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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.
Some examples of agreed-upon procedures include reviews of internal controls, due diligence when buying or selling a business, and contract compliance analysis.
What is an Agreed-Upon Procedure? An agreed-upon procedures engagement is an attestation engagement where a CPA issues a report of findings based on specific procedures performed on the subject matter. The subject matter can be financial or nonfinancial.
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.
Because the specified parties require that findings be independently derived, the services of a practitioner are obtained to perform procedures and report the practitioners findings.
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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. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.
A statement that an agreed-upon procedures engagement involves the practitioner performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.

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