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.