SAS No. 34 Engagements to Perform Agree-Upon Procedures Regarding Financial Information  


Issued by Auditing Standards Committee in Taiwan on 24 August, 1999.


The objective of an agreed-upon procedures engagement is for the auditor to carry out procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. As the auditor simply provides a report of the factual findings of agreed-upon procedures, no assurance is expressed.   

An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning individual items of financial data (for example, accounts payable, accounts receivable, purchases from related parties and sales and profits of a segment of an entity), a financial statement (for example, a balance sheet) or even a complete set of financial statements.   

Independence is not a requirement for agreed-upon procedures engagements; Where the auditor is not independent, a statement to that effect would be made in the report of factual findings.

The auditor should ensure with representatives of the entity and, ordinarily, other specified parties who will receive copies of the report of factual findings, that there is a clear understanding regarding the agreed procedures and the conditions of the engagement.       

The auditor should document matters which are important in providing evidence to support the report of factual findings, and evidence that the engagement was carried out in accordance with this Statement and the terms of the engagement.

The auditor should plan the work so that an effective engagement will be performed.

The auditor should carry out the procedures agreed upon and use the evidence obtained as the basis for the report of factual findings. The procedures applied in an engagement to perform agreed-upon procedures may include the following:

  • Inquiry and analysis.
  • Re-computation, comparison and other clerical accuracy checks.
  • Observation.
  • Inspection.
  • Obtaining confirmations.

The report on an agreed-upon procedures engagement needs to describe the purpose and the agreed-upon procedures of the engagement in sufficient detail to enable the reader to understand the nature and the extent of the work performed. The report of factual findings should contain:

  • Title;
  • Addressee (ordinarily the client who engaged the auditor to perform the agreed-upon procedures);
  • Identification of specific financial or non-financial information to which the agreed-upon procedures have been applied;
  • A statement that the procedures performed were those agreed upon with the recipient;
  • A statement that the engagement was performed in accordance with the Statement;
  • When relevant a statement that the auditor is not independent of the entity;
  • Identification of the purpose for which the agreed-upon procedures were performed;
  • A listing of the specific procedures performed;
  • A description of the auditor’s factual findings including sufficient details of errors and exceptions found;
  • Statement that the procedures performed do not constitute either an audit or a review and, as such, no assurance is expressed;
  • A statement that had the auditor performed additional procedures, an audit or a review, other matters might have come to light that would have been reported;
  • A statement that the report is restricted to those parties that have agreed to the procedures to be performed;
  • A statement (when applicable) that the report relates only to the elements, accounts, items or financial and non-financial information specified and that it does not extend to the entity’s financial statements taken as a whole;
  • Date of the report;
  • Auditor’s address; and
  • Auditor’s signature.

Effective date

This Statement is effective from 31 December, 1999.

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