A statutory audit produces an opinion under auditing standards. Agreed-upon procedures produce factual findings on a list the parties negotiate in advance. Banks financing a specific facility may only need confirmation that covenant ratios were calculated correctly from the trial balance. In that case, a full audit of every line item is often unnecessary.
The reverse is also true. Shareholders who rely on the entire statement of financial position need the breadth of an audit. Procedures that test only revenue and cash will not speak to inventory valuation or contingent liabilities.
When we receive a request from a lender’s checklist, we map each item to either audit work already planned or a separate procedures engagement. Mixing the two without a clear letter of engagement creates confusion about what assurance was given.
If you are unsure which engagement fits, send the third-party request letter with your inquiry. We will say plainly whether an audit, an interim review, or a short procedures report meets the requirement.