Audit & Assurance

Agreed-Upon Procedures

Agreed-upon procedures, often called AUP, is an engagement where the accountant performs specific procedures and reports factual findings without giving assurance.

Quick answer

Agreed-upon procedures, often called AUP, is an engagement where the accountant performs specific procedures and reports factual findings without giving assurance.

It matters because some lenders, buyers, or counterparties want targeted testing rather than a full audit or review.

A buyer may ask for agreed-upon procedures on revenue or inventory before closing a transaction.

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Plain-English Definition

What Agreed-Upon Procedures means

Agreed-upon procedures, often called AUP, is an engagement where the accountant performs specific procedures and reports factual findings without giving assurance.

Why it matters It matters because some lenders, buyers, or counterparties want targeted testing rather than a full audit or review.
Simple example A buyer may ask for agreed-upon procedures on revenue or inventory before closing a transaction.
Related Questions

Questions people ask about Agreed-Upon Procedures

What does Agreed-Upon Procedures mean?

Agreed-upon procedures, often called AUP, is an engagement where the accountant performs specific procedures and reports factual findings without giving assurance.

Why does Agreed-Upon Procedures matter?

It matters because some lenders, buyers, or counterparties want targeted testing rather than a full audit or review.

What is a simple example of Agreed-Upon Procedures?

A buyer may ask for agreed-upon procedures on revenue or inventory before closing a transaction.

When should I ask a CPA about Agreed-Upon Procedures?

Ask a CPA when the term affects lender requests, financial statement work, compliance needs, or an IRS or regulator issue.

How is Agreed-Upon Procedures different from Audit?

Agreed-Upon Procedures means Agreed-upon procedures, often called AUP, is an engagement where the accountant performs specific procedures and reports factual findings without giving assurance. Audit means An audit is the highest level of financial statement assurance provided by an independent CPA firm. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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