Organisations may require independent assurance over specific financial, operational, compliance, or control-related matters without engaging a full financial statement audit. In such cases, Agreed-Upon Procedures (AUPs) provide a focused and flexible approach.
An AUP engagement is designed around procedures that are agreed upon by the relevant parties. These procedures may involve examining selected records, transactions, balances, controls, processes, or business activities. The findings are then reported based on the procedures performed and the factual results identified.
Forth ME Auditors L.L.C. provides professional Agreed-Upon Procedures services in Dubai and across the UAE. We work with businesses, management teams, investors, lenders, government-related entities, and other stakeholders to develop targeted procedures based on their specific information and reporting requirements.
Our approach is structured, objective, and tailored to the agreed scope. We help clients obtain clear factual information about specific matters while maintaining transparency regarding the procedures performed and the results identified.
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Agreed-Upon Procedures are specific procedures performed on selected financial or non-financial information. The nature, scope, and extent of the procedures are agreed upon before the engagement begins.
Depending on the engagement, procedures may include:
Inspection of documents and records
Examination of selected transactions
Recalculation of financial information
Comparison of records
Verification of supporting documentation
Review of selected balances
Confirmation of specific information
Observation of defined activities
Analysis of agreed data
Testing of selected controls
The resulting report presents the procedures performed and the factual findings identified. The report does not provide an audit opinion unless the engagement is specifically structured as an audit or another assurance engagement.
Every organisation has different reporting, governance, compliance, and operational requirements. AUP engagements can be designed to focus on specific areas rather than reviewing the entire business.
The scope may be tailored to examine:
Specific financial balances
Selected transactions
Contractual requirements
Grant or project expenditure
Revenue information
Payroll records
Procurement activities
Inventory records
Internal controls
Regulatory requirements
Operational processes
Management information
This targeted approach can provide relevant information while avoiding the broader scope of a full financial statement audit where such an audit is not required.
Businesses may require independent procedures over specific financial information for management, investors, lenders, business partners, or other stakeholders.
Our financial AUP services may include:
Review of selected account balances
Testing of specific financial transactions
Examination of supporting documents
Verification of revenue information
Review of expense records
Testing of accounts receivable
Review of accounts payable
Examination of cash and bank information
Review of selected financial calculations
Verification of financial schedules
The procedures are developed according to the agreed objectives and the information required by the intended users.
Revenue information may be reviewed for commercial, contractual, investment, financing, or management purposes.
Agreed procedures may include:
Comparison of sales records
Examination of customer invoices
Review of sales agreements
Testing of selected revenue transactions
Comparison of sales reports with accounting records
Review of credit notes and adjustments
Verification of selected customer information
Recalculation of agreed revenue figures
Review of supporting documentation
The scope is agreed in advance and may focus on specific periods, business units, products, services, or customer categories.
Organisations may require independent procedures to examine whether selected expenditure is supported by appropriate documentation and processed according to agreed requirements.
Our procedures may include:
Review of expense records
Examination of invoices and supporting documents
Testing of selected payments
Comparison of expenditure with approved budgets
Review of approval evidence
Verification of payment information
Examination of procurement records
Review of selected cost allocations
Recalculation of expenditure totals
These procedures may be relevant to internal management, investors, project owners, funding organisations, or other stakeholders.
Projects funded by investors, government entities, development organisations, or other funding bodies may require specific procedures to verify how funds have been used.
Our AUP services may include:
Review of project expenditure
Testing of selected project costs
Comparison of expenditure with approved budgets
Examination of supporting documentation
Review of payment records
Verification of selected project transactions
Review of procurement documentation
Testing of expenditure eligibility criteria
Review of project financial reports
The procedures are developed according to the agreed project requirements and reporting objectives.
Payroll expenses may represent a significant cost for many organisations. Targeted procedures can help management or other stakeholders examine selected payroll information.
Our procedures may include:
Testing of selected payroll records
Comparison of payroll reports with accounting records
Review of employee information
Verification of selected salary calculations
Examination of payroll approvals
Review of employee cost records
Testing of selected payroll payments
Review of payroll-related documentation
Recalculation of agreed payroll amounts
The procedures are limited to the agreed scope and do not replace a full review of all payroll activities unless specifically included.
Organisations may require independent procedures over customer balances, collections, ageing information, or selected receivable transactions.
Our services may include:
Review of accounts receivable ageing
Testing of selected customer balances
Examination of customer invoices
Comparison of customer records
Review of subsequent collections
Verification of selected credit adjustments
Recalculation of agreed receivable information
Review of supporting documentation
These procedures can support management reviews, investment assessments, financing requirements, and transaction-related analysis.
