Understanding Agreed-Upon Procedures (AOP) Engagements
Agreed-Upon Procedures (AOP) engagements are specialized assurance services where an auditor performs specific procedures agreed upon by the client and intended users. Unlike audits or reviews, AOP engagements focus on fact-based reporting rather than providing an overall assurance opinion.
1. No Opinion Issued
One of the key characteristics of an AOP engagement is that the auditor does not issue an opinion or conclusion. Instead, the auditor presents factual findings based on the agreed procedures, allowing stakeholders to draw their own conclusions.
2. Guided by Specific Frameworks
AOP engagements follow established guidance, which may include checklists or structured procedures similar to those used in ISO certification audits. The scope is predetermined by the client and may involve verifying financial data, compliance checks, or operational assessments.
3. A Fact-Based Approach
Since AOP engagements do not provide an opinion, they are useful when stakeholders need independent verification of specific information without a full audit or review. This makes AOP engagements suitable for areas such as:
- Compliance verification
- Due diligence reviews
- Grant or contract reporting
- Regulatory reporting
Conclusion
Agreed-Upon Procedures engagements provide a flexible and fact-based assurance service tailored to specific needs. While they do not include an auditor’s opinion, they help businesses and stakeholders obtain reliable, independent findings for decision-making and compliance purposes.
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