Agreed-Upon Procedures (AUP)
1. What are AUPs (Agreed-Upon Procedures)?
In an AUP, the CPA will execute a specific procedure agreed in advance with the client, and report back on the findings.
2. Main purposes of AUPs
AUPs are highly flexible and can be easily adapted to specific client needs. They are commonly used for evaluation of financial statement items. Examples include but are not limited to:
| IPO | Short reviews and comfort letters for financial statement items |
|
Pharmaceutical companies |
Audit of R&D funds for outsourced research contracts |
|
Financial services |
Client asset segregation |
| M＆A |
Financial due diligence of acquisition targets |
3. Difference between AUPs and Assurance
In AUPs, the auditor will execute the agreed-upon procedures and report back on the findings, but the CPA will not express assurance. Clients are responsible for drawing their own conclusions.
For Assurance Services, the CPA will provide confirmation and express assurance on the findings.
4. Standard Flow for AUP Engagements
- Free consultation
- Submission of Quote
- Signing of AUP Agreement
- AUP Planning / Review of requested material
- Execution of AUP engagement
- Submission of report
5. Fee Policy
1. Daily charge (7 hours per day)
We will assess the number of days required for the engagement depending on your situation, and provide a tailored solution based on a daily charge system.
Daily charges are commensurate to the Big 4 accounting firms.
Large audit firms will charge a team rate for senior auditors who are often not onsite. Our services guarantee a fully qualified Japanese CPA with 10+ years of experience will be onsite for the
entire engagement.