Targeted procedures may be performed on supplier balances, payments, invoices, and selected procurement information.
Our procedures may include:
Review of accounts payable balances
Testing of selected supplier transactions
Examination of supplier invoices
Review of payment records
Comparison of supplier information
Verification of selected approvals
Review of outstanding obligations
Recalculation of agreed balances
Examination of supporting documentation
The scope can be designed around specific suppliers, periods, business units, or transaction categories.
Inventory information may be reviewed for management, financing, transaction, reporting, or operational purposes.
Our procedures may include:
Observation of agreed inventory counts
Testing of selected inventory records
Comparison of physical counts with inventory records
Review of inventory movement information
Examination of selected inventory documentation
Recalculation of inventory schedules
Review of inventory reconciliation records
Testing of selected inventory items
The procedures are designed according to the agreed objectives and do not necessarily constitute a full inventory audit.
AUP engagements may be used to perform specific procedures relating to selected internal controls or business processes.
Our procedures may include:
Examination of approval records
Testing of selected control activities
Review of segregation of duties
Examination of access-related information
Review of selected process documentation
Testing of agreed control requirements
Review of exception records
Examination of control evidence
Verification of selected management reviews
The engagement focuses on the specific controls and procedures agreed with the relevant parties.
Businesses may require targeted procedures to assess selected information against defined contractual, regulatory, internal, or stakeholder requirements.
Our services may include:
Review of selected compliance records
Examination of required documentation
Testing of agreed compliance requirements
Comparison of records with defined criteria
Review of selected approvals
Examination of supporting evidence
Verification of specific reporting information
Review of identified exceptions
The scope is based on the agreed criteria and does not constitute a legal or regulatory opinion.
Investors, buyers, sellers, and business partners may require specific procedures over selected financial information before making commercial decisions.
Our support may include:
Review of selected financial data
Testing of revenue information
Examination of key expense categories
Review of customer balances
Verification of selected assets
Examination of specific liabilities
Review of working capital information
Testing of agreed financial schedules
Review of transaction-related information
These procedures can provide focused factual information for investment or transaction evaluation.
At the completion of the engagement, we prepare a report describing:
The purpose of the engagement
The agreed scope
The procedures performed
The information examined
The factual findings identified
Any exceptions or differences noted
Relevant limitations of the engagement
The report is designed to provide clear information regarding the work performed and the results obtained.
The report does not provide an audit opinion or a general assurance conclusion. Users of the report evaluate the findings based on their own requirements and understanding of the agreed procedures.
Professional AUP services can help organisations:
Obtain independent findings on specific matters
Focus on selected financial or operational areas
Address stakeholder information requirements
Verify agreed information
Improve transparency
Support management decision-making
Review specific transactions or balances
Assess selected controls
Support contractual or project reporting
Obtain a tailored scope of work
Forth ME Auditors combines expertise in audit, accounting, financial reporting, internal controls, risk management, and business advisory.
Our approach is:
Independent and professionally managed
Tailored to the agreed engagement scope
Focused on clear and factual findings
Based on structured procedures
Designed around stakeholder requirements
Supported by transparent reporting
We work closely with clients to define relevant procedures and provide clear reporting on the factual results identified.
An Agreed-Upon Procedures engagement involves performing specific procedures that are agreed upon by the relevant parties and reporting the factual findings resulting from those procedures.
No. An AUP engagement is different from a financial statement audit. An audit provides an audit opinion based on a broader scope of work, while an AUP engagement reports factual findings from specific agreed procedures.
Yes. The procedures are designed around the agreed purpose, information requirements, scope, and needs of the intended users.
An AUP engagement may cover selected financial information, revenue, expenses, payroll, receivables, payables, inventory, project expenditure, internal controls, compliance requirements, or other agreed matters.
An AUP report generally presents the procedures performed and factual findings identified. It does not provide an audit opinion or a general assurance conclusion.
The intended users depend on the purpose and agreed terms of the engagement. They may include management, investors, lenders, project owners, funding organisations, business partners, or other relevant stakeholders.
When you need clarity on a specific financial, operational, or compliance matter, a tailored Agreed-Upon Procedures engagement can provide relevant and transparent information.
Forth ME Auditors L.L.C. provides professional Agreed-Upon Procedures services in Dubai and across the UAE, helping businesses and stakeholders perform targeted examinations, verify agreed information, assess selected matters, and make better-informed decisions.
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Whether you require an audit, tax advisory, accounting support, or strategic business consulting, our team is ready to help.