Related Services

An agreed-upon procedures engagement is an engagement in which the auditor carries out procedures to which the auditor and the party that engaged the auditor (the engaging party) have agreed and which have been confirmed by the engaging party to be appropriate for the purpose of the engagement. The procedures performed and the auditor’s findings are presented in an agreed-upon procedures report. The engaging party and other intended users of the report assess the procedures and findings reported by the auditor and draw their own conclusions from the auditor’s work.
An agreed-upon procedures engagement is not an audit or a review or other assurance engagement – it does not involve the gathering of evidence to express assurance in the form of an opinion or a conclusion. Such engagements include, for example, evaluations of the legality of transactions and special audits.
An evaluation of the legality of transactions is a related service provided by auditors in which the legality of a transaction or transactions is evaluated for an agreed purpose. The auditor issues a report that describes the subject matter and purpose of the agreed-upon procedures, the specific procedures performed, the factual findings and any errors found.
An auditor may also be engaged to perform a compilation engagement, i.e. to assist in the preparation and presentation of the client’s financial information (e.g. the financial statements). The purpose of such an engagement is to apply the auditor’s professional expertise in accounting and financial reporting to assist management in preparing and presenting financial information in accordance with the applicable financial reporting framework on the basis of information provided by management. A compilation engagement is not an assurance engagement – it does not require the auditor to verify the accuracy or completeness of the information provided by management for the compilation, or to otherwise gather evidence. Management retains responsibility for the financial information as well as its correct preparation and fair presentation. That responsibility includes application by management of the judgement required for the preparation and presentation of the financial information.