Statement on auditing standards, 035

              Statement on
Auditing Standards
Issued by the Auditing Standards Executive Committee
AICPA American Institute of
Certified Public Accountants
April 1981 35
Special Reports— Applying
Agreed- Upon Procedures
to Specified Elements,
Accounts, or Items of a
Financial Statement
( Supersedes Statement on Auditing, Standards No. 14, paragraphs 15- 17) 1
1. An accountant may accept an engagement in which the scope
is limited to applying to one or more specified elements, accounts,
or items of a financial statement agreed- upon procedures2 that are
1This Statement also amends SAS No. 26, Association With Financial Statements,
by deleting from the last sentence of paragraph 20 the words " as specified in
SAS No. 14, the financial statements of the entity may not accompany this
special report." Also, this Statement withdraws the auditing interpretation
" Understanding of Agreed- Upon Procedures," February 1980 ( AU section
9621.32-. 33), by incorporating the guidance of the interpretation into para­graph
2 of this Statement. The auditing interpretation entitled " Reports on En­gagements
Solely to Meet State Regulatory Examination Requirements," Octo­ber
1979 ( AU section 9621.15-. 16) is also withdrawn, and a footnote is added
to the end of SAS No. 14, paragraph 5 to state, " This form of reporting is appro­priate,
even though by law or regulation the accountant's report may be made
a matter of public record."
2Mere reading of a specific element, account, or item does not constitute a pro­cedure
sufficient to permit an accountant to report on the results of applying
agreed- upon procedures to one or more specified elements, accounts, or items
of a financial statement.
Copyright © 1981 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036
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