Explorer

The firm selected for testing a control that consisted of the issuer's review of assumptions used to determine the qualitative adjustments used to estimate the ALL for loans collectively evaluated for impairment. Due to the deficiencies in the firm's testing of the IT general controls (ITGCs) the firm did not sufficiently test controls over the accuracy and completeness of certain reports used in the operation of these controls. (AS 2201.46)

The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. As a result of the deficiencies the firm's testing of this IT-dependent manual control was not sufficient. (AS 2201.46)

The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm selected for testing a review control over user access. The firm did not evaluate the specific procedures that the control owners performed to determine whether the granted access continued to be appropriate. (AS 2201.42 and .44)

The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm selected for testing a change management control. The firm did not test or test any controls over the completeness of the change management population used by the firm to select items for testing the change management control. (AS 1105.10)

The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm did not identify and test any controls over the accuracy and completeness of the reports generated from this IT system used in the performance of the control. (AS 2201.39)

The firm selected for testing a control over the review of the significant judgments and estimates used in the ALL. Due to the deficiencies in the firm's testing of IT general controls the firm did not sufficiently test controls over the accuracy and completeness of data and reports used in the operation of this control. (AS 2201.46)

The issuer's processes related to loans receivable the ALL investments derivatives and investment and brokerage services income were highly automated with transactions being initiated processed and recorded by numerous information-technology (“IT”) systems. The firm tested certain automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. The accuracy and completeness of these data and reports depended on effective IT general controls (“ITGCs”). The firm's sampling approach for testing ITGCs was inappropriate because it was based on an unsupported assumption that the population of ITGCs was homogeneous. As a result the firm's testing of these automated and IT-dependent manual controls over these areas was not sufficient. (AS 2201.46 and .47)

The issuer used two IT systems to process and record transactions related to the ALL. In its testing of controls over this account the firm tested certain IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the deficiencies in the firm's testing of ITGCs discussed below the firm's testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)

The issuer used two IT systems to process and record transactions related to the ALL. In its testing of controls over this account the firm tested certain IT-dependent manual controls that used data and reports generated or maintained by these IT systems. The following ITGC deficiencies were identified: · The firm selected for testing a control over change management but did not perform any procedures to test or in the alternative test any controls over the completeness of the population of changes from which it made its selections for testing. (AS 1105.10)

As a result of the firm's ITGC testing deficiencies the firm did not perform sufficient substantive procedures as follows: · The firm did not perform any substantive procedures to test or sufficiently test controls over the accuracy and completeness of certain system-generated data and reports the firm used in its substantive testing. (AS 1105.10)

As a result of the firm's ITGC testing deficiencies the firm did not perform sufficient substantive procedures as follows: · The sample size the firm used in certain of its substantive procedures to test the ALL was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A)