Wiley Practitioner's Guide to GAAS 2020

16AU-C 501 Audit Evidence—Specific Considerations for Selected Items

Scope

Objective of AU-C Section 501

Requirements—Investments in Securities and Derivative Instruments

Required Risk Assessment in Planning

Assessing Inherent Risk for an Assertion About a Derivative Instrument or a Security

Control Risk Assessment

The Effect of a Service Organization on Audit Approaches and Procedures for Securities and Derivative Instruments

Designing Auditing Procedures

Importance of Identifying and Testing Controls

Designing Substantive Procedures Based on Risk Assessment

Completeness Assertion for Derivatives

Valuation

Additional Considerations Related to Gathering Evidential Matter about Hedging Activities

Special Skill or Knowledge Might Be Needed to Plan or Perform Auditing Procedures Related to Derivatives or Securities

AU-C 501 Illustrations—Investments in Securities and Derivative Instruments

Requirements—Inventory Existence and Condition

Timing and Extent of Inventory Observation

Inventory Held by a Third Party

Steps in the Observation of Inventory

Planning the Physical Inventory

Taking the Physical Inventory

Outside Inventory-Taking Firm

Inventory Observation Checklist

AU-C 501 Illustrations—Inventory Observation

Requirements—Litigation, Claims, and Assessments Involving the Entity

Accounting Considerations

Audit Procedures Other Than Inquiry of Lawyers

Inquiry of Client’s Lawyer

Evaluation of Lawyer’s Response

Refusal of Attorney to Respond

Lawyer on Board of Directors

Litigation ...