Agreed-Upon Procedures

GAO reviewed whether the net excise tax collections and excise tax certifications reported by the Internal Revenue Service (IRS) for the fiscal year (FY) ended September 30, 1997, are supported by the underlying records.

GAO noted that: (1) this engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants (AICPA); (2) the procedures GAO agreed to perform included detailed tests of a sample of excise tax collection and refund transactions to check the validity of the transactions and their accurate accounting and reporting, a review of IRS excise tax certifications, and a review of key reconciliations of IRS to Department of the Treasury records; (3) GAO was not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the accompanying schedule of excise tax net collections; (4) GAO completed the agreed-upon procedures on February 11, 1998; (5) in performing the agreed-upon procedures, GAO conducted its work in accordance with the generally accepted government auditing standards which incorporate financial audit and attestation standards established by AICPA; and (6) these standards also provide guidance when performing and reporting the results of agreed-upon procedures.