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Your CPA offers a wide menu of services. One flexible offering, known as an \u201cagreed-upon procedures\u201d engagement, provides limited assurance on a specific aspect of an organization\u2019s financial or nonfinancial information.<\/p>\n
What\u2019s covered?<\/strong><\/p>\n Agreed-upon procedures can cover various items. For example, a CPA could provide a statement about the reliability of a company\u2019s accounts receivable, the validity of the sales team\u2019s credit card payments, the effectiveness of the controls for the security of a system and even greenhouse gas emissions.<\/p>\n Lenders may request these types of engagements before they\u2019ll approve a new loan application or an extension of credit for an existing customer \u2014 or they might want one if a borrower defaults on its loan covenants or payments. These engagements can also be useful in M&A due diligence, by franchisors or when a business owner suspects an employee of misrepresenting financial results.<\/p>\n Stakeholders don\u2019t necessarily like waiting until year end to see how an organization is faring in today\u2019s uncertain markets. Agreed-upon procedures can be done at any time, so they can provide much-needed peace of mind throughout the year.<\/p>\n What\u2019s reported?<\/strong><\/p>\n <\/strong>These engagements are based on procedures similar to an audit, but on a limited scale. When performing agreed-on procedures, CPAs issue no formal opinions; they simply act as fact finders. The report lists:<\/p>\n Agreed-upon procedures can be relied on by third parties. But it\u2019s the user\u2019s responsibility to draw conclusions based on the findings.<\/p>\n What\u2019s new? <\/strong><\/p>\n Agreed-upon procedures are usually a one-time engagement, so you might not know much about them \u2014 or how the rules that apply to them changed a few years ago. A revised standard was published in 2019, bringing several key changes. Most notably, an accountant is now allowed to report on a subject matter without obtaining a written assertion from the responsible party that the responsible party complies with an underlying criterion, such as laws or regulations. This gives CPAs more flexibility when examining or reviewing certain documents if the engaging party can\u2019t appropriately measure or evaluate them.<\/p>\n The revised standard also:<\/p>\n The new guidance went into effect for reports dated on or after July\u00a015, 2021, although early implementation was permitted.<\/p>\n Contact us<\/strong><\/p>\n In today\u2019s uncertain marketplace, agreed-upon procedures can provide much-needed peace of mind throughout the year. We can help you customize procedures that fit the needs of your organization and its stakeholders.<\/p>\n \u00a9 2022<\/em><\/p>\n <\/body> Your CPA offers a wide menu of services. One flexible offering, known as an \u201cagreed-upon procedures\u201d engagement, provides limited assurance on a specific aspect of an organization\u2019s financial or nonfinancial information. What\u2019s covered? Agreed-upon procedures can cover various items. For example, a CPA could provide a statement about the reliability of a company\u2019s accounts receivable, […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,7,10],"tags":[8,11,12],"class_list":["post-16339","post","type-post","status-publish","format-standard","hentry","category-aa","category-articles","category-news","tag-articles","tag-news","tag-updates"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=16339"}],"version-history":[{"count":1,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16339\/revisions"}],"predecessor-version":[{"id":16340,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16339\/revisions\/16340"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=16339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=16339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=16339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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