Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

AU 331: Inventories

AU-C 501: Audit Evidence—Specific Considerations for Selected Items

AU EFFECTIVE DATE AND APPLICABILITY

Original Pronouncements	Statements on Auditing Statements (SASs) 1, 43, and 67.
Effective Date	These statements are now effective.
Applicability	Audits of financial statements in accordance with generally accepted auditing standards (GAAS) and special reports involving inventories.

AU-C EFFECTIVE DATE AND SUMMARY OF CHANGES

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.

AU-C Section 501 combines the requirements and guidance from extant AU Section 331, Inventories; 332, Auditing Derivative Instruments, Hedging Activities and Investments in Securities; and 337, Inquiry of a Client’s Lawyer concerning Litigation, Claims, and Assessments.

AU-C Section 501 does not change the extant requirements of AU 331 in any significant manner.

AU DEFINITIONS OF TERMS

Observing inventories. Being present when the inventory is counted and, by observation, tests, and inquiries, becoming satisfied about the following:

1. The effectiveness of the methods of counting the inventory

2. The extent of reliance that may be placed on the client’s representations about the quantities and physical condition of the inventories

AU-C DEFINITIONS OF TERMS

AU-C Section 501 does not include definitions.

OBJECTIVES OF AU SECTION 331

Observation of inventories has been ...