A component of the issuer (“component”) entered into contracts with customers in which revenue was recognized over time based on the extent of progress towards completion of the performance obligation. The following deficiency was identified: · The firm selected for testing a control that consisted of the component's review of manual journal entries. The firm did not sufficiently test the operating effectiveness of this control because it made its selections to test the control from an incomplete population of journal entries. (AS 2201.44)
Both financial statement and ICFR audits · full report
A component of the issuer (“component”) entered into contracts with customers in which revenue was recognized over time based on the extent of progress towards completion of the performance obligation. The following deficiency was identified: · The firm selected for testing a control that consisted of the component's review of manual journal entries. The firm did not identify and test any controls over the component's recording of the manual journal entries in the general ledger. (AS 2201.39)
Both financial statement and ICFR audits · full report
United States · Grant Thornton International Limited
Accounts Receivable
Journal entries / fraud procedures
The issuer initiated and processed transactions related to revenue accounts receivable and inventory at several business units. The firm selected for testing an entity-level control that consisted of the issuer's review of quarterly financial information including revenue accounts receivable and inventory. The firm did not identify that this entity-level control was not designed to address an identified fraud risk. (AS 2201.42)
Both financial statement and ICFR audits · full report