Agreed-Upon Procedures (AUP) Engagements

Address specific concerns about your finances with a tailored approach

Dive into precision with SSL Associates' Agreed-Upon Procedures (AUP) engagements in Chicago, Illinois, and nationwide. Tailored to your needs, our procedures offer targeted insights, flexibility, and assurance to provide you with financial confidence like never before.

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Agreed-Upon Procedures

Agreed-Upon Procedures Engagements: Tailored Solutions for Focused Answers

Agreed-Upon Procedures (AUPs) are a type of engagement where your business or organization collaborates with a CPA firm like SSL Associates to define a specific set of procedures to be performed on a particular area of your financial operations.

How Do AUP Engagements Differ from Traditional Audits?

Agreed-Upon Procedures engagements and traditional audits serve different purposes, although both involve reviewing financial information. Here's a breakdown of the key differences:

Scope and Focus:

AUP Engagements: Focus on a specific area or question about an organization's finances. The scope is defined collaboratively between the client and the CPA firm, tailoring procedures to address the specific concern.
Traditional Audits: Provide a broad assessment of an organization's financial statements. Auditors follow a standardized set of procedures to express an opinion on whether the financial statements are fairly presented in accordance with generally accepted accounting principles.

Level of Assurance:

AUP Engagements: Offer "limited assurance" on the specific procedures performed. The resulting report details the findings and observations but doesn't provide an opinion on the accuracy of the overall financial statements.
‍Traditional Audits: Provide a "high level of assurance" through a comprehensive examination. The auditor's opinion on the fairness of the financial statements increases user confidence in the information.

Benefits of Agreed-Upon Procedures Engagements:

Target-Specific Concerns:

Address pressing questions about a financial area without a full audit.

Gain Limited Assurance:

Get comfort in a focused area, increasing confidence in your finances.

Meet Requirements:

Fulfill specific procedures mandated by lenders, investors, or regulations.

Boost Transparency:

Provide stakeholders with limited assurance on a particular financial issue.

Cost-Effective Solution:

Get targeted answers at a lower cost than a full audit.

What Types of Procedures Can Be Included in an AUP Engagement?

In an Agreed-Upon Procedures (AUP) engagement, the procedures are customized based on the needs and objectives of the client. Here are some common types of procedures that can be included:

Verification of specific financial transactions or account balances.
Examination of compliance with contractual agreements or regulatory requirements.
Confirmation of revenue recognition practices.
Testing of internal controls related to financial processes.
Assessment of the accuracy and completeness of financial records.
Analysis of expense allocations and disbursements.
Evaluation of inventory management practices.
Review of payroll processing and related tax compliance.
Investigation of fraud or financial irregularities.
Validation of grant compliance and reporting.
Examination of specific financial ratios or performance indicators.
Confirmation of adherence to industry-specific standards or best practices.

These procedures are agreed-upon by all parties involved in the engagement which allows for a tailored approach to address the organization's specific concerns or areas of focus.

Gain Financial Confidence: Schedule Your Custom AUP Engagement Today!

Empower your organization with precision and assurance. At SSL Associates, our tailored AUP engagements offer targeted insights to guarantee financial integrity and peace of mind. Contact us to elevate your financial processes.

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(630) 819-6040

Navigating AUP Engagements with SSL Associates

At SSL Associates, we're your trusted navigators through the intricacies of Agreed-Upon Procedures (AUP) engagements. With meticulous attention to detail and expertise, we ensure precision, flexibility, and reliability in every engagement.

Nonprofit Organizations

AUP engagements for nonprofits ensure financial transparency, compliance with regulations, and donor trust to foster mission-driven success and accountability.

For-Profit Businesses

We provide comprehensive audit & assurance services to businesses, delivering thorough evaluations that enhance transparency and build stakeholder trust. Our approach combines traditional methods with innovative techniques to offer reliable and effective auditing solutions.

Why Choose SSL Associates for Your AUP Engagement?

Choosing SSL Associates for your Agreed-Upon Procedures (AUP) Engagement offers numerous benefits:

In Business Since 1986

Our team comprises experienced auditors with in-depth knowledge of AUP procedures and regulatory requirements.

Tailored Approach

We customize AUP engagements to address your organization's needs and objectives to result in relevance and effectiveness.

Flexibility

We work closely with clients to determine the scope and timing of AUP engagements, accommodating your schedule and preferences.

Accuracy and Precision

Our meticulous procedures and thorough analysis deliver precise insights and assurance to enhance your confidence in financial processes.

Cost-Effective Solutions

Our AUP services offer cost-effective alternatives to comprehensive audits, providing targeted assurance without unnecessary expenses.

