OAR 162-040-0002: Definitions

The following definitions describe terms within the context of their application to Municipal Audit Law. (1) Agreed-Upon Procedures (AUP): Agreed-upon procedures are a service, an attestation engagement, the objectives of which are to perform specific procedures over a municipality’s operations and compliance, and certain financial statement assertions, and issue a report that describes the procedures applied and the accountant’s findings, without providing an opinion or conclusion. AUP engagements may be performed in conjunction with a compilation of financial statements. (2) Financial statements prepared on the cash or modified cash basis of accounting are financial reporting frameworks (special purpose frameworks) other than GAAP and are permitted under municipal audit law.