ISA 501 – Audit evidence - specific consideration for selected items

 ISA 501 deals with specific considerations by the auditor in obtaining sufficient appropriate audit evidence in respect to certain aspects of inventory, litigation and claims involving the entity, and segment information in an audit of financial statements.

The ISA defines the audit procedures that should be performed in obtaining audit evidence regarding:

(a) Existence and condition 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.

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