A funder, lender or agency does not need a full audit. They need specific items checked by an independent CPA. Agreed upon procedures give them exactly that: a defined set of tests, performed independently, with factual findings reported back so they can draw their own conclusions.
In an agreed-upon procedures (AUP) engagement, you and the specified users of the report agree on the procedures to be performed. We perform them and report what we found. We do not give an opinion or conclusion. The users decide what the findings mean for their purposes.
The engagement is performed under the AICPA attestation standards. Because the procedures are agreed in advance, the scope can be narrow and focused. That often makes an AUP faster and less costly than an audit or review, as long as the reader accepts this type of report.
Clear procedures matter. A procedure such as “compare each selected invoice amount to the general ledger” produces a factual finding. A procedure such as “determine whether costs are reasonable” calls for judgment and does not belong in an AUP. We help word procedures so the findings are useful to the people reading them.
Organizations whose funder, lender, agency or partner wants specific matters checked, rather than a full set of financial statements audited.
We agree the subject matter and procedures with you and the users.
The engagement letter lists each procedure and the reporting deadline.
We carry out each procedure exactly as agreed and document the results.
You receive a report of factual findings for the specified users.
A good AUP starts with well-written procedures. We help you and the users agree on procedures that are clear and testable, so the report answers the question they are asking. We keep the scope tight, which keeps the cost and timeline down.
If the reader later needs more assurance, we can explain how a review or audit or a compliance audit would differ.
No. An AUP report lists the procedures performed and the factual findings, for example that 25 selected invoices were compared to the general ledger and no differences were found. It does not give an opinion or conclusion about whether things are right overall. That is the point: the users get exactly the facts they asked for and decide for themselves what those facts mean.
You and the specified users of the report agree on them. Often the funder, lender or agency already has a list. If not, we help draft procedures that are clear and testable. The users must accept that the procedures fit their needs, which keeps everyone aligned and avoids a report that answers the wrong question.
The report is written for the parties who agreed to the procedures, and depending on the engagement its use may be restricted to them. If you expect to share it more widely, for example with a second funder or your board, tell us at the start so we can address it in the engagement letter.
Usually less than an audit, because the scope is narrow. Time depends on the number of procedures, sample sizes and how quickly records can be produced. Once the procedures are agreed, we give you a firm timeline and a written fee quote. Clear procedures and organized records keep both down.
When the reader wants an opinion. If your lender needs comfort on the financial statements as a whole, or a grantor requires a compliance audit, an AUP will not satisfy them. In those cases a review or audit or a compliance audit is the better fit, and we will tell you so before you spend money on the wrong engagement.
Send us the request from your funder, lender or agency. We will help define the procedures and quote the work.
When a lender, funder, board or agency needs to rely on your numbers, we give them an independent answer they can trust. Financial statement audits and reviews, nonprofit audits, Single Audits, Yellow Book audits, agreed-upon procedures and 401(k) plan audits, each scoped to the requirement in front of you.
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