An agreed upon procedures engagement defined by the AICPA is an engagement in which a practitioner is engaged by a client to issue a report of findings based on specific procedures performed on a subject matter.
The client engages the practitioner to assist specified parties in evaluating subject matter or an assertion as a result of a need or needs of the specified parties. Because the specified parties require that findings be independently derived, the services of a practitioner are obtained to perform procedures and report his or her findings.
The specified parties and the practitioner agree upon the procedures to be performed by the practitioner that the specified parties believe are appropriate. Because the needs of the specified parties may vary widely, the nature, timing, and extent of the agreed-upon procedures may vary as well; consequently, the specified parties assume responsibility for the sufficiency of the procedures since they best understand their own needs.
We regularly perform agreed-upon-procedure engagements for governmental entities including cities, counties, and states.