Sometimes business entities may not require a full audit to assess specific performance issues. An agreed-upon procedures engagement can provide business entities with the targeted information they need to understand the current conditions and forecast what’s coming. The engagement tailored to your specific needs.
An agreed-upon procedures engagement is an engagement in which an auditor is engaged to carry out those procedures of an audit nature about financial information or operational processes 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 scope of services is more focused than a full audit of financial statements, work is performed only in required areas, saving time and lowering costs.
Agreed-upon procedures may be appropriate in a variety of situations where your company desires independently verified and reported information, such as certain tests on accounts payable, accounts receivables, purchases, sales, 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 to users within your company or to third parties, such as banks, regulatory agencies, investors, or prospective purchasers.
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.
You will benefit from:
- Clearly written results of each agreed-upon procedure of the engagement
- Personal contact with the engagement leader
- A team with experience in your industry
Our professionals can help you determine when independently applied agreed-upon procedures are the answer to your business need.
We would be delighted to discuss how we can help you, and your group or company. Please get in touch and contact MHSS at [email protected] or alternatively, contact our office directly.