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In a compilation engagement, the CPA compiles financial statements from management-provided information but does not express an opinion. Lastly, in a review engagement, the CPA reviews the financial statements and expresses an opinion on whether the statements are free of material misstatement.
Agreed-upon Procedures (AUP) are tests of certain selected areas of the balance sheet and/or income statement. Here, individually agreed-upon procedures, such as target/actual comparisons, recon-ciliations and confirmations are carried out and any deviations identified are presented. No assurance is expressed here.
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.
The agreed-upon procedure is executed, which can include extensive reviews of historical data, data analysis, issue identification, summaries of conclusions and any other specific procedures called out in the overall AUP.
Agreed-upon Procedures (AUP) are tests of certain selected areas of the balance sheet and/or income statement. Here, individually agreed-upon procedures, such as target/actual comparisons, recon-ciliations and confirmations are carried out and any deviations identified are presented.
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Comparing audit, review, and compilation: Audits offer the most assurance that a clients financial statements are free from material misstatements, while reviews provide a limited level of assurance, and compilations provide no assurance.
Compilations, Reviews Agreed Upon Procedures (AUP). This method provides no opinions or assurance; it is just a means to present your businesss financial performance. A review provides limited assurance, which means its not as thorough as an audit but is more detailed than a compilation.
AUP engagements involve an auditor performing specific procedures that have been agreed upon by the entity and any third parties involved. The auditor then reports on the factual findings of these procedures, without expressing an opinion or assurance.

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