|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.|
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.
Observing inventories. Being present when the inventory is counted and, by observation, tests, and inquiries, becoming satisfied about the following:
AU-C Section 501 does not include definitions.
Observation of inventories has been ...