Service plan example (Agreed Upon Procedures：AUP)
An agreed-upon procedures service is one in which a practitioner is engaged to issue a practitioner's report of findings based on agreed-upon procedures applied to subject matter for use by specified parties.
As the needs of a foreign parent company may vary widely, the nature, timing, and extent of the agreed-upon procedures may vary, as well. We will perform tailored procedures requested by a foreign parent company, depending on their interests.
The following table summarizes an example of Agreed upon procedures service for a foreign affiliated firm in Japan. Depending on organizational structure and human resources, a parent company can tailor what they test in regard to financial items of a affiliated firm in Japan.
| Items | Procedures (Example) | |
| 1 | Sales and Cost of Sales | Verification of the general ledger and the consistency with the final financial report |
| 2 | Sales and Cost of Sales | Confirmation of the integrity between the general ledger and the data generated by ×××’s enterprise system concerning Sales and Cost of Sales as of December 31, 20×× |
| 3 | Sales and Cost of Sales | Confirmation of the integrity between the data generated by ×××’s enterprise system summary documents and the related evidences (example: invoices etc.) concerning Sales and Cost of Sales as of December 31, 20×× (the total number of samples is 25 (2-3 samples per a month)) |
| 4 | Bank account | Match of bank account balances with Confirmations which Fukai received direct from Banks as of December 31, 20×× |
| 5 | Loan | Collection of the long-term loan account balance from Banks with Confirmations which Fukai received direct from Banks as of December 31, 20×× |
| 6 | Account receivables | Confirmation of the adequacy of the accounts receivable balance at the end of December 20××, and the existence or nonexistence of a doubtful receivable for over 6 months |
| 7 | Inventory | Reconcile the inventory count to the general ledger |
| 8 | Tax | Confirmation of payment status of tax |
| 9 | Tax | Confirmation of the integrity between the Balance Sheet and Profit and Loss Statement and the tax return on 20×× |
| 10 | Tax | Provide second opinions on tax treatments |
Agreed Upon Procedures (AUP) vs Audit (Assurance)
In an audit, practitioners are required to perform in accordance with the Audit Standard in order to express their opinion on financial statements. Consequently, procedures to be conducted tend to be significantly comprehensive. In contrast, Agreed Upon Procedures (AUP) can be tailored based on clients' specific needs.