Long-Lived Assets
313 deficiencies · 3 led to a wrong opinion · 95 on a significant-risk area
How audits fail in Long-Lived Assets
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Estimate assumptions not evaluated61
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
3 wrong opinion37 significant risk - Accuracy/completeness of client data not tested45
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
14 significant risk - Little or no substantive testing44
The firm performed little or no substantive testing over the account, disclosure, or assertion.
11 significant risk - Management review controls not fully evaluated38
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
6 significant risk - Estimate method, model, or data not evaluated36
The firm didn't evaluate the method, model, or underlying data the issuer used to develop an estimate or fair value.
9 significant risk - IT general controls not tested23
The firm relied on automated or IT-dependent controls but didn't adequately test the underlying IT general controls (e.g. change management).
1 significant risk - Controls not identified or tested22
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
1 significant risk - Reliance on a specialist or pricing service19
The firm relied on a specialist, pricing service, or third party without sufficiently evaluating that work.
13 significant risk - Accounting or disclosure treatment not evaluated12
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
3 significant risk - Other testing deficiency8
A deficiency that doesn't fall into one of the more specific patterns above.
- Sample too small or unsupported5
The sample the firm tested was too small, or the basis for the sample size didn't support the conclusion.