At the conclusion of the engagement, the CPA presents a summary of findings and, if appropriate, negative assurance concerning the matters being audited. Choosing specific areas to check is usually based on the owner's concerns or possible problems. For example, a store owner might feel that purchase orders are not being recorded properly or that the payroll system is inadequate. A developer might question the accounting control over budgeted project costs. After discussing these areas, the CPA and client must mutually understand the procedures to be followed.
Internal controls is another area that can be tested by an agreed-upon procedures audit.
After you and your CPA agree to the procedures, you need not give notice to your accounting or operational personnel in your company. A surprise audit can be fruitful and provide a real deterrent to employees who are not inclined to follow proper procedures. It may even uncover employees, otherwise unsuspected, who have converted funds or other assets to their own personal use. This has happened, and companies have literally been saved by surprise audits. Under the American Institute of Certified Public Accountant's professional standards, distribution of the final report is restricted to the parties involved.