Forthme Auditors L.L.C

Agreed-Upon Procedures (AUPs)

Agreed-Upon Procedures (AUPs)

Independent, Targeted & Transparent Examination of Specific Business Matters

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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What Are Agreed-Upon Procedures?

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.

Tailored Procedures for Specific Requirements

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.

Financial Information AUPs

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 & Sales Verification

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.

Expense & Expenditure Verification

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.

Project & Grant Expenditure Reviews

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 & Employee Cost Procedures

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.

Accounts Receivable Procedures

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.

Accounts Payable & Supplier Procedures

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 Verification Procedures

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.

Internal Control Procedures

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.

Compliance & Regulatory Procedures

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.

Transaction & Investment Procedures

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.

AUP Reporting

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.

Benefits of Agreed-Upon 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

Why Choose Forth ME Auditors?

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.

Frequently Asked Questions

What is an Agreed-Upon Procedures engagement?

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.

Is an AUP the same as an audit?

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.

Can AUP procedures be customised?

Yes. The procedures are designed around the agreed purpose, information requirements, scope, and needs of the intended users.

What areas can be covered by an AUP engagement?

An AUP engagement may cover selected financial information, revenue, expenses, payroll, receivables, payables, inventory, project expenditure, internal controls, compliance requirements, or other agreed matters.

Does an AUP report provide assurance?

An AUP report generally presents the procedures performed and factual findings identified. It does not provide an audit opinion or a general assurance conclusion.

Who can use an AUP report?

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.

Obtain Focused, Independent Findings

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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