Revenue
1,684 deficiencies · 73 led to a wrong opinion · 65 on a significant-risk area
How audits fail in Revenue
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Little or no substantive testing473
The firm performed little or no substantive testing over the account, disclosure, or assertion.
16 wrong opinion20 significant risk - Accuracy/completeness of client data not tested277
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
12 wrong opinion5 significant risk - Controls not identified or tested238
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
20 wrong opinion - Accounting or disclosure treatment not evaluated173
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
10 wrong opinion7 significant risk - Management review controls not fully evaluated131
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
6 wrong opinion5 significant risk - Sample too small or unsupported123
The sample the firm tested was too small, or the basis for the sample size didn't support the conclusion.
4 wrong opinion8 significant risk - IT general controls not tested99
The firm relied on automated or IT-dependent controls but didn't adequately test the underlying IT general controls (e.g. change management).
1 wrong opinion16 significant risk - Other testing deficiency52
A deficiency that doesn't fall into one of the more specific patterns above.
- Estimate assumptions not evaluated40
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
1 wrong opinion2 significant risk - Journal entries / fraud procedures25
Deficiencies in testing journal entries or in responding to identified fraud risks.
1 significant risk - Confirmations / alternative procedures23
The firm didn't obtain confirmations, or didn't perform sufficient alternative procedures when confirmations weren't returned.
- Estimate method, model, or data not evaluated19
The firm didn't evaluate the method, model, or underlying data the issuer used to develop an estimate or fair value.
3 wrong opinion1 significant risk - Risk assessment11
The firm didn't properly identify, assess, or revise its risks of material misstatement.