Agreed Upon Procedures

From time to time, a company may need to undergo agreed-upon procedures (AUP) to obtain independent verification of specific financial or operational information. AUPs are targeted, offering lenders, investors, and regulators the opportunity to gain insight into the specific areas. This can include confirming inventory balances, complying with loan covenants, or reviewing royalty calculations. In the case of a merger or acquisition, a potential buyer may rely on an AUP to confirm revenue recognition, expense classifications, or liabilities. This approach is highly valued because it provides insight into operations without the need for a time-consuming and costly audit.

When a full audit isn’t required, but confidence is…

Let's Talk

How JLK Rosenberger Can Help

JLK Rosenberger provides AUP services to numerous companies, investors, and other entities. Our clear and transparent process allows us to immediately understand the objectives of the engagement and design procedures that target essential areas. The steps in our process include:

Pre-Engagement – During this time, our team meets with management (and other third parties) to identify engagement objectives. The details uncovered will help to shape the specific procedures used to gain insight.
Development of AUPs – Once the scope, nature, and details are agreed upon, the specific procedures are identified and outlined. They must be objective and measurable to provide consistent results.
Fieldwork – During this time, our team carries out the agreed upon procedures as outlined in the engagement letter. It is important to note that additional testing will not be conducted even if potential issues are observed.
Report – Once completed, we issue an AUP report that outlines all the areas tested and the corresponding results. The report does not include any commentary or conclusions; instead, it states only the objective results. The report is only provided to “specific parties” and is not designed for public use.

Interested in learning more? Contact us today to discuss how we can help with your situation.

CLIENT TESTIMONIAL

They are knowledgeable, responsive, helpful, and kind. Working with them takes the sting out of a complex audit.

Louann Casares
2 Towns Ciderhouse 401(k) Plan