INTERNATIONAL STANDARD ON AUDITING
(UK AND IRELAND) 501
AUDIT EVIDENCE – ADDITIONAL CONSIDERATIONS
FOR SPECIFIC ITEMS
CONTENTS
Paragraph
Introduction ...........................................................................................
1-3
Part A: Attendance at Physical Inventory Counting .............................
4 - 18-7
Part B: Superceded by ISA (UK and Ireland) 505 (paragraphs 19-30 have
been deleted)
Part C: Procedures Regarding Litigation and Claims ...........................
31 - 37
Part D: Valuation and Disclosure of Long-term Investments ...............
38 - 41
Part E: Segment Information ................................................................
42 - 45
Effective Date ........................................................................................
45-1
International Standard on Auditing (UK and Ireland) (ISA (UK and Ireland))
501, “Audit Evidence—Additional Considerations for Specific Items” should
be read in the context of the Auditing Practices Board’s Statement “The
Auditing Practices Board – Scope and Authority of Pronouncements
(Revised)” which sets out the application and authority of ISAs (UK and
Ireland).
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ISA (UK and Ireland) 501
Introduction
1.
The purpose of this International Standard on Auditing (UK and Ireland)
(ISA (UK and Ireland)) is to establish standards and provide guidance
additional to that contained in ISA (UK and Ireland) 500, “Audit Evidence”
with respect to certain specific financial statement account balances and
other disclosures.
1-1.
This ISA (UK and Ireland) uses the terms ‘those charged with governance’
and ‘management’. The term ‘governance’ describes the role of persons
entrusted with the supervision, control and direction of an entity.
Ordinarily, those charged with governance are accountable for ensuring that
the entity achieves its objectives, and for the quality of its financial
reporting and reporting to interested parties. Those charged with
governance include management only when they perform such functions.
1-2.
In the UK and Ireland, those charged with governance include the directors
(executive and non-executive) of a company or other body, the members of
an audit committee where one exists, the partners, proprietors, committee of
management or trustees of other forms of entity, or equivalent persons
responsible for directing the entity’s affairs and preparing its financial
statements.
1-3.
‘Management’ comprises those persons who perform senior managerial
functions.
1-4.
In the UK and Ireland, depending on the nature and circumstances of the
entity, management may include some or all of those charged with
governance (e.g. executive directors). Management will not normally
include non-executive directors.
2.
Application of the standards and guidance provided in this ISA (UK and
Ireland) will assist the auditor in obtaining audit evidence with respect to
the specific financial statement account balances and other disclosures
addressed.
3.
This ISA (UK and Ireland) comprises the following parts:
2
(a)
Attendance at Physical Inventory Counting
(b)
Superceded by ISA (UK and Ireland) 505—Part B has been deleted.
(c)
Inquiry Regarding Litigation and Claims
ISA (UK and Ireland) 501
(d)
Valuation and Disclosure of Long-term Investments
(e)
Segment Information
Part A: Attendance at Physical Inventory Counting
4.
Management1 ordinarily establishes procedures under which inventory is
physically counted at least once a year to serve as a basis for the preparation
of the financial statements or to ascertain the reliability of the perpetual
inventory system.
4-1.
In accordance with ISA (UK and Ireland) 315, “Understanding the Entity
and its Environment and Assessing the Risks of Material misstatement” the
auditor uses professional judgment to assess the risks of material
misstatement. Risk factors relating to the existence assertion in the context
of the audit of inventory include the:
1
y
Reliability of accounting and inventory recording systems including,
in relation to work in progress, the systems that track location,
quantities and stages of completion.
y
Timing of physical inventory counts relative to the year-end date, and
the reliability of records used in any ‘roll-forward’ of balances.
y
Location of inventory, including inventory on ‘consignment’ and
inventory held at third-party warehouses.
y
Physical controls over the inventory, and its susceptibility to theft or
deterioration.
y
Objectivity, experience and reliability of the inventory counters and
of those monitoring their work.
y
The degree of fluctuation in inventory levels.
y
Nature of the inventory, for example whether specialist knowledge is
needed to identify the quantity, quality and/or identity of inventory
items.
y
Difficulty in carrying out the assessment of quantity, for example
whether a significant degree of estimation is involved.
In the UK and Ireland, those charged with governance are responsible for the preparation and
presentation of the financial statements.
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ISA (UK and Ireland) 501
4-2.
