Explorer

During the year the issuer acquired a business and engaged an external specialist to determine the fair value of the acquired intangible assets. The firm selected for testing a control that consisted of the issuer's review of the company's specialist report. The firm did not identify and test any controls over the reasonableness of certain assumptions provided by management to the company's specialist and used by the specialist in the determination of the fair value of the acquired intangible assets included in its report. (AS 2201.39)

During the year the issuer acquired multiple businesses and determined the fair value of the acquired intangible assets using cash-flow forecasts. The following deficiencies were identified: · The firm did not perform substantive procedures beyond reading a small number of customer contracts to evaluate the reasonableness of certain other assumptions underlying these cash flow forecasts including customer attrition rates for one of these acquisitions. (AS 2502.26 and .28)

The issuer acquired multiple businesses and determined the fair value of the acquired intangible assets using cash-flow forecasts. The firm's approach for substantively testing the valuation of the acquired intangible assets was to review and test management's process. The following deficiencies were identified: · To evaluate the reasonableness of certain assumptions used in these cash-flow forecasts the firm compared these assumptions to both historical and industry information and identified certain differences. The firm did not perform procedures beyond inquiring of management and obtaining industry growth information used by the issuer to evaluate these differences. (AS 2502.26 .28 .31 and .36)

The firm's approach for substantively testing the fair values of the acquired intangible assets and consideration transferred was to test the issuer's process. The following deficiencies were identified: · For another acquired business the following deficiencies were identified: o The firm did not evaluate the reasonableness of certain assumptions the issuer used to determine the fair values. (AS 2501.16)

The firm's approach for substantively testing the fair values of the acquired intangible assets and consideration transferred was to test the issuer's process. The following deficiencies were identified: · For two acquired businesses the firm did not evaluate the reasonableness of the significant assumptions used to determine these fair values. (AS 2501.16)

During the year the issuer acquired multiple businesses. The following deficiencies were identified: · The issuer developed forecasted cash flows using historical financial data from the acquired businesses to determine the fair values of certain acquired intangible assets and assumed liabilities. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions that the issuer used to develop the forecasted cash flows. (AS 2501.16)

During the year the issuer acquired a business and determined the fair value of certain acquired intangible assets using various assumptions. The firm's approach for substantively testing the fair value of these acquired intangible assets was to develop an independent expectation of the estimate. The following deficiencies were identified: · The firm did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the issuer that the firm also used to develop its independent expectation because its procedures were limited to inquiring of management. (AS 2501.16)

During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not perform procedures to test the fair value of accounts receivable at the acquisition date beyond observing the subsequent collection rate through year-end. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements.

During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not test the fair value of shares transferred to the sellers as part of the consideration related to the business combination. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements.

During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not test the fair value of contingent consideration at the acquisition date and yearend. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements.

The issuer engaged an external specialist to assist in determining the fair value of an intangible asset acquired in a business combination and the firm used an auditor-employed specialist to assist it with testing the valuation of this intangible asset. The following deficiency was identified: · The auditor-employed specialist did not perform procedures to evaluate the reasonableness of a significant assumption developed and used by the company's specialist to determine the fair value of the intangible asset beyond reading the valuation report prepared by the company's specialist and identifying qualitative factors that could result in a significant difference between the assumption and the range for that assumption identified by the company's specialist. (AS 1105.A8b)

During the year the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions including future production volumes. The company's specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company's specialists to develop the future production volumes. The following deficiencies were identified: · The firm did not identify and test any controls over the reliability of the historical production data used by the company's specialists. (AS 2201.39)

During the year the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions including future production volumes. The company's specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company's specialists to develop the future production volumes. The following deficiencies were identified: · The firm did not evaluate the reliability of the historical production data used by the company's specialists. (AS 1105.A8a)

During the year the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions including future production volumes. The company's specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company's specialists to develop the future production volumes. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of certain significant non-financial assumptions that were developed and used by the company's specialists beyond comparing the assumptions for the first year of the discounted cash flows for a selection of acquired properties to the historical production data of the acquired business and the issuer's other properties. (AS 1105.A8b)

During the year the issuer acquired two businesses. With respect to one of these business combinations the following deficiencies were identified: · The purchase price for the acquisition included contingent consideration based on forecasted revenue. The issuer estimated the fair value of the initial contingent consideration using certain assumptions. The firm did not perform any procedures to evaluate the fair value of the contingent consideration. (AS 2502.15)

