Agreed-upon procedures (AUP) engagements are conducted in Cambodia to provide independent assurance on specific subject matters.

AUP engagements involve an agreement between the responsible party, the engaging party, and the practitioner, specifying the procedures to be performed and the reporting requirements. 

These engagements are typically tailored to meet the specific needs of the engaging party.

In Cambodia, AUP engagements can be utilized in various scenarios, such as financial audits, compliance reviews, due diligence assessments, and internal control evaluations.

Here are some of the various uses of AUPs:

• Financial reporting: AUPs can be used to provide assurance on the accuracy and completeness of financial information that is not part of a financial statement audit. This can be useful for investors, lenders, and other stakeholders who need assurance on information that is not covered by an audit.
• Compliance: AUPs can be used to verify compliance with laws and regulations. This can be useful for organizations that need to demonstrate compliance with government regulations or industry standards.
• Valuation: AUPs can be used to verify the accuracy of a valuation. This can be useful for organizations that need to determine the fair value of an asset or liability.
• Due diligence: AUPs can be used to conduct due diligence on a potential business partner or acquisition target. This can help to identify any potential risks or problems before the transaction is completed.
• Litigation support: AUPs can be used to provide support for a party in a legal proceeding. This can help establish facts or demonstrate compliance with a court order.
• Risk assessment: AUPs can be used to assess an organization’s risks. This helps identify areas where the organization is vulnerable and to develop plans to mitigate those risks.

AUPs can be a valuable tool for organizations needing assurance on information not part of a financial statement audit.

However, it is important to note that AUPs do not provide any level of assurance as an audit or review engagement. If an organization needs a high level of assurance, it should consider having an audit performed.

The auditor will then prepare a report on the findings of the AUP engagement. The report will typically include the following information:

• The procedures that were performed
• The findings of the procedures
• Any limitations on the scope of the engagement

The report will be provided to the client, who will then be responsible for using the information in the report as they see fit.

Here are some of the benefits of using AUPs:

• AUPs can provide assurance on information that is not part of a financial statement audit.
• AUPs can be used to verify compliance with laws and regulations.
• AUPs can be used to verify the accuracy of a valuation.
• AUPs can be a valuable tool for organizations that need assurance on information that is not part of a financial statement audit.
• AUPs can be less expensive and time-consuming than a full audit.

AUP engagements in Cambodia follow internationally recognized standards, such as the Cambodia International Standard on Related Services (“CISRS”) 4400 (Revised).

The practitioner performs the agreed-upon procedures, which can include inquiries, inspections, observations, confirmations, and analytical procedures. The objective is to obtain factual findings based on the agreed-upon procedures and report them to the engaging party.

AUP engagements in Cambodia are commonly used by organizations, government entities, and individuals who want an independent assessment of specific areas of interest or concern.

The flexibility of AUP engagements allows them to be tailored to meet the unique requirements and circumstances of each engagement.

Overall, the use of Agreed-Upon Procedures in Cambodia enables stakeholders to obtain independent assurance on specific subject matters and enhance transparency and accountability in various sectors.

In cases, your entity’s financial information is required to be verified in accordance with Cambodian International Standard on Related Services (“CISRS”) 4400 (Revised), as a  registered accounting and auditing firm in Cambodia, our professional team, whose has experience in performing Agreed-upon procedures (AUP) engagement for the financial institution, non-profit organization, and funding agencies, are able to deliver such services.