An agreed-upon procedure is a standard a company or client outlines when it hires an external party to perform an audit on a specific test or business process. The procedures, which are called audit standards, are designed and agreed upon by the entity conducting the audit, as well as any appropriate third parties.
These line of service covers:
- Verifying cash balances
- Checking security balances
- Income tax provisions
- Accounts receivable/payable processes
- Special review of loan portfolios
- Reviews of internal control and environmental management systems
- Royalty agreement compliance
- Employer compliance or payroll audit etc.