What are Agreed Upon Procedures?
Typically, a business owner is interested in having an independent Certified Public Accountant (CPA) firm, like Whalen & Company, CPAs, perform procedures related to specific financial elements to determine their accuracy or functionality. The CPA would be responsible for applying specific procedures, developed and agreed to prior to the commencement of the engagement, within the organization.
Examples of Agreed Upon Procedures engagements include:
- Testing of internal controls within an organization
- Application procedures to test accounts receivable, inventory, accounts payable, etc.
- Reconciliation of cash and aging of accounts receivable
- In connection with a merger or acquisition:
- Verify cash and securities
- Examine gross sales
Contact Whalen & Company, CPAs today to learn more!