Agreed Upon Procedures (AUP) is a type of engagement in which an independent auditor performs specific procedures agreed upon with the client. These procedures are designed to meet the client’s particular needs and are tailored to address specific areas of concern.

An agreed-upon procedures engagement is one in which a practitioner is engaged by a client to issue a report of findings based on specific procedures performed on subject matter. Instead of an audit on a specific matter or information, the parties request an Agreed-Upon Procedures Engagement to have findings to specific questions or discussions or to verify a specific area of concern. For instance, an entity may be acquisition process (i.e., mergers and acquisitions) and request for an Agreed-Upon Procedures Engagements to verify the financial position and performance of its potential sellers.

Agreed-Upon Procedures Engagements requires the independent auditor to implement the procedures agreed between the parties and to report the results in an objective manner. The auditor reviews financial data, documents or other information by following certain identified procedures. The objectives and procedures are intended to assist the practitioner in understanding what needs to be accomplished in an agreed-upon procedures engagement.

Agreed-Upon Procedures Engagements provides limited assurance to the parties. The auditor provides both parties with a report on the performance of certain procedures. However, Agreed-Upon Procedures Engagements is not an assurance engagement. Accordingly, Agreed-Upon Procedures Engagements does not provide reasonable assurance and we do not express an opinion or an assurance conclusion.

Agreed-Upon Procedures Engagements is a key instrument to achieve transparency and provide information between parties. The parties can use the results of the Agreed Upon Procedures while making decisions based on confidential information about a specific area of concern. This audit provides a faster and more economical audit process with limited resources faster and from the work performed by the practitioner.

Consequently, an agreed-upon procedures engagement is an attestation engagement in which a practitioner and performs specific procedures on subject matter and reports the findings without providing an opinion or conclusion. It is the engagement carried out by applying the predetermined procedures between the parties and reporting the results and findings. This audit provides limited assurance and are selected in a manner intended to bias the intended users’ decision-making by providing information to the both parties.