Agreed Upon Procedures

Acquiring or selling a business and you want to ensure completeness and accuracy of the financials?
 Do you need to assess your internal accounting function? If so, AUP might be the engagement for you.
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From inspection, review, examine, fact-finding, to gaining important insights on specific components, area, and/or accounts of your entity, situations often call for a more precise approach. In these circumstances an “agreed-upon procedures” engagement can be a useful solution. Under such an arrangement we perform very specific work to cover your areas of concern in a laser-focused manner. This avoids carrying out unnecessary work to provide a much broader opinion and makes the scope of work for you entirely clear.

If you have any of the following situations, AUP might be what you need:

  • Acquiring or selling a business and need specific procedures for few accounts to ensure accuracy and completeness.
  • Need to examine/inspect your company’s financial statements and accounting
  • Verifying cash balances
  • Verifying debt balances
  • Royalty agreements compliance
  • Accounts receivable/payable verification

What we do

Because we’re only providing a report of the factual results of the engagement, no assurance is expressed. Instead, the users of the report assess the procedures and findings reported by the us and draw their own conclusions from the work. Some of the procedures performed in such engagements are as follows:


  • Confirming cash balance directly with the banks
  • Selecting samples and vouching to source documents (invoice, bills, agreements, etc).
  • Checking the addition of the trial balance of accounts payable prepared by the client at a specific date and comparing the total to the balance in the related general ledger account.
  • Obtaining suppliers’ statements or requesting suppliers to confirm balances owing at a specific date and comparing such statements or confirmations to the amounts in the trial balance. For amounts that do not agree, obtaining and reviewing reconciliations from the client.

If you are a small business owner required to have your financial statements prepared or compiled by an independent CPA, please contact us.






As a business owner and a mortgage broker/lender, you are reunited to have financial statements audit every year to be in compliance with state and NMLS rules and regulations and to be able to renew your license. Therefore, below are the most common questions about the mortgage brokers/lenders financials statements audits that we get asked from new brokers:


Q1: What are financial statements?


Financial statements are formal documents that provide a summary of a company’s financial activities and status. They typically include the balance sheet, income statement, cash flow statement, and statement of changes in equity. Check out our Financial statements services Financial statement requirements for mortgage brokers


Q2: What is a mortgage broker financial statement audit?

A mortgage broker financial statement audit is a comprehensive examination of the financial statements and records of a mortgage broker by an independent auditor. It ensures that the financial statements accurately reflect the financial position and performance of the mortgage broker. See  Financial Statements Audit and Review Requirements for Mortgage Brokers for NMLS Licensing


Q3: Why is a financial statement audit important for mortgage brokers?

A financial statement audit is important for mortgage brokers as it enhances transparency and credibility in their financial reporting. It provides assurance to lenders, investors, and other stakeholders that the financial statements are reliable and comply with accounting standards and regulations.


Q4: Who conducts a mortgage broker financial statement audit?

A mortgage broker financial statement audit is conducted by an independent auditing firm or certified public accountants specialized in auditing financial statements. The auditor must be objective and impartial in their assessment.


Q5: What does a mortgage broker financial statement audit involve?

During a mortgage broker financial statement audit, the auditor examines the mortgage broker’s financial records, transactions, internal controls, and accounting policies. The auditor verifies the accuracy and completeness of financial statements, identifies any irregularities or material misstatements, and provides an opinion on the fairness of the statements.


Q6: How long does a mortgage broker financial statement audit take?

The duration of a mortgage broker financial statement audit varies depending on the size and complexity of the business and the scope of the audit. Generally, it can take several weeks to a few months to complete, including planning, fieldwork, testing, and the issuance of the audit report.


Q7: What are the benefits of a mortgage broker financial statement audit?

A mortgage broker financial statement audit offers several benefits. It enhances the credibility and reliability of financial information, improves trust among lenders and investors, identifies weaknesses in internal controls, and helps prevent fraudulent activities. It also ensures compliance with accounting standards and regulatory requirements.


Q8: Can lenders access the audited financial statements of a mortgage broker?

Lenders often request audited financial statements from mortgage brokers as part of their due diligence process. Audited financial statements provide lenders with a reliable and independent assessment of the mortgage broker’s financial condition and stability.


Q9: Are there any consequences for mortgage brokers who do not conduct a financial statement audit?

While a financial statement audit may not always be legally required for mortgage brokers, not conducting one can have negative consequences. It may erode trust among lenders and investors, hinder access to financing, and raise questions about the accuracy and reliability of financial information.


Q10: How often should a mortgage broker undertake a financial statement audit?

The frequency of financial statement audits for mortgage brokers depends on various factors, such as regulatory requirements, industry best practices, and the size and complexity of the business. In general, auditors recommend conducting an audit annually to ensure accurate and up-to-date financial reporting.


Please note that while this information provides a general understanding of mortgage broker financial statement audits, it is recommended to consult with a financial professional or auditor for specific guidance related to individual situations. If you have any questions, please contact us.