When planning the audit, the auditor also assesses the risk of material
misstatements due to fraud. Based on this risk assessment, the auditor
designs audit procedures so as to have a reasonable expectation of detecting
material misstatements arising from fraud. Fraudulent activities which can
occur in relation to inventory include:
y
‘False sales’ involving the movement of inventory still owned by the
entity to a location not normally used for storing inventory.
y
Movement of inventory between entity sites with physical inventory
counts at different dates.
y
The appearance of inventory and work in progress being
misrepresented so that they seem to be of a higher value/greater
quantity.
y
The application of inappropriate estimating techniques.
y
Inventory count records prepared during physical inventory counts
deliberately being incorrectly completed or altered after the event.
y
Additional (false) inventory count records being added to those
prepared during the count.
5.
When inventory is material to the financial statements, the auditor
should obtain sufficient appropriate audit evidence regarding its
existence and condition by attendance at physical inventory counting
unless impracticable. The auditor’s attendance serves as a test of controls
or substantive procedure over inventory depending on the auditor’s risk
assessment and planned approach. Such attendance enables the auditor to
inspect the inventory, to observe compliance with the operation of
management’s procedures for recording and controlling the results of the
count and to provide audit evidence as to the reliability of management’s
procedures.
5-1.
The principal sources of evidence relating to the existence of inventory are:
4
(a)
Evidence from audit procedures which confirm the reliability of the
accounting records upon which the amount in the financial statements
is based;
(b)
Evidence from tests of the operation of internal controls over
inventory, including the reliability of inventory counting procedures
applied by the entity; and
ISA (UK and Ireland) 501
(c)
Substantive evidence from the physical inspection tests undertaken by
the auditor.
6.
If unable to attend the physical inventory count on the date planned
due to unforeseen circumstances, the auditor should take or observe
some physical counts on an alternative date and, when necessary,
perform audit procedures on intervening transactions.
7.
Where attendance is impracticable, due to factors such as the nature
and location of the inventory, the auditor should consider whether
alternative procedures provide sufficient appropriate audit evidence of
existence and condition to conclude that the auditor need not make
reference to a scope limitation. For example, documentation of the
subsequent sale of specific inventory items acquired or purchased prior to
the physical inventory count may provide sufficient appropriate audit
evidence.
8.
In planning attendance at the physical inventory count or the alternative
procedures, the auditor considers the following:
8-1.
y
The risks of material misstatement related to inventory.
y
The nature of the internal control related to inventory.
y
Whether adequate procedures are expected to be established and
proper instructions issued for physical inventory counting.
y
The timing of the count.
y
The locations at which inventory is held.
y
Whether an expert’s assistance is needed.
The effectiveness of the auditor’s attendance at a physical inventory count
is increased by the use of audit staff who are familiar with the entity’s
business and where advance planning has been undertaken. Planning
procedures include:
y
Performing analytical procedures, and discussing with management
any significant changes in inventory over the year and any problems
with inventory that have recently occurred, for example unexpected
‘stock-out’ reports and negative inventory balances.
y
Discussing inventory counting arrangements and instructions with
management.
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ISA (UK and Ireland) 501
y
Familiarisation with the nature and volume of the inventory, the
identification of high value items, the method of accounting for
inventory and the conditions giving rise to obsolescence.
y
Assessing the implications of the locations at which inventory is held
for inventory control and recording.
y
Considering the quantity and nature of work in progress, the quantity
of inventory held by third parties, and whether expert valuers or
inventory counters will be engaged (further guidance on these issues
is set out in paragraphs 8-2 and 8-3 below).
y
Reviewing internal control relating to inventory, so as to identify
potential areas of difficulty (for example cut-off).
y
Considering any internal audit involvement, with a view to deciding
the reliance which can be placed on it.
y
Considering the results of previous physical inventory counts made
by the entity.
y
Reviewing the auditor’s working papers for the previous year.
8-2.
Prior to attending a physical inventory count, the auditor establishes
whether expert help, such as that provided by a quantity surveyor, needs to
be obtained by management to substantiate quantities, or to identify the
nature and condition of the inventories, where they are very specialised. In
cases where the entity engages a third party expert the auditor assesses, in
accordance with ISA (UK and Ireland) 620 “Using the Work of an Expert”,
the objectivity and professional qualifications, experience and resources of
the expert engaged to carry out this work, and also the instructions given to
the expert.
