Auditing and Assurance Standards Council

Philippine Auditing Practice Statement 1003Ph

GUIDANCE IN DEALING WITH REPORTS
REQUIRED BY THE SEC RELATING TO
INCREASE IN AUTHORIZED CAPITAL STOCK
OF A CORPORATION

PAPS 1003Ph
PHILIPPINE AUDITING PRACTICE STATEMENT 1003Ph
GUIDANCE IN DEALING WITH REPORTS REQUIRED
BY THE SEC RELATING TO INCREASE IN AUTHORIZED
CAPITAL STOCK OF A CORPORATION
CONTENTS
Paragraph
Introduction…………………………………………………………………

1-2

Objective……………………………………………………………………

3

Types of Engagements that May be Performed……………………………..

4-14

Acceptance of an Engagement Relating to Increase in
Authorized Capital Stock………………………………………………..

15-16

Defining the Terms of an Engagement to Perform Agreed-Upon
Procedures……………………………………………………………….

17-20

Reporting on Agreed-Upon Procedures Engagements………………………

21-23

Wording of the Auditor’s Representation Letter to Accompany the Agreed-Upon Procedures Report…………………………………….

24-25

Effective Date………………………………………………………………..

26

Appendix 1:

Required SEC Procedures Relating to an Application for
Increase in Authorized Capital Stock as Contained in
SEC Memorandum Circular No. 6, Series of 2008

Appendix 2:

Example Auditor’s Reports on Agreed-Upon
Procedures Engagements

Appendix 3:

Illustrative Auditor’s Representation Letters

2

PAPS 1003Ph

Philippine Auditing Practice Statements (PAPS or Statements) are issued by the Auditing
Standards and Assurance Council (AASC) to provide practical assistance to auditors in implementing the Philippine Standards on Auditing (PSAs) or to promote good practice.
Statements do not have the authority of PSAs.
This Statement does not establish any new basic principles or essential procedures; its purpose is to assist auditors, and to develop good practice, by providing guidance on the application of the PSAs