Audit Evidence—Specific Considerations for Selected Items
AU-C Section 501 *
Audit Evidence—Speciﬁc Considerations for
Source: SAS No. 122.
Effective for audits of ﬁnancial statements for periods ending on or
after December 15, 2012.
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.
.02 This section is effective for audits of ﬁnancial statements for periods
ending on or after December 15, 2012.
.03 The objective of the auditor is to obtain sufﬁcient appropriate audit
evidence regarding the
valuation of investments in securities and derivative instruments;
existence and condition of inventory;
completeness of litigation, claims, and assessments involving the
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.
Investments in Securities and Derivative Instruments
(Ref: par. .A1–.A3)...