AUP Engagements


AUP engagements have the potential to be much more focussed than audit or compliance assurance work.

Based on APS-1 (revised) - Agreed-Upon Procedures Engagements to Report Factual Findings issued by the NZICA. Internationally there is the IAASB’s ISRS 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information

Factual findings exclude all concepts of risk assessment, materiality, expressing an opinion and extended testing. They are radically different from risk based auditing. The client is assured that they are getting exactly what they ask for and no more. So potentially there should be a large market for this kind of work.

 There are two options: one where the AUP is likely to be an annual job, and the other where is it is a one-off job. In the second case the date entered on setup is the "appointment date" rather than "year ending". Otherwise the two are identical, and of course may be swapped over if the nature of the engagement changes.

The practitioner is asked to verify a question of fact, and their work simply answers that question. This is especially useful to verify to funders that their money has been spent as specified - for much less cost and effort than an audit or review engagement. Other examples might be:

  • Due diligence when buying or selling a business
  • Verifying cash balances
  • Checking security balances
  • Income tax provisions
  • Accounts receivable/payable processes
  • Special reviews of loan portfolios
  • Reviews of internal control and environmental management systems
  • Royalty agreements compliance
  • Employer compliance/payroll audits
  • Purchasing department compliance

Our templates include an engagement letter, report, and a range of confirmation letters and work-papers to fit many common agreed-upon procedures.

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