Agreed-Upon Procedures (AUP)
An agreed-upon procedures (AUP) engagement is an attestation engagement where the client and a third party agree to have an auditor perform specific procedures that the parties agree upon in advance. The auditor does not provide an opinion, which is one aspect that differentiates it from an audit. The auditor only reports the factual findings based on the results of performing the agreed-upon procedures, allowing the parties to draw their own conclusions on the subject matter.
AUP engagements may focus on specific financial or non-financial data. A few examples include performing procedures on numeric information, debt agreements, internal controls and leases and royalty agreements.
An AUP engagement can be a good solution when a third party needs to obtain comfort over the numeric information, compliance with agreements and internal controls.
Consult with our experienced auditors at Reynolds + Rowella to assist you with designing appropriate procedures and to determine if an AUP engagement is the right solution for you and your Fairfield County, CT business