Agreed Upon Procedure (AUP)

Specialized Engagements. Proven Integrity.

An agreed-upon procedures engagement is an engagement in which an auditor is engaged to carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. The recipients of the report form their own conclusions from the report by the auditor. Carrying out an Agreed Upon Procedure provides varied benefits to businesses. The Agreed Upon Procedures can be carried out any time of the year. The report generated after the Agreed Upon engagements can be relied on by third parties as well. Moreover, businesses have the freedom to choose procedures deemed necessary for their organisation. This flexibility to choose helps businesses to reduce the cost of Agreed- Upon Procedures as well.

The report is restricted to those parties that have agreed to the procedures to be performed since others, unaware of the reasons for the procedures may misinterpret the results. Such agreed-upon procedures are performed during certain special situations, which include acquisitions, lenders wanting a report on the borrower’s finances, landlords looking for a report on tenant’s finances, a status review of a company or advice on financial structure, evaluation operational efficiency, processes etc.

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Examples for Agreed Upon Procedure Services

Agreed Upon Procedure Services are essential for all types of businesses including big entities and SMEs. Even the companies that do not require an audit will benefit from Agreed Upon Procedures for various purposes such as to satisfy banking or vendor requirements.Agreed Upon Procedure services (AUPs) encompass both financial and non-financial information. Some common examples of Agreed Upon Procedure engagements include:

Due diligence carried out before buying or selling businesses
Sales verification of particular outlet
Verification of cash balance
Checking security balances
Employer compliance/payroll audits
Special reviews of loan portfolios
Tax provisions
Accounts receivable/payable processes

Our Agreed up on procedure Services (AUP)

We provide specialized financial reporting in a variety of situations where your company desires independently verified and reported information, such as inspection of documents or transactions for specific characteristics, confirmation of specific information with third parties, or comparison of data to a defined standard. Many situations are appropriate for agreed-upon procedures, whether the objective is to provide specific information and negative assurance to users within your company or to third parties.

MGI SRCA is composed of a highly qualified team of audit professionals who can perform Agreed-Upon Procedures to prepare and produce factual findings. MGI SRCA provides specialized financial reporting catering to all our client’s business needs to help them in assessing factual finding of any particular segment of the business.

MGI SRCA are one of the oldest Auditing firm in UAE having local presence since decades along with International affiliation of MGI Worldwide This enables our Agreed up on procedure (AUP) enhance the credibility of the information provided to third parties, such as banks, regulatory agencies, prospective investors or prospective purchasers.