Agreed-Upon Procedures

Agreed-Upon Procedures (AUP) is an engagement where an auditor is asked to carry out specific tasks or tests on financial or non-financial data based on the agreement made with the client or another party. Unlike an audit or review, the auditor does not provide a formal opinion but instead reports the factual outcomes of the agreed procedures. This process is typically used to address specific concerns or verify certain information as requested by the parties involved, making it a highly focused and tailored engagement.

The auditor is not required to perform a full examination but only the specific procedures stipulated in the agreement. These procedures could range from simple reconciliations to more detailed checks and verifications, depending on the needs of the client or the third party. The resulting report only presents the findings without offering any assurance or conclusion, making it distinct from other types of audits.

Purpose Of Agreed-Upon Procedures

The primary purpose of an agreed-upon procedures engagement is to provide a client or third party with specific information that is needed to make informed decisions. These procedures can be focused on a particular area, such as verifying financial transactions, reviewing contract compliance, or confirming inventory levels.

Scope Of Agreed-Upon Procedures

The scope is defined entirely by the client or the third party, which means the auditor's involvement is limited to performing the specified tasks. These engagements do not cover broader aspects of financial health or internal controls.

Key Benefits Of Agreed-Upon Procedures

AUP engagements allow for a focused examination of specific areas of concern.

Since the auditor does not issue an opinion, the engagement is usually less costly and quicker than a full audit.

The client or third party receives a clear report of the factual findings, which can support decision-making.

Applicability For Agreed-Upon Procedures

Agreed-Upon Procedures (AUP) are often used to address client-specific needs when a client requires specific information without the need for a full audit. These procedures may also be mandated by regulatory bodies to verify compliance with particular standards. Additionally, AUPs are commonly utilized during business transactions such as mergers and acquisitions, where they help verify the accuracy of data related to the transaction, ensuring that both parties have a clear understanding of the financial or operational details.

Choose Lexprosoft for Your Agreed-Upon Procedures !

At Lexprosoft, we provide tailored Agreed-Upon Procedures (AUP) services designed to meet your specific needs. Whether you require a focused examination of financial data, regulatory compliance verification, or transaction-related verifications, our team of experts ensures that the agreed procedures are executed with precision and transparency. We work closely with you to understand your requirements and provide a clear, factual report of our findings, offering you the confidence and insights needed for informed decision-making. Trust Lexprosoft to deliver efficient and reliable AUP services that align with your business objectives.