Agreed Upon Procedures (AUP) refer to a type of audit engagement where an independent auditor performs specific procedures as agreed upon by the parties involved. Unlike a traditional audit that provides an opinion on financial statements, AUP results in a report detailing the procedures performed and the findings, without any opinion or assurance.
In finance and payment fields, AUPs are often used to assess compliance with regulations, internal controls, or financial processes. For example, a company may request an AUP to verify that its payment processing procedures comply with industry standards. Stakeholders, such as investors or regulatory bodies, utilize AUP reports to gain insights into specific areas of concern without the need for a full audit.
The relevance of AUP lies in its flexibility and specificity, allowing parties to tailor the scope to focus on particular risks or processes. This helps organizations maintain transparency, improve operations, and ensure accountability in financial activities.
