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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.
In an agreed-upon procedures engagement, the practitioner performs the procedures that have been agreed upon by the practitioner and the engaging party, where the engaging party has acknowledged that the procedures performed are appropriate for the purpose of the engagement.
An agreed-upon procedures engagement is one in which a practitioner is engaged by a client to issue a report of findings based on specific procedures performed on subject matter.
An agreed-upon procedures attest engagement is one in which a practitioner is engaged to issue a report of findings based on specific procedures performed on subject matter.
A5 The nature of an audit procedure refers to its purpose (test of con- trols or substantive procedure) and its type (inspection, observation, inquiry, confirmation, recalculation, reperformance, or analytical procedure).
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Agreed-upon procedures can be useful for business owners who need a report of findings on specific matters, but do not require a financial statement audit where formal opinions or conclusions are drawn.
The required elements for the agreed-upon procedures report include the name of the engaging party, a description of the subject matter, the procedures performed and their findings, and statements on the responsibility of the engaging party, the auditor, and the users, as well as an alert to restrict the use of the
The standard states that independence is not a requirement for agreed-upon procedures engagements, however the terms of the engagement or national standards may require the professional accountant to comply with the independence requirements of the Code of Ethics for Professional Accountants.

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