreed-Upon-Procedures (AUP) engagement is one in which a licensed CPA firm is engaged by a client to issue a report of findings based on specific procedures performed on a specific subject matter. The user takes responsibility for the adequacy of the procedures. In an AUP engagement, the accountant does not express an opinion or negative assurance. Instead, the report should be in the form of procedures and findings.

Because the clients require that findings be independently derived, the services of a licensed CPA firm are obtained to perform procedures and report the findings. The specified parties and the licensed CPA firm agree upon the procedures to be performed based on what all parties believe are appropriate. Because the needs of the specified parties may vary widely, the nature, timing, and extent of the AUP may vary as well; consequently, the specified parties assume responsibility for the sufficiency of the procedures since they best understand their own needs. The licensed CPA firm’s report on AUP should be in the form of procedures and findings.

 

Our Approach

We have performed AUP engagements for a wide variety of subject matters across numerous industries. Because AUP engagements are targeted to meet the risks identified by specified parties, clients pay for the services and limit the scope of the engagement, thus reducing fees. Instead of performing a full blown financial statement audit or review of internal controls across a wide variety of control objectives, we target our testing procedures to those areas of the financial statements or internal controls the specified parties are interested in reviewing.

Our report will not result in an opinion, but will be a detailed account of the exact procedures we performed and the specific results of those procedures. For example, management may be worried about the company’s payroll practices, rates of return on various investments, or accounts receivable and days sales outstanding practices. Upon performing the procedures for each of these subject matters, we would generate a detailed report about the Payroll Department procedures and its attention to detail, verify if the resultant rate of return agrees with the percentages in the identified schedules and trace if the accounts receivables procedures in relation to days sales outstanding.

Our team will work directly with the specified parties to ensure the engagement is performed in accordance with the needs and desires of all parties. We provide clearly written results of each procedure of the engagement. This ensures the engagement runs smoothly with minimal impact to your daily operations.

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