An agreed-upon procedures engagement is a service in which a CPA is to report findings based on specific procedures agreed upon beforehand. The procedures are agreed upon in advance and can encompass a wide variety of topics. Some examples of such AUP engagements that our firm often performs are: Anti-Money Laundering Program compliance, Directors’ Examinations in conformity with Title 45 Chapter 25 of the Nebraska Administrative Code, compliance with FINRA policies and regulations on conflicts of interest, cost allocation studies, and testing for accuracy of expenses.

The procedures are determined by your organization and may be as limited or as extensive as desired but should not include procedures that are open to varying interpretations. One of the benefits of engaging a CPA to perform such work is that the findings are independently derived with no bias. There is flexibility in the nature, timing, and extent of the AUP and the work can be tailormade to fit your needs. You know your organization and can direct a CPA to perform procedures in a certain area—perhaps an area of concern, a new activity, or just a closer look at something. It is also important to note that in an AUP engagement, the CPA does not provide an opinion or a conclusion.  Instead, the CPA provides a report listing the findings resulting from the procedures that are agreed-upon.