With respect to the other business combination the following deficiencies were identified: · The firm's approach for substantively testing the fair value of an acquired intangible asset was to review and test management's process. The firm did not perform procedures beyond inquiry of management to evaluate the reasonableness of certain assumptions used to determine the fair value of this asset. (AS 2502.26 and .28)

The firm's approach for substantively testing the fair value of the intangible assets and goodwill was to test the issuer's process and the firm engaged an external specialist to evaluate the reasonableness of the assumptions developed by the company's specialist and the appropriateness of the methods used by the company's specialist. The firm did not sufficiently test the fair value of the intangible assets and goodwill because it did not identify that the auditor-engaged specialist did not evaluate (1) the reasonableness of the significant assumptions and (2) whether the method(s) used by the company's specialist were appropriate under the circumstances taking into account the requirements of the applicable financial reporting framework. (AS 1105.A8b and .A8c; AS 1210.09 and .12)

During the year the issuer acquired multiple businesses and used an external specialist to determine the fair values of the assets acquired and the liabilities assumed. The firm's approach for testing these fair values was to review and test management's process. The firm did not evaluate the reasonableness of assumptions used by the specialist to determine the fair values of the assets acquired and the liabilities assumed. (AS 2502.26 and .28)

During the year the issuer acquired a business and used an external specialist to estimate the fair value of certain of the acquired intangible assets. The firm's approach for substantively testing the fair value of the acquired intangible assets was to review and test management's process. The following deficiencies were identified: · The firm did not sufficiently evaluate the reasonableness of the revenue growth rate assumptions the issuer provided to the external specialist that the specialist used to estimate the fair value of the acquired intangible assets because it limited its procedures to inquiring of management and comparing the growth rates to historical revenue growth information of another company without performing procedures to evaluate whether that company's historical results would be representative of the future revenue growth rates of the acquired business. Further the firm did not evaluate contradictory evidence the specialist included in the valuation report that indicated that the expected revenue growth rate for the issuer's industry was significantly lower than the expected growth rates for the acquired business. (AS 1210.12; AS 2810.03)

During the year the issuer acquired a controlling interest in a business and engaged a specialist to estimate the fair value of both an acquired intangible asset and the acquired business. The firm's approach for substantively testing the fair value of each was to test the issuer's process. The following deficiencies were identified: - Beyond comparing certain forecasted assumptions to actual results for the period subsequent to the acquisition the firm did not evaluate the reasonableness of certain assumptions provided by the issuer and used by the company's specialist. (AS 2501.16)

During the year the issuer acquired a controlling interest in a business and engaged a specialist to estimate the fair value of both an acquired intangible asset and the acquired business. The firm's approach for substantively testing the fair value of each was to test the issuer's process. The following deficiencies were identified: - The firm did not evaluate the reasonableness of certain assumptions developed by the company's specialist including the consistency of these assumptions with relevant information. (AS 1105.A8b)

During the year the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer because it limited its procedures to comparing the assumptions to industry information. Further the firm did not perform any procedures to evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the issuer because it limited its procedures to comparing the assumption to industry information without evaluating the significant difference between the assumption and the industry information. Further the firm did not evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reliability of industry information it used to evaluate the reasonableness of an assumption developed by the company's specialist. (AS 1105.04 and .06)

The issuer recorded at fair value intangible assets that it acquired as part of a current-year business combination. The firm's approach for testing the fair value of one of the acquired intangible assets was to develop an independent estimate of the fair value using forecasted revenue growth rates produced by the issuer. The firm did not evaluate the reasonableness of these revenue growth rates. (AS 2501.24)

The issuer recorded at fair value intangible assets that it acquired as part of a current-year business combination. The firm's approach for testing the fair value of one of the acquired intangible assets was to develop an independent estimate of the fair value using forecasted revenue growth rates produced by the issuer. The firm did not perform any procedures to test the fair value of the other acquired intangible assets. (AS 2501.07)

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For one of these business combinations the firm did not sufficiently evaluate the relevance and reliability of the company's specialist's work because it did not identify and evaluate inconsistencies between the measurement of or significant assumptions used in the enterprise fair value estimated by the company's specialist compared to both (1) the fair value of the consideration transferred by the issuer and (2) certain significant assumptions developed by the company's specialist. (AS 1105.A9 and .A10)

The firm used an auditor-engaged specialist to assist it with testing the fair value of an acquired asset which was determined by the company's specialist. The auditor-engaged specialist's approach consisted of (1) testing the issuer's process and (2) developing an independent expectation of the fair value as a range. The following deficiency was identified · When testing the issuer's process the firm did not identify that the auditor-engaged specialist did not perform any procedures to evaluate the reasonableness of a significant assumption developed by the company's specialist. (AS 1105.A8b; AS 1210.09 and .12) In connection with our review the issuer reevaluated its accounting for this asset and determined that an error existed that had not been previously identified. The issuer corrected this error in a subsequent filing.

