Agreed Upon Procedures

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  • #194285
    Anonymous
    Inactive

    Can someone provide a few examples of agreed upon procedures and what the “report of findings” would include? Im a little confused as to why you would be engaged to do something for a client but not express any assurance regarding your report of findings.

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  • #667399
    More_Coffee
    Participant

    I work as an auditor at a regional CPA firm and have worked on a few AUPs. Usually it's something that the client wants us to look at that we wouldn't normally test during an audit; or they're a small client that doesn't need an annual audit but still wants us to do a little bit of testing over certain areas that they might be concerned about.

    For example, I was working on one for a school district last week where we tested the P-card expenditures of their Board members to make sure they were reasonable and within the district's policies. We do their annual audit as well, but they wanted us to look at specific things for specific people. I've also seen clients that want us to do some testing over their bank recs to see that procedures are being performed properly; or a payroll certification… things like that. Not your normal audit procedures. It has seemed to turn into a little bit of consulting at times too when they want to learn how to do their procedures more efficiently or how they can save more money, etc.

    Like you said, we don't express any assurance… we don't have a “materiality” for the AUP, and we just talk to them about our findings after the testing is completed. Hope this helps 🙂

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    #667400
    Anonymous
    Inactive

    @ more_coffee thank your for your reply this definitely helps! It seems like agreed upon procedures are more like a consulting engagement (even though SSARS apply). Audit is one of those topics that is sometimes hard to wrap your head around without any real world experience.

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