Timely Delivery

We strive to complete AUP engagements efficiently and promptly to deliver actionable results within agreed-upon timelines.

Hear It from Our Clients

Seamus Naughton, Lake Shore Glass

5.0

As the owner-operator of a construction company, my hours are spent focusing on the operational aspects of our business. Managing our year-end financials was an unwelcome challenge that was a large drain on my time. Having SSL Associates, Ltd. freed me to focus my attention where it best served my company, and gave me peace of mind that our accounting would be done accurately, professionally, and on time. Their ability to work hand in hand with our accounting department allows us to tackle problems as they arise throughout the year to ensure all tax & financial reporting deliverables are free of any last-minute headaches.

Steve Brown, VP Business, Sabre Hockey Association

5.0

SSL Associates, Ltd. has been an invaluable resource for our youth hockey non-profit organization. Their team's expertise in tax compliance and financial reporting has been instrumental in ensuring transparency and accountability to our many families, donors and stakeholders. Their commitment to excellence and their deep understanding of the non-profit sector have made them an indispensable part of our success and a valued partner that we trust and rely on for their guidance.

Kristin Newell, Director of Finance and Administration, Evolution Soccer Club

5.0

When we started the not-for-profit youth travel soccer club, we quickly grew large enough that we are required to be audited by an independent accounting firm each year. We have used SSL Associates Ltd. for the past seven years and couldn’t be happier with their services. SSL also helped us make improvements to our Quickbooks so that the Audit is now very efficient. Their responsiveness and expertise in non-profit accounting has enabled our staff to stay focused on our mission of providing a competitive and positive learning environment to develop our players both on and off the field.

Mark Huelskoetter

5.0

SSL Associates has been a trusted advisor to Wenzak for many years. Their knowledge and valuable insights around tax and reporting impacts of business issues has helped us to navigate key decisions and stay focused on our core business. We greatly appreciate the personal approach and responsiveness of the entire team.

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FAQs

Who typically requests AUP engagements?

Agreed-Upon Procedures engagements can be requested by a wide range of businesses and organizations for various reasons. Here's a breakdown of some common scenarios:

1. Addressing specific concerns:

Management: Management may have specific questions or concerns about a particular area of their financial operations, such as cash flow management or inventory valuation. An AUP can provide limited assurance on that specific area.
Board of Directors: The board may request an AUP to gain deeper insight into a particular financial issue before making a critical decision.

2. Fulfilling requirements:

Lenders or investors: Loan agreements or investment contracts may require borrowers or investees to undergo specific procedures on their financials. An AUP can fulfill these requirements.
Regulatory bodies: Certain industries may have regulations requiring specific procedures on financial controls or compliance matters. An AUP can be used to meet these needs.

3. Increased transparency:

Stakeholders: An AUP can be used to provide limited assurance to stakeholders, such as creditors or donors, on a specific aspect of the organization's finances.

How is the scope of an AUP engagement determined?

The scope of an Agreed-Upon Procedures (AUP) engagement is typically determined through discussions between the client and the auditor. It involves identifying specific financial areas or transactions to be examined and agreeing upon the procedures to be performed. The scope is tailored to address the client's objectives and concerns to make sure that the engagement focuses on areas of highest importance.

How long does an AUP engagement typically take?

The duration of an AUP engagement can vary depending on factors such as the complexity of the procedures, the size of the organization, and the availability of necessary documentation. While some AUP engagements may be completed within a few weeks, others could take several months to conduct thoroughly. It’s important to discuss timing expectations with the auditor during the planning phase of the engagement.

Are AUP engagement reports publicly available?

AUP engagement reports are typically not publicly available unless required by regulatory or contractual obligations. These engagements are conducted at the request of specific stakeholders, such as management, regulators, or third-party entities, and the results are communicated directly to them. However, organizations may choose to share the findings of the AUP engagement with relevant parties as needed.

How often should an organization undergo AUP engagements?

The frequency of AUP engagements depends on factors such as regulatory requirements, contractual agreements, and the organization's needs and risks. Some organizations may undergo AUP engagements annually or periodically to address ongoing concerns or compliance requirements, while others may schedule them on an as-needed basis in response to specific events or transactions.

Can the results of an AUP engagement be used for regulatory compliance?

Yes, the results of an AUP engagement can be used for regulatory compliance purposes if the procedures performed align with regulatory requirements. However, it's essential to ensure that the scope of the engagement addresses the specific regulatory concerns and that the procedures performed provide sufficient evidence to demonstrate compliance. Organizations should work closely with their auditors to design AUP procedures that meet regulatory expectations and fulfill compliance obligations.