Deferred Revenue
130 deficiencies · 13 led to a wrong opinion · 5 on a significant-risk area
How audits fail in Deferred Revenue
The recurring ways firms fell short. Click any one to read the real inspection findings.
- IT general controls not tested43
The firm relied on automated or IT-dependent controls but didn't adequately test the underlying IT general controls (e.g. change management).
5 wrong opinion5 significant risk - Little or no substantive testing24
The firm performed little or no substantive testing over the account, disclosure, or assertion.
4 wrong opinion - Controls not identified or tested24
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
1 wrong opinion - Accuracy/completeness of client data not tested17
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
3 wrong opinion - Sample too small or unsupported8
The sample the firm tested was too small, or the basis for the sample size didn't support the conclusion.
- Management review controls not fully evaluated6
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
- Accounting or disclosure treatment not evaluated4
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
- Estimate assumptions not evaluated2
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
- Other testing deficiency1
A deficiency that doesn't fall into one of the more specific patterns above.
- Journal entries / fraud procedures1
Deficiencies in testing journal entries or in responding to identified fraud risks.