Agreed-Upon Procedures
Defined procedures and factual findings over specific financial, donor, contractual, or compliance matters.
Assurance
Organizations, donors, lenders, regulators, project partners, and other stakeholders may require focused professional procedures over specific financial or operational matters. In these situations, an agreed-upon procedures engagement can provide clear reporting on procedures performed and factual findings identified, without providing an audit opinion or an assurance conclusion.
Crowe AHFAD performs agreed-upon procedures engagements with professional discipline, independence in execution, and careful attention to scope, reporting requirements, and intended users. Our work helps clients and stakeholders address specific information needs where defined procedures and factual findings are more appropriate than a full audit or broader assurance engagement.
When This Service Is Relevant
Agreed-upon procedures may be appropriate where users require specific procedures to be performed over defined subject matter, transactions, balances, documents, reports, or compliance requirements.
These engagements may be relevant for:
- Donor-funded projects and grant expenditure reviews.
- Verification of eligible costs, supporting documents, or project expenses.
- Compliance with specific contractual or funding conditions.
- Review of selected transactions, balances, schedules, or reconciliations.
- Procedures over payroll, procurement, advances, assets, or project records.
- Reporting requested by donors, lenders, partners, management, or regulators.
- Transaction support, settlement arrangements, or defined financial information.
- Follow-up on specific concerns where factual findings are required.
The procedures are agreed in advance with the engaging party and, where relevant, the intended users. The resulting report presents the procedures performed and the factual findings arising from those procedures.
Our Approach
Clear scoping from the outset
An agreed-upon procedures engagement depends on a precise scope. Before work begins, we work with the client to define the subject matter, procedures to be performed, information to be examined, reporting format, intended users, and any applicable contractual, regulatory, donor, or professional requirements.
This clarity helps ensure that the engagement is properly understood and that the procedures are aligned with the purpose for which the report is required.
Procedures performed as agreed
Crowe AHFAD performs the procedures agreed in the engagement terms and reports the factual findings arising from those procedures. The nature and extent of work are determined by the agreed scope, not by a general audit or assurance objective.
Our work may include inspection of documents, recalculation, reconciliation, confirmation, comparison of records, inquiry, review of supporting evidence, or other procedures appropriate to the agreed scope.
Factual findings, not an audit opinion
An agreed-upon procedures report does not provide an audit opinion or an assurance conclusion. It reports factual findings based on the procedures performed, allowing intended users to draw their own conclusions from the reported results.
This distinction is important. It protects the clarity of the engagement, ensures users understand the nature of the report, and avoids overstating the level of professional assurance provided.
Key Areas of Focus
Donor and grant-related procedures
For donor-funded projects, agreed-upon procedures may be used to verify selected expenditures, supporting documents, eligibility of costs, compliance with funding agreements, or reporting schedules. These procedures can support donor reporting, project accountability, and compliance with specific grant conditions.
Expenditure and supporting document checks
Organizations may require procedures over selected expenses, invoices, payment records, procurement documents, payroll records, advances, or other supporting documentation. These engagements help users assess whether specific records or transactions align with agreed criteria or documentation requirements.
Specific balances or schedules
Agreed-upon procedures may be applied to selected balances, reconciliations, schedules, receivables, payables, inventory records, fixed assets, or other defined financial information. The scope is tailored to the matter under review and the reporting needs of intended users.
Contractual and partner reporting
Where an agreement requires defined procedures to be performed, an agreed-upon procedures engagement can support contractual reporting, partner reporting, settlement arrangements, financing requirements, or other stakeholder-specific information needs.
Value to Clients and Stakeholders
Agreed-upon procedures engagements provide value where stakeholders need clarity over specific matters without commissioning a full audit or broader assurance engagement. They are focused, proportionate, and designed around defined procedures and reporting needs.
For clients, these engagements help respond to donor, lender, partner, regulator, or management requirements with professionally executed work and clear reporting. For intended users, they provide factual findings that support review, oversight, compliance assessment, or decision-making within the agreed scope.
Agreed-Upon Procedures in the Yemeni Business Environment
In Yemen, many organizations operate under donor agreements, funding arrangements, partnership structures, contractual requirements, or regulatory expectations that require focused professional reporting. Agreed-upon procedures can be particularly useful where stakeholders require verification of specific expenditures, documents, balances, or compliance matters.
Crowe AHFAD understands the practical reporting needs of organizations, donors, and stakeholders operating in Yemen. Our approach combines professional rigor with awareness of local documentation practices, operating constraints, and stakeholder expectations.
Our Professional Commitment
Crowe AHFAD performs agreed-upon procedures engagements with due professional care, confidentiality, and disciplined execution. We focus on defining the engagement clearly, performing the agreed procedures consistently, and reporting factual findings in a clear and balanced manner, without extending the report beyond its intended purpose or agreed scope.