What is an agreed-upon procedures engagement?

An agreed-upon procedures (AUP) engagement is an attestation engagement under AICPA AT-C 215 in which an independent CPA performs specific procedures on a subject matter and reports the findings. The CPA does not express an opinion or conclusion. The engaging party acknowledges that the procedures are appropriate for its purpose.

Does an AUP report include an opinion?

No. An AUP report lists each procedure performed and the related findings, and states that the CPA was not engaged to, and did not, perform an examination or review and does not express an opinion or conclusion. Readers draw their own conclusions from the findings.

Who can use an AUP report?

Since SSAE 19 revised AT-C 215, an AUP report may be a general-use report. The CPA may restrict its use, for example when the procedures are meant only for a lender, a grantor, or a regulator. Restricted reports include an alert naming the intended users.

When is an AUP better than an audit or review?

An AUP fits when a funder, lender, franchisor, board, or agency needs specific items tested, such as grant expenditures, covenant calculations, or royalty reports, rather than assurance on complete financial statements. It is often faster and narrower in scope than an audit.

Does the CPA have to be independent for an AUP?

Yes. An AUP is an attestation engagement, so the CPA must be independent of the responsible party under the AICPA Code of Professional Conduct and the attestation standards.

Who decides which procedures are performed?

The engaging party, often with input from the report users such as a grantor or lender, agrees to the procedures with the CPA and acknowledges they are appropriate. Under SSAE 19 the procedures may be developed or refined during the engagement, as long as the engaging party agrees before the report is issued.

Agreed-Upon Procedures (AUP) Engagements

An agreed-upon procedures engagement is an attestation service under AICPA AT-C 215 in which an independent CPA performs specific procedures you and your report users choose, then reports the findings. There is no opinion or conclusion. AUPs are used for grant compliance, lender covenants, royalties, churches, HOAs, and agency requirements.

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How is an AUP different from an audit?

An audit gives reasonable assurance and an opinion on complete financial statements. An agreed-upon procedures engagement gives no assurance: the CPA performs only the procedures the engaging party agrees to, such as recalculating a covenant or testing grant invoices, and reports what was found. It is narrower, targeted, and often faster.

Agreed-upon procedures (AUP): An agreed-upon procedures engagement is an attestation engagement under AICPA AT-C 215 in which a CPA performs specific procedures on subject matter and reports findings, without providing an opinion or conclusion.

How AT-C 215 works after SSAE 19

The AICPA’s Statement on Standards for Attestation Engagements No. 19 revised AT-C 215 and modernized AUP engagements. Three changes matter most to clients. First, the engaging party acknowledges that the procedures are appropriate for the intended purpose; other report users no longer have to take responsibility for the sufficiency of the procedures. Second, the report can be a general-use report, although the CPA may restrict it to specified parties when appropriate. Third, procedures may be developed or refined during the engagement, as long as the engaging party agrees to them before the report is issued.

What has not changed: the CPA must be independent, must perform the procedures as agreed, and must report findings factually. Procedures must be specific enough that findings are objective. Vague terms such as “general review” or “check for reasonableness” are not acceptable procedures. The CPA also requests written representations from the responsible party.

Common uses for agreed-upon procedures

Grant compliance

Testing that grant expenditures are allowable, supported, and within budget, or that required matching funds were met. See our grant compliance services.

Churches and ministries

Offering count testing, bank reconciliation checks, clergy compensation traced to board approvals, and designated fund roll-forwards.

Homeowner and condominium associations

Reserve fund balances, assessment collections, and disbursement testing when governing documents or the board call for procedures rather than an audit.

Lender covenants

Recalculating debt service coverage, working capital, or other covenant ratios from the borrower’s records.

Franchise fees and royalties

Comparing reported sales to point-of-sale data and bank deposits, and recalculating royalty and advertising fund fees.

State and local agency requirements

Procedures an agency or contract specifies, such as testing claims for reimbursement, program statistics, or cost reports.

AUP vs. audit vs. review vs. compilation

	Audit	Review	Compilation	AUP
Standard	AU-C (GAAS)	AR-C 90 (SSARS)	AR-C 80 (SSARS)	AT-C 215 (SSAE)
Assurance	Reasonable	Limited	None	None; findings only
Report	Opinion	Conclusion	Compilation report	Procedures and findings
Scope	Full financial statements	Full financial statements	Full financial statements	Specific items selected by the engaging party
Independence required	Yes	Yes	No (impairment must be disclosed)	Yes

For a deeper comparison, read audit vs. review vs. compilation, or see our compilation and review services. If a law, regulation, or agreement specifically requires audited financial statements, an AUP does not replace the audit. Ask the report user before choosing.

What you receive: the AUP report of findings

The deliverable is an independent accountant’s report on applying agreed-upon procedures. Under AT-C 215 it identifies the engaging party and the subject matter, states that the engaging party acknowledged the procedures are appropriate, lists each procedure with its findings, and states that the CPA was not engaged to perform an examination or review and does not express an opinion or conclusion. It also states that other matters might have been reported had additional procedures been performed, and includes any restriction on use.

Findings are stated factually, for example “we selected 25 disbursements; 2 lacked an approved invoice,” and any threshold for reporting exceptions is agreed in advance.

Our AUP process

Define the purpose. We learn who will use the report and what question it must answer, and review any funder, lender, or contract language.
Agree on procedures. We draft specific, measurable procedures and an engagement letter; you acknowledge they are appropriate.
Perform the procedures. We request records, perform testing, and document findings.
Obtain representations. The responsible party provides written representations.
Issue the report. You receive the report of procedures and findings, ready to share with its intended users.

Explore our broader attestation services or all audit and assurance services.

Agreed-Upon Procedures FAQs

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Tell us what your funder, lender, or board is asking for, and we will help you decide whether agreed-upon procedures, a review, or an audit is the right fit.

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