Profesor

INTERNATIONAL STANDARD ON AUDITING 501

AUDIT EVIDENCE—SPECIFIC CONSIDERATIONS
FOR SELECTED ITEMS

(Effective for audits of financial statements for periods
beginning on or after December 15, 2009)

CONTENTS

Paragraph

Introduction
Scope of this ISA ........................................................................................ 1
Effective Date............................................................................................. 2
Objective .................................................................................................... 3
Requirements
Inventory ..................................................................................................... 4-8
Litigation and Claims................................................................................. 9-12
Segment Information .................................................................................. 13
Application and Other Explanatory Material
Inventory ..................................................................................................... A1-A16
Litigation and Claims................................................................................. A17-A25

Segment Information .................................................................................. A26-A27

International Standard on Auditing (ISA) 501, “Audit Evidence—Specific
Considerations for Selected Items” should be read in conjunction with ISA 200,
“Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance withInternational Standards on Auditing.”

AUDITING
AUDIT EVIDENCE—SPECIFIC CONSIDERATIONS
FOR SELECTED ITEMS

Introduction
Scope of this ISA

1. This International Standard on Auditing (ISA) deals with specific
considerations by the auditor in obtaining sufficient appropriate audit evidence
in accordance with ISA 330,1 ISA 5002 and other relevant ISAs, with respect to
certain aspects ofinventory, litigation and claims involving the entity, and
segment information in an audit of financial statements.
Effective Date

2. This ISA is effective for audits of financial statements for periods beginning on
or after December 15, 2009.
Objective

3. The objective of the auditor is to obtain sufficient appropriate audit evidence
regarding the:

(a) Existence andcondition of inventory;
(b) Completeness of litigation and claims involving the entity; and
(c) Presentation and disclosure of segment information in accordance with the applicable financial reporting framework.
Requirements
Inventory

4. If inventory is material to the financial statements, the auditor shall obtain
sufficient appropriate audit evidence regarding the existence and conditionof
inventory by:

(a) Attendance at physical inventory counting, unless impracticable, to: (Ref:
Para. A1-A3)
(i) Evaluate management’s instructions and procedures for recording
and controlling the results of the entity’s physical inventory
counting; (Ref: Para. A4)

(ii) Observe the performance of management’s count procedures;
(Ref: Para. A5)
(iii) Inspect theinventory; and (Ref: Para. A6)
(iv) Perform test counts; and (Ref: Para. A7-A8)
1 ISA 330, “The Auditor’s Responses to Assessed Risks.”
2 ISA 500, “Audit Evidence.”

AUDIT EVIDENCE—SPECIFIC CONSIDERATIONS
FOR SELECTED ITEMS

(b) Performing audit procedures over the entity’s final inventory records to
determine whether they accurately reflect actual inventory count results.

5. Ifphysical inventory counting is conducted at a date other than the date of the
financial statements, the auditor shall, in addition to the procedures required by
paragraph 4, perform audit procedures to obtain audit evidence about whether
changes in inventory between the count date and the date of the financial
statements are properly recorded. (Ref: Para. A9-A11)


6. If the auditor is...