8-3.
Management may from time to time appoint inventory counters from
outside the entity, a practice common for inventory at, for example, farms,
petrol stations and public houses. The use of independent inventory
counters does not eliminate the need for the auditor to obtain audit evidence
as to the existence of inventory. In addition, as well as obtaining satisfaction
as to the competence and objectivity of the independent inventory counters,
the auditor considers how to obtain evidence as to the procedures followed
by them to ensure that the inventory count records have been properly
prepared. In this connection, the auditor has regard to the relevant guidance
set out in ISA (UK and Ireland) 402, “Auditor’s Considerations Relating to
Entities Using Service Organizations”.
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ISA (UK and Ireland) 501
9.
When the quantities are to be determined by a physical inventory count and
the auditor attends such a count, or when the entity operates a perpetual
system and the auditor attends a count one or more times during the year,
the auditor would ordinarily observe count procedures and perform test
counts.
9-1.
The nature of the auditor’s procedures during their attendance at a physical
inventory count will depend upon the results of the assessment of risks of
material misstatements carried out in accordance with ISA (UK and Ireland)
315. In cases where the auditor decides to place reliance on accounting
systems and internal controls, the auditor attends a physical inventory count
primarily to obtain evidence regarding the design and operating
effectiveness of management procedures for confirming inventory
quantities.
9-2.
Where entities maintain detailed inventory records and check these by
regular test counts the auditor performs audit procedures designed to
confirm whether management:
(a)
Maintains adequate inventory records that are kept up-to-date;
(b)
Has satisfactory procedures for inventory counting and test-counting;
and
(c)
Investigates and corrects all material differences between the book
inventory records and the physical counts.
The auditor attends a physical inventory count to gain assurance that the
inventory checking as a whole is effective in confirming that accurate
inventory records are maintained. If the entity’s inventory records are not
reliable the auditor may need to request management to perform alternative
procedures which may include a full count at the year end.
9-3.
In entities that do not maintain detailed inventory records the quantification
of inventory for financial statement purposes is likely to be based on a full
physical count of all inventory held at a date close to the company’s year
end. In such circumstances the auditor will consider the date of the physical
inventory count recognising that the evidence of the existence of inventory
provided by the inventory count is greater when the inventory count is
carried out at the end of the financial year. Physical inventory counts
carried out before or after the year end may also be acceptable for audit
purposes provided the auditor is satisfied that the records of inventory
movements in the intervening period are reliable.
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ISA (UK and Ireland) 501
10.
If the entity uses procedures to estimate the physical quantity, such as
estimating a coal pile, the auditor would need to be satisfied regarding the
reasonableness of those procedures.
11.
When inventory is situated in several locations, the auditor would consider
at which locations attendance is appropriate, taking into account the
materiality of the inventory and the risk of material misstatement at
different locations.
12.
The auditor would review management’s instructions regarding:
(a)
The application of control activities, for example, collection of used
stocksheets, accounting for unused stocksheets and count and recount procedures;
(b)
Accurate identification of the stage of completion of work in
progress, of slow moving, obsolete or damaged items and of
inventory owned by a third party, for example, on consignment; and
(c)
Whether appropriate arrangements are made regarding the movement
of inventory between areas and the shipping and receipt of inventory
before and after the cutoff date.
12-1.
The auditor examines the way the physical inventory count is organised
and evaluates the adequacy of the client’s instructions for the physical
inventory count. Such instructions, preferably in writing, should cover all
phases of the inventory counting procedures, be issued in good time and be
discussed with the person responsible for the physical inventory count to
check that the procedures are understood and that potential difficulties are
anticipated. If the instructions are found to be inadequate, the auditor seeks
improvements to them.
13.
To obtain audit evidence that management’s control activities are
adequately implemented, the auditor would observe employees’ procedures
and perform test counts. When performing test counts, the auditor performs
procedures over both the completeness and the accuracy of the count
records by tracing items selected from those records to the physical
inventory and items selected from the physical inventory to the count
records. The auditor considers the extent to which copies of such count
records need to be retained for subsequent audit procedures and
comparison.
13-1.
If the manner of carrying out the inventory count or the results of the testcounts are not satisfactory, the auditor immediately draws the matter to the
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ISA (UK and Ireland) 501
attention of the management supervising the inventory count and may have
to request a recount of part, or all of the inventory.
