Revenue and Related Accounts
241 deficiencies · 12 led to a wrong opinion · 34 on a significant-risk area
How audits fail in Revenue and Related Accounts
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Little or no substantive testing64
The firm performed little or no substantive testing over the account, disclosure, or assertion.
1 wrong opinion5 significant risk - Controls not identified or tested43
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
3 wrong opinion9 significant risk - Accuracy/completeness of client data not tested32
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
3 wrong opinion4 significant risk - Estimate assumptions not evaluated22
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
2 significant risk - IT general controls not tested19
The firm relied on automated or IT-dependent controls but didn't adequately test the underlying IT general controls (e.g. change management).
- Sample too small or unsupported18
The sample the firm tested was too small, or the basis for the sample size didn't support the conclusion.
2 wrong opinion4 significant risk - Management review controls not fully evaluated16
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
4 significant risk - Accounting or disclosure treatment not evaluated8
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
2 significant risk - Confirmations / alternative procedures8
The firm didn't obtain confirmations, or didn't perform sufficient alternative procedures when confirmations weren't returned.
1 wrong opinion1 significant risk - Journal entries / fraud procedures5
Deficiencies in testing journal entries or in responding to identified fraud risks.
2 wrong opinion - Other testing deficiency5
A deficiency that doesn't fall into one of the more specific patterns above.
3 significant risk - Reliance on a specialist or pricing service1
The firm relied on a specialist, pricing service, or third party without sufficiently evaluating that work.