To ensure in the reliability of some figures of financial information, the organization can offer a potential client or an interested third party to invite an independent audit company, which will study the matters which the organization and the potential client can be interested in by using the agreed-upon procedures. Two parties will be the users of the report: the organization and the potential client (third party), who is interested in this report.
According to the legislation, the agreed-upon procedures can be performed by an auditor in respect of certain financial information (for example, accounts receivable or payable, purchases from related parties, etc.), one of the financial statements or financial statements as a whole.
The purpose of the implementation of the agreed-upon procedures is the conduction of the procedures of an audit nature by the auditor, which had been agreed with the person, who contracted the provision of an audit-related services, and the third party, as well as the provision of the auditor’s report on the findings mentioned in implementation of agreed-upon procedures concerning the financial information.