During the year the issuer acquired multiple businesses. The following deficiencies were identified: · The firm selected for testing a control that included the issuer's review of the fair values of assets acquired in these business combinations including the assumptions the issuer used. In its testing of the operating effectiveness of this control the firm did not evaluate whether an item identified for follow up was appropriately resolved. (AS 2201.44)
Both financial statement and ICFR audits · full report
In addition as a result of the firm's testing performed in the audit of the issuer's financial statements the firm identified modifications to certain assumptions used by the issuer to determine the fair value of the acquired intangible assets. The firm did not evaluate the effect of these modifications identified in its substantive audit procedures on its conclusions regarding the design and operating effectiveness of this control. (AS 2201.B8)
During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not identify and test any controls over certain assets acquired and liabilities assumed as of the acquisition date. (AS 2201.39)
Both financial statement and ICFR audits · full report
The firm did not identify and test any controls over the completeness and existence of the assets acquired and the liabilities assumed at the acquisition date. (AS 2201.39)
The issuer determined the fair value of an acquired intangible asset using various assumptions including revenue growth rates. The firm identified control deficiencies related to two controls selected for testing over management's review of these assumptions. Except for the two deficient controls the firm did not identify and test any controls that address the risk of potential misstatement related to errors in the assumptions including revenue growth rates. (AS 2201.39)