Helping with businesses & it’s challenges.
An agreed-upon procedure is a standard a company or client outlines when it hires an external party to perform an audit on a specific test or business process. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.
When we are engaging with our customers we perform an agreed-upon procedure. This allows our clients to know exactly what procedures are used to perform that is based on the client’s requirements. An entity and a third party will thereby produce factual findings of financial information or operational processes. The tests that can be done will be things such as sales, purchases, accounts receivable and stock-taking procedures.
Agreed-upon procedures engagement means the service that company management and auditors approve before the services are rendered.