Agreed upon procedures focus on what the management or owners specifically want to look at. For example, you may be worried about your payroll calculation, margins of specific group of clients, or stock take procedures.
Agreed upon procedures will not replace an audit mainly because it is not a full financial statement audit. Clients decide on the type and extent of the procedures to be performed. Upon having performed the agreed upon procedures the auditor will generate a detailed report of findings on specific procedures. Although the auditor’s report does not express an opinion on the engagement, it does provide a detailed description of the procedures and findings.
However, agreed upon procedures are very helpful in identifying, correcting and improving certain areas of the entity, including internal control system.
If you have concerns about specific financial or operational aspects of your company our experts will support you and share their knowledge and experience.