Wiley Practitioner's Guide to GAAS 2022

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

• Technical Alert
• Scope
• Objectives of AU-C Section 501
• Definition of Term
• 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
• Illustrations—Investments in Securities and Derivative Instruments
• Requirements—Inventory Existence and Condition
  • Practice Alert
  • 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 ...