Agreed Upon Procedures

An agreed-upon procedures engagement involves carrying out procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings.

Such procedures are potentially broad ranging and can be undertaken in any area where the client and the user consider it to be beneficial to carry out audit procedures in relation to a matter causing concern and report thereon. Areas could include providing an assurance that the accounts payable schedule is accurate or an inventory valuation has been carried out using correct rates that tie up to purchase costs. Reports prepared would not express an opinion but list out the procedures carried out and the factual findings.