Ministry of Finance, Practice of Independent Auditing Announcement No.9: Performance of Agreed-upon Procedures Regarding Financial Information

Issued: March 5 2002
Effective: July 1 2002
Applicability: "Performance of agreed-upon procedures regarding financial information" involves a registered accountant, upon engagement by a specified party, in performing an agreed-upon procedure concerning specified financial data or a financial statement or a complete set of financial statements and in reporting on the performed procedure and its result (Article 2).

Main contents: When a registered accountant is engaged by a specified party to perform agreed-upon procedures regarding financial information, it is the specified party's responsibility to finally determine the adequacy and appropriateness of the agreed-upon procedures (Article 3). In accepting the engagement, the accounting firm shall enter into an engagement letter with the specified party (Article 7). Among other things, the engagement letter shall state the nature of the engagement, including the fact that the procedures to be performed will not constitute an audit or a review and that accordingly no audit opinion or review comment will be expressed (Article 8). The accountant shall document in the working draft the process and the findings of the performance of the agreed-upon procedures (Article 12). The accountant shall issue a report on the basis of the evidence obtained in the performance of the agreed-upon procedures (Article 13). The report shall state, among other things, that the report is to be used only by the specified party, that (when applicable) the report, relating only to the financial information specified, is not to be extended to the financial statements taken as a whole, and that, had the accountant performed additional procedures, an audit or a review, other matters might have come to light that would have been reported (Article 14).
Related legislation: Independent Audits Basic Guidelines