Agreed-upon procedures
Named checks on a defined subject, performed exactly as agreed, with factual findings the intended users can rely on.
Specific procedures, agreed with you in advance, performed on a defined subject matter, with factual findings and no opinion.
Sometimes the question is narrow and specific. A lender wants certain covenants checked. An investor wants a sample of receivables confirmed. A brand owner wants a franchisee's sales reports tested against its records. An agreed-upon procedures engagement answers that kind of question.
The procedures, the subject matter and the intended users are agreed in writing before work begins. We then perform the procedures exactly as agreed and report what we did and what we found, including every exception, with the evidence behind it.
An agreed-upon procedures report gives factual findings, not an audit opinion or an assurance conclusion. That makes it quick to scope and clear to read, and the intended users draw their own conclusions from the findings.
You, a lender, investor or partner need named checks performed on specific figures, contracts, claims or locations.
Signs we see most often
- 01A lender, investor or partner has asked for specific checks to be performed.
- 02A contract requires independent verification of figures, royalties or claims.
- 03You need the facts on a defined issue without the cost of a full audit.
- 04The board or a committee wants specific transactions or balances checked.
- 05A dispute may turn on a few verifiable facts.
Scoped in writing, run by one accountable team.
Every engagement starts with agreed questions, a reporting line and a confidentiality protocol. The steps below are how this service usually runs; we adapt them to your matter.
- 01AgreeAgree the procedures, subject matter, intended users and report format in writing.
- 02PlanConfirm the records, people and locations needed.
- 03PerformPerform each procedure exactly as agreed.
- 04DocumentDocument every exception with its evidence.
- 05ReportIssue a report of factual findings for the intended users.
A clear, factual report of what was checked and what was found, for the parties who agreed the procedures.
- An engagement letter setting out the agreed procedures
- A report of factual findings, procedure by procedure
- A schedule of exceptions with supporting evidence
- Working papers available to the intended users where agreed
The law and frameworks this work is aligned to
- ICAI Standard on Related Services (SRS) 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information
- ISRS 4400 (Revised), Agreed-upon Procedures Engagements, internationally
- Indian Contract Act, 1872 for the terms agreed between the parties
References show the standard the work is built to. They do not imply accreditation or endorsement by the bodies that publish them.
This is a summary of the service. For a deeper understanding of how it would work for your organisation, please reach out to us.
Talk to a BDI partnerQuestions clients ask before we start.
Will we get an opinion?
No. The report sets out the procedures performed and the factual findings. The intended users draw their own conclusions.
Who can rely on the report?
The intended users named in the engagement letter. Use by anyone else is agreed in advance.
Can the procedures change midway?
Yes, if all parties agree in writing. The report then records the procedures as finally agreed.