Agreed upon procedure is an engagement where the client specifies procedures and the accountant agree to perform those procedures. An accountant may accept an engagement to apply agreed- upon procedures to financial Statement elements, where the scope of engagement is not sufficient to express an opinion, If the user assumes responsibility for sufficiency of the procedures, and the use of report is restricted to specified users.
In agreed upon procedure engagement auditor report on factual findings, and therefore no opinion is expressed.
In agreed upon procedure engagement auditor must write engagement letter to client and as in audit he must plan and collect sufficient evidence to support his factual findings.
Agreed upon procedure engagement is guided by International Standard on Related Services (ISRS) 4400.