How audits fail in Warrants
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Accounting or disclosure treatment not evaluated30
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
1 wrong opinion2 significant risk - Estimate assumptions not evaluated15
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.
5 significant risk - Reliance on a specialist or pricing service5
The firm relied on a specialist, pricing service, or third party without sufficiently evaluating that work.
3 significant risk - Little or no substantive testing1
The firm performed little or no substantive testing over the account, disclosure, or assertion.
- Management review controls not fully evaluated1
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
- Other testing deficiency1
A deficiency that doesn't fall into one of the more specific patterns above.