Agreed-Upon Procedures Engagements
In an agreed-upon procedures engagement a CPA is engaged by a client to issue a report of findings that are independently derived based on the performance of specific procedures. A client engages a firm to assist them in evaluating a specific area of interest or an assertion as a result of a need or needs of specified parties. Because the needs of clients may vary, the nature, timing and extent of the agreed-upon procedures may vary as well. Consequently, the specified parties assume responsibility for the sufficiency of the procedures as they best understand their own needs.
This type of engagement is different from an examination or a review and it does not provide an opinion or negative assurance. Instead, an agreed-upon procedures engagement results in a report that discusses the specific procedures performed and applicable findings and its use is generally restricted to specified parties.