Agreed Upon Procedures

In complex business environments, a full statutory audit may not always address specific financial concerns or regulatory requirements. Agreed Upon Procedures (AUP) provide a focused solution where the auditor performs specific tests agreed upon by the entity and relevant third parties (such as banks, regulators, or investors) and reports on factual findings.

At AMAJ UAE, we conduct these engagements in accordance with International Standard on Related Services (ISRS 4400). As an auditor listed with major UAE banks and approved across key free zones (DMCC, DIFC, JAFZA), our reports carry the credibility and independence required by stakeholders.

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Our Services

Agreed Upon Procedures (AUP) engagements

AUP engagements are designed to verify specific financial data or operational processes without providing a general audit opinion. The users of the report draw their own conclusions based on the factual findings we present. This service is ideal for dispute resolution, banking compliance, or internal control assessments.

AMAJ assists clients with:

• Revenue Verification: Certifying turnover for malls/lessors or franchise agreements.

• Grant & Funding Verification: Confirming that funds received were utilized for the intended specific purposes.

• Due Diligence Support: performing specific checks on accounts receivable, inventory existence, or liability valuation during mergers and acquisitions.

• Bank Covenant Compliance: Verifying specific financial ratios required by lenders.

Escrow Account Review

For real estate developers in the UAE, strict regulations govern the management of off-plan project funds. Trust accounts (Escrow) must be maintained to ensure that investor funds are used solely for construction purposes.

AMAJ provides independent review services for Escrow accounts to ensure compliance with RERA (Real Estate Regulatory Agency) and other regulatory bodies:

• Cash Flow Verification: We verify that inflows from investors and outflows to contractors match the project progress.

• Regulatory Compliance: We ensure the movement of funds adheres to Law No. 8 of 2007 regarding Escrow Accounts for Real Estate Development in Dubai.

• Retention Verification: We confirm that required retention amounts are held back as per the project completion status.

Reserve Asset Review

Regulated entities—including insurance companies, financial institutions, and Owners Associations—are often required to maintain specific reserve assets to cover future liabilities, unearned premiums, or capital maintenance funds.

AMAJ conducts rigorous reviews of these reserve assets to ensure they meet solvency and regulatory standards:

• Existence & Ownership: We physically verify or confirm the existence of assets pledged as reserves and verify the legal ownership.

• Valuation Assessment: We review the valuation of these assets to ensure they are recorded at fair market value or compliant book value.

• Liquidity Analysis: We assess whether the reserve assets meet the liquidity requirements mandated by the relevant authority (such as the Central Bank or RERA) to ensure funds are available when needed.

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Why Trust AMAJ for AUP Engagements?

• Approved Auditor Status: We are approved auditors for DMCC, DIFC, DWC, and listed with major UAE banks, ensuring our reports are widely accepted.

• Objective Independence: As a member of AGN International, we adhere to strict ethical codes, ensuring our findings are unbiased and factual.

• Customized Scope: Unlike a standard audit, we tailor the scope of work precisely to the needs of the third party requesting the report.