What is an agreed-upon procedures engagement?
An agreed-upon procedures engagement applies specified procedures to identified information and reports the resulting findings. It does not provide an audit opinion or an assurance conclusion. Intended users assess the findings for their own purposes. Start with the actual request rather than assuming an accountant’s signature establishes a particular level of assurance.
Begin with the recipient’s requirement
Tell us who requested the report, why it is needed, the information concerned and whether a prescribed form, standard or practitioner qualification applies. A grant offer letter, lender instruction or contractual requirement can change the appropriate engagement. If an audit or assurance opinion is required, an AUP report is not an interchangeable substitute.
Make the procedures specific
A useful procedure states the population, records, selection approach and comparison to perform. Agree how differences will be recorded. Vague requests to check or certify everything do not establish a workable set of procedures. The nature, timing, extent and reporting format need sufficient detail for the intended use.
Scope, suitability and fee
Explain the reporting deadline and the records available. Acceptance, relevant independence requirements, intended users and reporting terms are considered before work starts. We discuss a proportionate scope and fee. No universal third-party acceptance or funding result is promised.
Illustrative procedure and factual finding
| Element | Hypothetical example |
|---|---|
| Information | Ten specified invoices included in a cost schedule |
| Procedure | Compare each invoice amount with the schedule and identified payment evidence |
| Finding | Nine amounts matched; one differed by £120, with the document reference recorded |
This example demonstrates specificity only. It is not a recommended sample, a finding about a real client, a conclusion on eligibility or evidence that the whole claim is accurate.
Prepare for a useful first discussion
Have the recipient’s instructions, draft schedule, supporting record list, reporting period and deadline ready. Identify missing items and any specified professional standard. Send only the outline through the enquiry form; agree an appropriate channel for confidential evidence.
Related support includes grant financial information, management accounts and lender information packs.