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Agreed-upon procedures

You may need a specific review of an area of your business – whether for your own benefit, for key stakeholders or for an external third party.

We’ll summarise our findings in an easy-to-review report and discuss any other observations that arise along the way.

This procedure can happen independently of your accounts preparation or at the same time. If you have a deadline, we’ll make sure we meet it.

As the agreed-upon procedures review is purely for your own benefit, you do not need to declare it in your accounts at Companies House. You are not obliged to share it with anyone if the matter under review is particularly sensitive.

Internal review

You may have internal reasons to request such a report.

Your business may have:

  • A high volume of low-value transactions or unusual transactions that could potentially conceal fraud
  • Outsourced some of its administration, and want an independent review of the quality of the work
  • Grown rapidly and need to scale up its systems & controls

You or your board may have concerns about the business, such as:

  • How robust is the sales ordering system?
  • Are there unnoticed cases where suppliers have been paid twice?
  • Is anything being missed in the operation of the VAT system?
  • Are all outward despatches of stock matched up with a sales invoice?
  • Are outsourced managing agents correctly running your property portfolio?
  • Have the figures for calculating key staff bonuses been misstated?

An internal review can be particularly useful if your organisation is just under the audit turnover threshold.

External review

You may need to provide certificates to third parties that have been verified by an independent accountant if you have, for example:

  • Grant monies which you need to demonstrate have been correctly spent
  • An ‘earn-out’ period where prior owners are paid based on future financial results
  • Turnover-based rent that you need to verify to your landlord (for retail businesses)
  • ATOL compliance requirements (for travel businesses)

Our clients who use agreed-upon procedures include:

  • An organisation taking part in R&D activity partially funded by Technology Strategy Board (TSB) grants, who need us to confirm to the TSB how the grant was spent
  • A large property group where we use sample-based tests to check the managing agents are collecting the correct rents, staying within the limits for unauthorised repairs and charging the correct fees
  • A retail group who need us to confirm their turnover to their landlord for the calculation of turnover-based rent

For more information or help from one of our audit specialists, please contact us using our enquiry form.