SERVICE OF IMPLEMENTATION OF PRIOR AGREEMENT PROCEDURES
Principles of service performance
FAT contracts to perform pre-agreed procedures to perform certain checks on individual items of the financial statements (e.g. trade payables, trade receivables, acquisitions from related parties, the revenue and profit of a segment of an entity), a single financial statement (e.g. balance sheet) or a complete set of financial statements.
The ethical principles that govern FAT’s professional responsibilities in performing this type of service contract include:
(a) Integrity;
(b) Objectivity;
(c) Professional competence and prudence;
(d) Security;
(e) Professional personality.
FAT performs pre-agreed procedures and uses the evidence collected as the basis for reporting of factual findings.
Report on actual findings
Report of factual findings issued by FAT for financial information audit service contracts on the basis of prior agreement procedures.
Reporting of factual findings is limited to parties that have agreed on procedures performed because the other parties are unaware of the rationale for those procedures and may misinterpret the results.
The FAT fact-finding report describes in sufficient detail the purpose and pre-agreed procedures of the contract so that the reader of the report can understand the content and scope of the work performed. The FAT fact-finding report includes the following main contents:
- Scope of financial or non-financial information for which prior agreement procedures apply;
- Indicate that the procedures taken are those agreed upon with the party receiving the report;
- Indicate the work performed in accordance with the provisions and guidelines of the current Vietnamese Standards and other relevant standards, if any;
- When not “independent” of the customer unit (or the auditee if the customer is not the audited entity), FAT will state;
- Determine the purpose of the prior agreement procedures performed;
- List of specific procedures performed;
- Description of actual FAT findings including full details of errors and detected exceptions;
- State that the procedures performed were not those of an audit or review and therefore FAT does not make any warranties;
- Indicate if FAT performed further procedures, audits or reviews that would have detected and reported other results;
- Specify that the report of factual findings will only be sent to the parties that have mutually agreed on the procedures to be taken;
- State (if necessary) the statement of factual findings relating only to identified financial or non-financial elements, accounts, items, or information and not to the financial statements as a whole. unit;