Agreed Upon Procedures

Description of Purposes and Deliveries of the service ?

The primary purpose of the service is to provide the clients with reports on factual findings basing on the procedures agreed by the clients. As the auditor provides a report of the factual findings of agreed-upon procedures, no assurance is expressed in the report. Instead, users of the report assess for themselves the procedures and findings reported by the auditor and draw their conclusions from the auditor's work.

Agreed-upon procedures ("AUP") may be used in buying or selling a business, verifying cash balances, checking security balances, checking income tax provisions, reviewing internal control and environmental management systems...

Who are clients of the service?

There is a wide range of users that use reports of factual findings for a variety of reasons. For many entities, AUP engagements increase accountability around financial information, and for smaller entities, due to some limitation of audit exemption, AUP becomes a useful alternative to the audit.

 How is the service delivered?

The service is delivered through the following steps:

  1. Kick-off discussion: we make it clear and agreed with clients about specific procedures, objectives, financial information to which the agreed-upon procedures will be applied, schedules, cooperation mechanisms, strategy, responsibilities of each party, the form of the reports, limitation, and restriction of the report. This step can be done through email and/or direct discussion.
  2. Planning (at our office): we obtain a comprehensive understanding of clients' business environment and related internal control systems to determine the most effective and efficient approach and resources for the clients.
  3. Fieldwork (at clients’ offices): we perform the procedures agreed upon basing on the planning work, including: (1) inquiry of management and other involved personnel; (2) analysis and reconciliation of data; (3) computation, comparison and other clerical accuracy checks; (4) observation of related performance and controls; (5) obtaining confirmations from internal and external parties and individuals.
  4. Reporting: we prepare, send, and explain draft reports of factual findings to clients, then print & issue the final reports. Direct meetings will follow, if required, to present the reports in detail.

While processing the work, we always try to apply proper technology and tools to our work to increase automation and efficiency. We believe that technology application will help to improve report quality, deadline commitment, confidentiality, and cost saving.

How long does the service take?

It depends very much on the scope of work and responses & cooperation from the client and the target.

As the nature of the business, the Financial Due Diligence is comparably short.  We usually manage to finish the service within 2-3 weeks in most cases. For urgent circumstances, we may apply special processes and resources together with active cooperation from the client and the target.

Contact us

We provide services to enterprises across Vietnam. Should you want a meeting set-up, quotation, proposal or feedback