Page 302 - Auditing Standards

As of December 15, 2017

AS 2503: Auditing Derivative Instruments, Hedging Activities,

and Investments in Securities

Guidance on AS 2503: Staff Audit Practice Alert No. 3

Summary Table of Contents

.01 Applicability

.05 The Need for Special Skill or Knowledge to Plan and Perform Auditing Procedures

.07 Audit Risk and Materiality

.19 Designing Substantive Procedures Based on Risk Assessments

.52 Additional Considerations About Hedging Activities

.56 Assertions About Securities Based on Management's Intent and Ability

.58 Management Representations

.59 Effective Date

Applicability

.01 This section provides guidance to auditors in planning and performing auditing procedures for

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assertions about derivative instruments, hedging activities, and investments in securities that are made in an
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entity's financial statements. Those assertions are classified according to five broad categories that are
discussed in paragraphs .11 and .12 of AS 1105, Audit Evidence, and address the following:

a. Existence or occurrence

b. Completeness

c. Rights and obligations

d. Valuation or allocation

e. Presentation and disclosure

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