Agreed-Upon Procedures (AUP) Services
Agreed-Upon Procedures (AUP) services provide targeted CPA testing and factual findings for specific financial, operational, or compliance concerns without the scope of a full audit. Molinari Oswald serves organizations in Whitehall, Allentown, Bethlehem, Easton, and across Lehigh, Northampton, Bucks, Montgomery, and Berks counties, throughout the Mid-Atlantic, and nationwide helping boards, lenders, and leadership address defined risk areas with focused, efficient procedures.
Agreed-Upon Procedures (AUP), Targeted Financial Oversight
Sometimes a board member, committee, lender, or stakeholder suggests an organization needs an “audit.” In many cases, an Agreed-Upon Procedures (AUP) engagement delivers the exact level of work required without the scope, timeline, or cost of a full financial statement audit.
Based in Center Valley, Pennsylvania, our CPA-led team at Molinari Oswald performs AUP engagements for organizations in Allentown, Bethlehem, Easton, and Whitehall as well as the surrounding counties of Lehigh, Northampton, Bucks, Montgomery, and Berks. We provide these specialized services across the Mid-Atlantic region and nationwide, addressing specific questions, risk areas, or compliance concerns.
An AUP engagement is designed to produce a report of factual findings based on procedures agreed upon in advance. This targeted approach allows leadership to gain clarity on high-priority financial data without over-scoping the engagement.
What Is an Agreed-Upon Procedures (AUP) Engagement?
An AUP engagement is a structured service in which:
- The organization and CPA agree in advance on the procedures to be performed
- The CPA performs those procedures and documents results
- The final report provides factual findings, not an opinion
- No assurance is provided on the financial statements as a whole
In short: AUP is built for organizations that want targeted testing and clarity around a defined area, without requesting a full audit or review.
When AUP Is the Right Fit
AUP engagements are ideal when you need focused procedures to answer specific questions, including:
Board or Committee Requests
When leadership wants independent testing in a specific area (without requiring a full audit).
Operational or Financial Concerns
When a particular account, process, or policy needs immediate attention.
Compliance, Contract, or Grant Requirements
When an organization needs testing aligned to a new policy, contract, lender covenant, or grant requirement.
Risk-Based Reviews
When you want targeted procedures to assess risk areas such as payroll, cash handling, or receivables.
How Our AUP Engagements Work
Every AUP engagement begins with defining what you need the procedures to accomplish.
AUP vs. Audit vs. Review: What’s the Difference?
| Engagement Type | What It Is | Level of Assurance | What You Receive | Best For |
|---|---|---|---|---|
| AUP (Agreed-Upon Procedures) | Targeted procedures agreed upon in advance | None (no overall assurance) | Factual findings only (results of the procedures performed) | Specific issues, compliance tests, board requests, lender-required procedures |
| Review | Inquiry + analytical procedures | Limited assurance | A conclusion that nothing came to the accountant’s attention indicating material modifications are needed | Lender reporting, moderate external confidence, smaller organizations needing credibility without an audit |
| Audit | Extensive testing + verification | Highest assurance | An independent audit opinion on the financial statements | Regulatory requirements, investors, formal reporting, larger funding or governance needs |
Dedicated CPAs, Not a One-Size-Fits-All Approach
AUP engagements should not be templated. We tailor procedures to your organization’s reality and the question you need answered whether that’s internal controls, payroll, receivables, compliance, or a board-driven concern.
You work with a dedicated CPA-led team not a rotating national desk or call-center model.
Schedule an Agreed-Upon Procedures Engagement
If your organization needs targeted testing, compliance verification, or board-requested procedures, an AUP engagement may be the most efficient path to clarity.
Contact us to discuss your goals and define the procedures needed for a tailored AUP report.
Frequently Asked Questions
Do Agreed-Upon Procedures provide an audit opinion?
No. An AUP engagement reports factual findings based on agreed procedures and does not provide an audit opinion on financial statements.
Who decides what procedures are performed?
The procedures are agreed upon in advance by the organization and the CPA (and may include board, lender, or other stakeholder input when appropriate).
Can an AUP engagement focus on one account like payroll or receivables?
Yes. AUP engagements are often designed to test specific areas such as payroll, accounts receivable, cash handling, or compliance requirements.
Is an AUP engagement less expensive than an audit?
Often, yes because the scope is targeted to specific procedures rather than a full financial statement audit.
When would a board request an AUP instead of a full audit?
When the board wants independent verification of a specific risk area or process but does not require full financial statement assurance.
Can AUP procedures be used to test policy or contract compliance?
Yes. AUP engagements can test compliance with policies, procedures, contracts, lender covenants, or grant requirements.
