Agreed Upon Procedures

Management will often request an agreed-upon procedures engagement when they have specific financial elements that require involvement by a CPA to enhance the credibility of information. Third parties, such as banks, regulatory agencies, prospective investors and prospective purchases, may require the following:

• Procedures regarding specific financial statement accounts (cash, accounts receivable, inventory, property and equipment, accounts payable, debt, equity, sales/revenue, cost of sales/expense)
• Reporting required by contractual agreements
• Reporting on compliance
• Pro forma financial information
• Ownership changes
• Services for trusts and estates
• Internal Control