Agreed upon procedures focus on what you specifically want to look at. It is an engagement between your company and an accountant to issue a report of findings on specific procedures. Based upon the company’s direction, the procedures to be used are agreed upon in advance, hence the name “agreed upon procedures.”

Because this is not a full financial statement audit, you will decide on the type and extent of the procedures to be performed. Although the auditor’s report does not express an opinion on the findings, it does provide a very detailed accounting of the procedures used to prepare the report. This can result in better accounting practices at your company.

How We Deliver

You should consider hiring an auditor to do agreed upon procedures if you have concerns about specific financial or operational aspectsof your company.  Our professionals will determine the scope of your project, audit your existing practice and create a recommendation based upon an agreed upon outcome and best industry practices.

How You’ll Benefit

• Obtaining loans: A bank may need assurances on receivables and inventory that serve as collateral for a loan. Your auditor can perform agreed upon procedures on those specific financial statement elements. The report generated as a result could be more helpful to the banker and less costly to you.
• Staying compliant: If you work for a government or nonprofit agency through agreed upon procedures your agency can focus on specific regulatory requirements to determine the agency’s compliance.
• Winning contracts: If you are a Government contractor, the awarding agency may require a CPA perform agreed upon procedures on your indirect costs for a specific time frame to determine if the rates and cost principles used are in compliance with current regulations. The auditor’s findings will help you develop a comprehensive indirect cost allocation plan and a job cost accounting system – both critical to winning and keeping Government contracts.