An agreed-upon procedures engagement performs specific checks agreed in advance and reports the factual results. Intended users evaluate those findings themselves. The engagement provides no audit opinion or assurance conclusion.
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A lender, investor, board or grant funder may ask for checks against a defined schedule or evidence requirement. Confirm the intended users, reporting deadline and prescribed wording first. Some recipients require a different form of reporting or specify practitioner eligibility, independence or exact procedures.
| Subject | Example agreed procedure | Example finding |
|---|---|---|
| Grant expenditure | Compare 20 selected costs on a schedule to supplier invoices and payment records. | For 19 items, the amounts agreed. One invoice was £120 lower than the amount listed. |
| Revenue schedule | Compare selected entries to invoices and trace receipts to bank statements where the brief requires it. | Two selected invoices had no matching receipt in the agreed review period. |
| Lender reporting | Recalculate a specified ratio using the agreed facility definition and specified source figures. | The recalculated ratio was 1.42×. The submitted schedule showed 1.47×. |
The sample, period and procedure wording determine what the findings cover. A result from a selected sample applies to the work described in the report.
ISRS 4400 (Revised) sets requirements for agreed-upon procedures engagements. If the recipient specifies this standard or another reporting framework, send their instructions when enquiring so we can confirm the applicable requirements and whether the engagement can be accepted.
A request to “check the grant costs” leaves too much open. A procedure could specify the cost schedule version, selection method, invoice fields to compare and bank evidence to inspect. Agree whether to record date differences, amount differences, missing records or all three. Check the proposed wording with the recipient when it has prescribed requirements.
| Procedure agreed in advance | Factual finding |
|---|---|
| For 15 selected items, compare the supplier and amount in the grant schedule with the invoice. | Supplier and amount agreed for 14 items. The schedule listed £1,280 for one item and the invoice showed £1,160, a £120 difference. |
| For the same items, compare the payment date with the date shown on the specified bank statement. | A payment date was identified for 14 items. One bank statement was unavailable for the period specified. |
The report describes the work and its factual results. Intended users interpret those results in light of the scope, the selection and any missing evidence. Agree the intended distribution before the work begins.
Tell us who prepared the records and what services each provider already performs. We can assess the applicable ethical and independence requirements, any conflicts and the recipient’s conditions before accepting an engagement. See the IAASB standard and supporting material.
A statutory audit and an AUP engagement serve different purposes. An AUP report records factual findings from agreed procedures. If the recipient requires an audit opinion or assurance conclusion, ask them to confirm the required engagement.
The practitioner and engaging party agree the procedure wording and relevant scope. Check any funder or recipient instructions before work starts.
The number and complexity of procedures, sample size, access to evidence and reporting deadline affect scope. The proposal confirms the fee, timetable and deliverable.
See our accountancy services for growing companies for ongoing finance support or year-end accounts and audit preparation for annual reporting preparation.
Tell us the intended users, reporting deadline, period and type of records available. Mention any required report wording, practitioner eligibility or independence requirements. We can then discuss the procedures and whether the engagement can be accepted.
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