Transaction Verification
Examining specific transactions, payments, or financial entries to confirm accuracy against source documents and records.
Audit & Assurance
Agreed-Upon Procedures
Practice01/06
Transaction Verification.
Note01Refer — Scope
Vouching payments, journal entries and transactions against source documents and bank records.
Index06 Practices
What Agreed-Upon Procedures Can Examine
AUP engagements adapt to a wide range of financial verification needs. Common applications include:
Covenant Compliance
Verifying adherence to financial covenants, loan agreements, or contractual obligations with lenders and other parties.
Regulatory Requirements
Confirming compliance with specific regulatory stipulations, filing requirements, or statutory financial conditions.
Revenue or Royalty Verification
Examining sales figures, royalty calculations, or revenue-sharing arrangements against underlying records.
Grant and Subsidy Compliance
Verifying that funds received under grants or subsidies have been utilised in accordance with specified conditions.
Internal Control Testing
Performing specific tests on designated internal controls to report factual findings to management or stakeholders.
Why Organisations Choose Agreed-Upon Procedures
AUP engagements offer a distinct approach to financial verification—one that puts you in control of what gets examined.
- You define the scope — procedures address only the questions that matter to you
- Costs are contained — targeted work means you pay for precision, not breadth
- Timelines are shorter — focused examinations reach completion faster than full audits
- All parties agree upfront — stakeholders jointly determine what will be examined
- Findings stand on their own — factual results without opinions, allowing you to draw conclusions
- Independent verification — a practising Chartered Accountant confirms the facts
How an AUP Engagement Works
Step 1
Scoping Discussion
We meet with all relevant stakeholders to understand the specific concerns, questions, or verification needs that the engagement should address.
Step 1
Scoping Discussion
We meet with all relevant stakeholders to understand the specific concerns, questions, or verification needs that the engagement should address.
Step 2
Procedure Agreement
The exact procedures to be performed are documented and agreed upon by all parties. Nothing is examined without prior consensus on scope.
Step 2
Procedure Agreement
The exact procedures to be performed are documented and agreed upon by all parties. Nothing is examined without prior consensus on scope.
Step 3
Engagement Letter
A formal letter sets out the agreed procedures, responsibilities, timeline, deliverables, and the parties who will receive the final report.
Step 3
Engagement Letter
A formal letter sets out the agreed procedures, responsibilities, timeline, deliverables, and the parties who will receive the final report.
Step 4
Procedure Execution
The agreed procedures are carried out methodically, with detailed documentation maintained for every test performed and every finding noted.
Step 4
Procedure Execution
The agreed procedures are carried out methodically, with detailed documentation maintained for every test performed and every finding noted.
Step 5
Factual Reporting
A formal report presents the factual findings—clearly stating what was examined, what was found, and what exceptions (if any) were identified. No opinions are expressed.
Step 5
Factual Reporting
A formal report presents the factual findings—clearly stating what was examined, what was found, and what exceptions (if any) were identified. No opinions are expressed.