Additional evidence requirements for inventory, litigation and claims, and segment information.
To obtain sufficient appropriate audit evidence about the existence and condition of inventory, the completeness of litigation and claims involving the entity, and the presentation and disclosure of segment information.
SA 501 sits in the Audit Evidence phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 501 into practice — built from the ICAI working-paper set, free to download.
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SA 501 — Audit Evidence: Specific Considerations for Selected Items — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Additional evidence requirements for inventory, litigation and claims, and segment information. To obtain sufficient appropriate audit evidence about the existence and condition of inventory, the completeness of litigation and claims involving the entity, and the presentation and disclosure of segment information.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 501 in the audit evidence phase, that means evidencing: Attend physical inventory counting where inventory is material, and evaluate management's count instructions and procedures; If attendance is not practicable, perform alternative procedures and, where needed, consider the effect on the opinion; Design procedures to identify litigation and claims that may give rise to a risk of material misstatement, including inquiry of management, in-house and external legal counsel.
