Guide to Agreed Upon Procedures

by

Picture of Maria Burcher

Maria Burcher

Chartered Accountant

Due Diligence Accountant

What are “Agreed Upon Procedures” and can they be useful for your business, community organisation or body corporate?

What are Agreed Upon Procedures?

Agreed Upon Procedures (AUPs) are a type of an engagement where a practitioner is hired to test and report on a specific question of fact. Unlike an audit or a review, the practitioner reports only factual findings and does not offer opinions, conclusions or assurances. You are involved in the development of the procedures to be carried out. AUPs are much more focussed than an audit so you get (and pay for) exactly what you’ve asked for and no more.

When should you use Agreed Upon Procedures?

There are many scenarios when AUPs can provide value to your business, for example:

  • Due diligence when purchasing a business
  • Absentee owner looking to gain comfort the money is being spent appropriately
  • Spot checking calculations or processes performed by a sole charge bookkeeper
  • Review tax provisions
  • Payroll audits, for example, agreeing pay to contracts and timesheets or checking compliance with the IRD filing requirements
  • Compliance with grant or funding terms

Who can carry out an Agreed Upon Procedures engagement?

In New Zealand AUPs are carried out by a Chartered Accountant (such as The Accounting Hub) who is required to comply with ISRS NZ 4400 Agreed Upon Procedures, which sets out the practitioner’s responsibilities when engaged to perform an agreed-upon procedures engagement, and the form and content of the agreed-upon procedures report.

How we can help

The Accounting Hub is experienced in performing AUPs and can help to define and carry out an appropriate and efficient AUP to meet the needs of your business.

Please get in touch if you’d like to know more.

Related Posts

Contractors vs employees: Key considerations and calculations

With the news in the Budget 2025 that KiwiSaver employer contribution rates are to be increased to 4% from 1 April 2026, it’s worthwhile considering how this impacts an equivalent salary calculation for comparing employees with contractors. While contractors can offer flexibility, [read more...]

Contracting vs. company structure for IT professionals

If you’re operating as a sole trader in the IT industry, one of the key decisions you’ll face is whether to set yourself up as a contractor or through a company structure. Both options offer distinct benefits, depending on your [read more...]

Upcoming changes to tax rules for not-for-profits – have your say

The IRD has released a consultation document examining the tax treatment of the not-for-profit sector in New Zealand. This review could lead to significant changes in how not-for-profits are taxed, particularly those operating businesses. If you’re involved in a charity, [read more...]