13-2.
When carrying out test counts, the auditor gives particular consideration to
those inventory items which the auditor believes to have a high value either
individually or as a category of inventory. The auditor includes in the audit
working papers items for any subsequent testing considered necessary, such
as copies of (or extracts from) inventory count records and details of the
sequence of those records, and any differences noted between the records
and the physical inventory counted.
13-3
The auditor determines whether the procedures for identifying damaged,
obsolete and slow moving stock operate properly. The auditor obtains (from
observation and by discussion e.g. with storekeepers and inventory
counters) information about the inventory condition, age, usage and, in the
case of work in progress, its stage of completion. Further, the auditor
ascertains that stock held on behalf of third parties is separately identified
and accounted for.
14.
The auditor also considers cutoff procedures including details of the
movement of inventory just prior to, during and after the count so that the
accounting for such movements can be checked at a later date.
14-1.
The auditor considers whether management has instituted adequate cut-off
procedures, i.e. procedures intended to ensure that movements into, within
and out of inventory are properly identified and reflected in the accounting
records in the correct period. The auditor’s procedures during the inventory
count will depend on the manner in which the year end inventory value is to
be determined. For example, where inventory is determined by a full count
and evaluation at the year end, the auditor tests the arrangements made to
identify inventory that corresponds to sales made before the cut-off point
and the auditor identifies goods movement documents for reconciliation
with financial records of purchases and sales. Alternatively, where the full
count and evaluation is at an interim date and year end inventory is
determined by updating such valuation by the cost of purchases and sales,
the auditor performs appropriate procedures during attendance at the
physical inventory count and in addition tests the financial cut-off
(involving the matching of costs with revenues) at the year end.
15.
For practical reasons, the physical inventory count may be conducted at a
date other than period end. This will ordinarily be adequate for audit
purposes only when the entity has designed and implemented controls over
changes in inventory. The auditor would determine whether, through the
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ISA (UK and Ireland) 501
performance of appropriate audit procedures, changes in inventory between
the count date and period end are correctly recorded.
16.
When the entity operates a perpetual inventory system which is used to
determine the period end balance, the auditor would evaluate whether,
through the performance of additional procedures, the reasons for any
significant differences between the physical count and the perpetual
inventory records are understood and the records are properly adjusted.
17.
The auditor performs audit procedures over the final inventory listing to
determine whether it accurately reflects actual inventory counts.
18.
When inventory is under the custody and control of a third party, the auditor
would ordinarily obtain direct confirmation from the third party as to the
quantities and condition of inventory held on behalf of the entity.
Depending on materiality of this inventory the auditor would also consider
the following:
y
The integrity and independence of the third party.
y
Observing, or arranging for another auditor to observe, the physical
inventory count.
y
Obtaining another auditor’s report on the adequacy of the third
party’s internal control for ensuring that inventory is correctly
counted and adequately safeguarded.
y
Inspecting documentation regarding inventory held by third parties,
for example, warehouse receipts, or obtaining confirmation from
other parties when such inventory has been pledged as collateral.
y
Testing the owner’s procedures for investigating the custodian and
evaluating the custodian’s performance.
y
The guidance set out in ISA (UK and Ireland) 402.
18-1.
The auditor’s working papers include details of the auditor’s observations
and tests (for example, of physical quantity, cut-off date and controls over
inventory count records), the manner in which points that are relevant and
material to the inventory being counted or measured have been dealt with
by the entity, instances where the entity’s procedures have not been
satisfactorily carried out and the auditor’s conclusions.
18-2.
Although the principal reason for attendance at a physical inventory count
is usually to obtain evidence to substantiate the existence of the inventory,
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ISA (UK and Ireland) 501
attendance can also enhance the auditor’s understanding of the business by
providing an opportunity to observe the production process and/or business
locations at first hand and providing evidence regarding the completeness
and valuation of inventory and the entity’s internal control. Matters that the
auditor may wish to observe whilst attending a physical inventory count
include:
Understanding the business
y
The production process.
y
Evidence of significant pollution and environmental damage.
y
Unused buildings and machinery.
Completeness and valuation of inventory
y
Physical controls.
y
Obsolete inventory (for example goods beyond their sale date).
y
Scrap, and goods marked for re-work.
y
Returned goods.
Internal control
18-3.
y
Exceptions identified by the production process (for example missing
work tickets).
y
The operation of ‘shop-floor’ disciplines regarding the inputting of
data such as inventory movements into the computer systems.
