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Agreed-Upon Procedures

An agreed-upon procedures engagement is one in which a licensed CPA firm is engaged by a client to issue a report of findings based on specific procedures performed on specified subject matter. The “Agreed-Upon Procedures Engagements”, as may be amended from time to time, is promulgated by the American Institute of Certified Public Accountants (AICPA) and the contemporaneous version is available for review on the AICPA website located at www.aicpa.org.

As a licensed CPA firm, SAS 70 Solutions assists clients by evaluating specific subject matter, or an assertion, as a result of a need of specified parties, which is typically comprised of the client and interested third parties such as their customers or lenders. Because the specified parties require that findings be independently derived, the services of an external CPA firm are obtained to perform “agreed-upon” procedures and report the findings. The specified parties’ needs may vary widely. As such, the specified subject matter, as well as the nature, timing, and extent of the agreed-upon procedures reviews vary widely between engagements. The specified parties are responsible for the sufficiency of the procedures since they best understand their own needs.

Following an agreed-upon procedures review, SAS 70 Solutions issues an “Independent Accountant’s Report on Applying Agreed-Upon Procedures”. Similar to a financial statement audit or SAS 70 audit opinion letter, this report includes standardized language required by the professional guidance. In addition, the report includes the specific procedures performed by SAS 70 Solutions and the results of those procedures.

Deliverables

The primary deliverables of our agreed-upon procedures reviews include:

  • Detailed project plan for the audit
  • Comprehensive information request list allowing the organization’s personnel to gather documentation in advance of fieldwork
  • The independent auditor’s report delivered in two hardcopy formats
  • The independent auditor’s report delivered in secured PDF format
Who Should Consider an Agreed-Upon Procedures Review?

The following are characteristics of the ideal candidate for agreed-upon procedures review services:

  • The organization conducts business with one or more third parties that require specific procedures to be performed by an independent third party related to specific subject matter. This subject matter, and the related procedures, must be well-defined and are normally relatively limited in scope.
  • The organization requires independent third party verification regarding specific subject matter that is too narrow to be considered for a SAS 70 audit.
  • The organization’s interested third parties have agreed that an agreed-upon procedures report is acceptable for their purposes.
  • The organization’s reputation largely depends on its ability to keep information accurate, secure, private or confidential.
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