Allowance for Credit/Loan Losses
409 deficiencies · 3 led to a wrong opinion · 119 on a significant-risk area
How audits fail in Allowance for Credit/Loan Losses
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Estimate assumptions not evaluated107
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
1 wrong opinion36 significant risk - Management review controls not fully evaluated96
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
1 wrong opinion25 significant risk - Controls not identified or tested65
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
18 significant risk - Accuracy/completeness of client data not tested49
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
1 wrong opinion13 significant risk - Little or no substantive testing26
The firm performed little or no substantive testing over the account, disclosure, or assertion.
6 significant risk - Sample too small or unsupported23
The sample the firm tested was too small, or the basis for the sample size didn't support the conclusion.
3 significant risk - Reliance on a specialist or pricing service14
The firm relied on a specialist, pricing service, or third party without sufficiently evaluating that work.
7 significant risk - Estimate method, model, or data not evaluated12
The firm didn't evaluate the method, model, or underlying data the issuer used to develop an estimate or fair value.
5 significant risk - IT general controls not tested11
The firm relied on automated or IT-dependent controls but didn't adequately test the underlying IT general controls (e.g. change management).
4 significant risk - Risk assessment3
The firm didn't properly identify, assess, or revise its risks of material misstatement.
- Other testing deficiency2
A deficiency that doesn't fall into one of the more specific patterns above.
1 significant risk - Accounting or disclosure treatment not evaluated1
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
1 significant risk