Agreed-Upon Procedures


If your organization has a reporting need outside the scope of an audit, review, or compilation, an agreed-upon procedures engagement (AUP) may be an effective alternative.

An AUP engagement is typically performed when the specified parties can agree upon the procedures needed to meet their needs, and those parties do not require the expression of an opinion or any other form of assurance on the subject matter or financial statements. Examples might include procedures to test the existence or quality of loan collateral, due diligence procedures for a potential acquisition, or calculation of return statistics on an investment.

An AUP engagement is performed in accordance with attestation standards (SSAE) established by the AICPA. In an AUP engagement, the parties agree upon the specific procedures to be performed by the accountant, and the accountant report back on the results of theses procedures. The sufficiency of the procedures is solely the responsibility of the parties specified in the report, and the accountant makes no representation regarding the sufficiency of the procedures for purpose of the report or for any other purpose. Agreed-upon procedures do not constitute an examination under SSAE and no opinion is expressed on the subject manner.