Some entities use computer-assisted techniques to perform inventory
counts; for example hand held scanners can be used to record inventory
items which update computerised records. In some situations there are no
stock-sheets, no physical count records, and no paper records available at
the time of the count. In these circumstances the auditor considers the IT
environment surrounding the inventory count and considers the need for
specialist assistance when evaluating the techniques used and the controls
surrounding them. Relevant issues involve systems interfaces, and the
controls over ensuring that the computerised inventory records are properly
updated for the inventory count information.
The auditor considers the following aspects of the physical inventory count:
(a)
How the test counts (and double counts where two people are
checking) are recorded;
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ISA (UK and Ireland) 501
(b)
How differences are investigated before the computerised inventory
records are updated for the counts; and
(c)
How the computerised inventory records are updated, and how
inventory differences are recorded.
After the Physical Inventory Count
18-4.
After the physical inventory count, the matters recorded in the auditor’s
working papers at the time of the count or measurement, including apparent
instances of obsolete or deteriorating inventory, are followed up. For
example, details of the last serial numbers of goods inwards and outwards
records and of movements during the inventory count may be used in order
to check cut-off. Further, copies of (or extracts from) the inventory count
records and details of test counts, and of the sequence of inventory count
records may be used to check that the results of the count have been
properly reflected in the accounting records of the entity.
18-5.
Where appropriate, the auditor considers whether management has
instituted procedures to ensure that all inventory movements between the
observed inventory count and the period end have been adjusted in the
accounting records, and the auditor tests these procedures to the extent
considered necessary to address the assessed risk of material misstatement.
In addition, the auditor follows up all queries and notifies senior
management of serious problems encountered during the physical inventory
count.
18-6.
In conclusion, the auditor considers whether attendance at the physical
inventory count has provided sufficient reliable audit evidence in relation to
relevant assertions (principally existence) and, if not, the other procedures
that should be performed.
Work in Progress
18-7.
12
Management may place substantial reliance on internal controls designed to
ensure the completeness and accuracy of records of work in progress. In
such circumstances there may not be a physical inventory count which can
be attended by the auditor. Nevertheless, inspection of the work in progress
may assist the auditor in understanding the entity’s control systems and
processes. It will also assist the auditor in planning further audit procedures,
and it may also help on such matters as the determination of the stage of
completion of construction or engineering work in progress. For this
purpose, the auditor identifies the accounting records that will be used by
ISA (UK and Ireland) 501
management to produce the work in progress figure in the year-end
accounts and, where unfinished items are uniquely identifiable (for example
by reference to work tickets or labels), the auditor physically examine items
to obtain evidence that supports the recorded stage of completion. In some
cases, for example in connection with building projects, photographic
evidence can also be useful evidence as to the state of work in progress at
the date of the physical inventory count, particularly if provided by
independent third parties or the auditor.
Part B: Superceded by ISA (UK and Ireland) 505 (paragraphs
19-30 have been deleted).
Part C: Procedures Regarding Litigation and Claims
31.
Litigation and claims involving an entity may have a material effect on the
financial statements and thus may be required to be disclosed and/or
provided for in the financial statements.
32.
The auditor should carry out audit procedures in order to become
aware of any litigation and claims involving the entity which may result
in a material misstatement of the financial statements. Such procedures
would include the following:
33.
2
y
Make appropriate inquiries of management2 including obtaining
representations.
y
Review minutes of those charged with governance and
correspondence with the entity’s legal counsel.
y
Examine legal expense accounts.
y
Use any information obtained regarding the entity’s business
including information obtained from discussions with any in-house
legal department.
When the auditor assesses a risk of material misstatement regarding
litigation or claims that have been identified or when the auditor
believes they may exist, the auditor should seek direct communication
with the entity’s legal counsel. Such communication will assist in
obtaining sufficient appropriate audit evidence as to whether potentially
material litigation and claims are known and management’s1 estimates of
In the UK and Ireland the auditor makes appropriate enquiries of those charged with governance.
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ISA (UK and Ireland) 501
the financial implications, including costs, are reliable. When the auditor
determines that the risk of material misstatement is a significant risk, the
auditor evaluates the design of the entity’s related controls and determines
whether they have been implemented. Paragraphs 108-114 of ISA (UK and
Ireland) 315, “Understanding the Entity and Assessing the Risks of Material
Misstatement” provides further guidance on the determination of significant
risks.
