[The following paragraph was effective for audits of financial statements for fiscal years ending on or after June 30, 2001. It was amended, effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004.

Return to the current version.]


This section provides guidance to auditors in planning and performing auditing procedures for assertions about derivative instruments, hedging activities, and investments in securities fn 2 that are made in an entity’s financial statements. fn 3 Those assertions fn 4 are classified according to five broad categories that are discussed in section 326, Evidential Matter, paragraphs .03–.08, and address the following:

  1. Existence or occurrence
  2. Completeness
  3. Rights and obligations
  4. Valuation or allocation
  5. Presentation and disclosure