An agreed-upon procedure is a standard a company or client outlines when it hires an external party to perform an audit on a specific test or business process. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.
What are examples of agreed upon procedures?
Examples of AUP engagements, both on financial and non-financial information, include:
- Due diligence when buying or selling a business.
- Verifying cash balances.
- Checking security balances.
- Income tax provisions.
- Accounts receivable/payable processes.
- Special reviews of loan portfolios.
What are agreed upon procedures engagement?
Agreed-upon procedures engagement: In an agreed-upon procedures engagement, a practitioner performs specific procedures on financial or nonfinancial subject matter or an assertion and reports the findings without providing an opinion or a conclusion. Findings are the factual results of the procedures performed.