34.
The letter, which should be prepared by management3 and sent by the
auditor, should request the entity’s legal counsel to communicate
directly with the auditor. When it is considered unlikely that the entity’s
legal counsel will respond to a general inquiry4, the letter would ordinarily
specify the following:
y
A list of litigation and claims.
y
Management’s1 assessment of the outcome of the litigation or claim
and its estimate of the financial implications, including costs
involved.
y
A request that the entity’s legal counsel confirm the reasonableness of
management’s assessments and provide the auditor with further
information if the list is considered by the entity’s legal counsel to be
incomplete or incorrect.
35.
The auditor considers the status of legal matters up to the date of the audit
report. In some instances, the auditor may need to obtain updated
information from entity’s legal counsel.
36.
In certain circumstances, for example, where the auditor determines that the
matter is a significant risk, the matter is complex or there is disagreement
between management and the entity’s legal counsel, it may be necessary for
the auditor to meet with the entity’s legal counsel to discuss the likely
outcome of litigation and claims. Such meetings would take place with
management’s5 permission and, preferably, with a representative of
management in attendance.
3
In the UK and Ireland the letter should be prepared by those charged with governance.
4
In the UK, the Council of the Law Society has advised solicitors that it is unable to recommend them to
comply with non-specific requests for information.
5
In the UK and Ireland the auditor seeks the permission of those charged with governance.
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ISA (UK and Ireland) 501
37.
If management4 refuses to give the auditor permission to communicate
with the entity’s legal counsel, this would be a scope limitation and
should ordinarily lead to a qualified opinion or a disclaimer of opinion.
Where the entity’s legal counsel refuses to respond in an appropriate
manner and the auditor is unable to obtain sufficient appropriate audit
evidence by applying alternative audit procedures, the auditor would
consider whether there is a scope limitation which may lead to a qualified
opinion or a disclaimer of opinion.
Part D: Valuation and Disclosure of Long-term Investments
38.
When long-term investments are material to the financial statements,
the auditor should obtain sufficient appropriate audit evidence
regarding their valuation and disclosure.
39.
Audit procedures regarding long-term investments ordinarily include
obtaining audit evidence as to whether the entity has the ability to continue
to hold the investments on a long term basis and discussing with
management whether the entity will continue to hold the investments as
long-term investments and obtaining written representations to that effect.
40.
Other audit procedures would ordinarily include considering related
financial statements and other information, such as market quotations,
which provide an indication of value and comparing such values to the
carrying amount of the investments up to the date of the auditor’s report.
41.
If such values do not exceed the carrying amounts, the auditor would
consider whether a write-down is required. If there is an uncertainty as to
whether the carrying amount will be recovered, the auditor would consider
whether appropriate adjustments and/or disclosures have been made.
Part E: Segment Information
42.
When segment information is material to the financial statements, the
auditor should obtain sufficient appropriate audit evidence regarding
its presentation and disclosure in accordance with the applicable
financial reporting framework.
43.
The auditor considers segment information in relation to the financial
statements taken as a whole, and is not ordinarily required to apply audit
procedures that would be necessary to express an opinion on the segment
information standing alone. However, the concept of materiality
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ISA (UK and Ireland) 501
encompasses both quantitative and qualitative factors and the auditor’s
procedures recognize this.
44.
Audit procedures regarding segment information ordinarily consist of
analytical procedures and other audit procedures as appropriate in the
circumstances.
45.
The auditor would discuss with management1 the methods used in
determining segment information, and consider whether such methods are
likely to result in disclosure in accordance with the applicable financial
reporting framework and perform audit procedures over the application of
such methods. The auditor would consider sales, transfers and charges
between segments, elimination of inter-segment amounts, comparisons with
budgets and other expected results, for example, operating profits as a
percentage of sales, and the allocation of assets and costs among segments
including consistency with prior periods and the adequacy of the
disclosures with respect to inconsistencies.
Effective Date
45-1.
16
This ISA (UK and Ireland) is effective for audits of financial statements for
periods commencing on or after 15 December 2004.
ISA (UK and Ireland) 501
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The ISAs (UK and Ireland) are based on International Standards on Auditing of the
same titles, which have been issued by the International Auditing and Assurance
Standards Board and published by the International Federation of Accountants.
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