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  • Submitted By: ellep
  • Date Submitted: 09/01/2014 10:06 AM
  • Category: Business
  • Words: 22272
  • Page: 90

Audit Evidence—Specific Considerations for Selected Items

393

AU-C Section 501 *

Audit Evidence—Specific Considerations for
Selected Items
Source: SAS No. 122.
Effective for audits of financial statements for periods ending on or
after December 15, 2012.

Introduction
Scope of This Section
.01 This section addresses specific considerations by the auditor in obtaining sufficient appropriate audit evidence, in accordance with section 330,
Performing Audit Procedures in Response to Assessed Risks and Evaluating
the Audit Evidence Obtained; section 500, Audit Evidence; and other relevant
AU-C sections, regarding certain aspects of (a) investments in securities and
derivative instruments; (b) inventory; (c) litigation, claims, and assessments
involving the entity; and (d) segment information in an audit of financial statements.

Effective Date
.02 This section is effective for audits of financial statements for periods
ending on or after December 15, 2012.

Objective
.03 The objective of the auditor is to obtain sufficient appropriate audit
evidence regarding the
a.

valuation of investments in securities and derivative instruments;

b.

existence and condition of inventory;

c.

completeness of litigation, claims, and assessments involving the
entity; and

d.

presentation and disclosure of segment information, in accordance with the applicable financial reporting framework.

*
This section has been codified using an "AU-C" identifier instead of an "AU" identifier. "AU-C" is
a temporary identifier to avoid confusion with references to existing "AU" sections, which will remain
in AICPA Professional Standards through 2013. The "AU-C" identifier will revert to "AU" in 2014, by
which time substantially all engagements for which the "AU" sections were still effective are expected
to be completed.

AU-C §501.03

394

Audit Evidence

Requirements
Investments in Securities and Derivative Instruments
(Ref: par. .A1–.A3)...

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