An Agreed-Upon Procedures (AUP) engagement is a type of attestation service where an independent auditor performs specific procedures, agreed upon in advance with the client, on a particular subject matter. The auditor then reports the factual findings without providing an opinion or assurance. ​

Unlike a traditional audit, which provides an overall opinion on financial statements, an AUP focuses on specific areas or procedures requested by the client. The auditor reports only on the findings of these procedures without offering any conclusions or opinions.

AUP engagements are suitable when a business requires verification of specific information or processes, such as compliance with contract terms, internal control evaluations, or due diligence in mergers and acquisitions. They are particularly useful when full audits are unnecessary or cost-prohibitive.

Examples include verifying specific transactions, testing compliance with regulatory requirements, reviewing internal controls, or confirming account balances. The exact procedures are tailored to the client's needs and agreed upon before the engagement begins.

The AUP report is intended for the specific parties who agreed upon the procedures, such as management, regulators, or potential investors. It is not typically distributed to a broader audience since it doesn't provide general assurance.

Yes, one of the key advantages of AUP engagements is their flexibility. Clients can work with auditors to design procedures that address their specific concerns or areas of interest.

Yes, AUP engagements are conducted in accordance with established standards, such as the AICPA's Statement on Standards for Attestation Engagements (SSAE) No. 18, which outlines the requirements and guidance for such services.

The auditor provides a report detailing the procedures performed and the factual findings. The report does not include opinions, conclusions, or assurances, allowing the intended users to draw their own conclusions based on the findings.