An agreed-upon procedures engagement is an engagement in which an auditor is engaged to carry out those 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. The recipients of the report form their own conclusions from the report by the auditor.
The report is restricted to those parties that have agreed to the procedures to be performed since others, unaware of the reasons for the procedures may misinterpret the results. For example, an agreed-upon procedures engagement may be commissioned by an entity which is acquiring another business. The entity may engage an audit to report on specific aspects of the business that it is buying.
Agreed-upon procedures can also enhance the credibility of the information provided to third parties, such as banks, regulatory agencies, prospective investors or prospective purchasers.
We provide specialized financial reporting in a variety of situations where your company desires independently verified and reported information, such as inspection of documents or transactions for specific characteristics, confirmation of specific information with third parties, or comparison of data to a defined standard. Many situations are appropriate for agreed-upon procedures, whether the objective is to provide specific information and negative assurance to users within your company or to third parties.