Agreed-Upon Procedures

The scope of the AUP is less than that of an audit or review and is, therefore, a more cost-effective alternative to audits and reviews. An AUP engagement could include testing cash, accounts receivable and related chargebacks, investments, inventory, fixed assets, accounts payable and sales. The parties determine the appropriate procedures to be applied. These procedures may include examining documentation, clerical testing, analytical review, cutoff testing, costing methods, confirmations, observations, and reconciliations. Steps in our approach to AUP engagements include:

• Identifying client objectives
• Gaining an understanding of the issues, needs and concerns of the client
• Obtaining an understanding of the operations
• Reviewing prior reports
• Developing a cost-effective agreed-upon procedure plan
• Performing detailed procedures
• Reviewing results with user and management
• Presenting findings at periodic status meetings