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For certain acquired assets in these business combinations the firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist or developed by the issuer including evaluating significant differences between the useful lives assigned to these assets and the cash flow forecast periods used to determine their fair values. (AS 1105.A8b; AS 2501.16)

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For two of these business combinations the firm used an auditor-employed specialist to evaluate another significant assumption developed by the company's specialist and used in the measurement of these acquired assets. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For one of these business combinations the firm used an auditor-engaged specialist to assist it with testing the fair value of another acquired asset which was determined by the company's specialist. The firm did not identify that the auditor-engaged specialist did not perform any procedures to evaluate the reasonableness of the significant assumptions developed by the company's specialist. (AS 1105.A8b; AS 1210.09 and .12)

For certain business combinations the firm did not perform any procedures to test the fair values of certain other acquired assets. (AS 2501.07)

For two business combinations the firm's approach for substantively testing the fair values of the provisions for contingent consideration to be paid to the sellers was to develop independent expectations of the estimates using an auditor-employed specialist. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer which were also used by the firm to develop its independent expectations. (AS 2501.16)

For two business combinations the firm's approach for substantively testing the fair values of the provisions for contingent consideration to be paid to the sellers was to develop independent expectations of the estimates using an auditor-employed specialist. The following deficiency was identified: · For the other business combination the firm used the auditor-employed specialist to evaluate a significant assumption developed by the company's specialist which was also used by the firm to develop its independent expectation. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)

During the year the issuer acquired several businesses. For one business combination the following deficiency was identified: · The firm did not perform any procedures to test the fair value of assets acquired and liabilities assumed. (AS 2501.07)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of acquired intangible assets using various significant assumptions. The following deficiency was identified: · The firm did not perform procedures beyond inquiry to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of acquired intangible assets using various significant assumptions. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate a significant assumption developed by the company's specialist. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair value of an acquired intangible asset using various significant assumptions. The following deficiency was identified: · The firm did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the issuer because it did not (1) evaluate the relevance and reliability of certain market information it used and (2) take into account whether these assumptions were consistent with the issuer's intent and ability to carry out its plans. (AS 1105.04 and .06; AS 2501.16 and .17)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair value of an acquired intangible asset using various significant assumptions. The following deficiency was identified: · The firm did not perform procedures beyond inquiry to evaluate the reasonableness of certain other significant assumptions developed by the company's specialist or developed by the issuer. (AS 1105. A8b; AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various significant assumptions. The following deficiency was identified: · The firm did not sufficiently evaluate the reasonableness of a significant assumption developed by the issuer because it did not evaluate a significant difference between this assumption and the issuer's recent experience. (AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various significant assumptions. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate a significant assumption developed by the company's specialist. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various significant assumptions. The following deficiency was identified: · The firm did not perform procedures beyond inquiring of management to evaluate the reasonableness of certain other significant assumptions developed by the company's specialist or developed by the issuer. (AS 1105.A8b; AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For certain acquired intangible assets the firm did not perform procedures beyond inquiring of management to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16)

The firm did not perform procedures to test certain other assets acquired and liabilities assumed beyond tracing these amounts to the general ledger of the acquired business. (AS 2301.08; AS 2501.07)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair value of an acquired intangible asset using various significant assumptions. The following deficiency was identified: · The firm did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the issuer because it did not (1) take into account the issuer's intent and ability to carry out these assumptions (2) take into account changes in conditions or events affecting the issuer and/or (3) evaluate significant differences between the assumptions and the issuer's historical financial information. (AS 2501.16 and .17)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair value of an acquired intangible asset using various significant assumptions. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of certain other significant assumptions developed by the company's specialist or developed by the issuer. (AS 1105.A8b; AS 2501.16)

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · The firm did not perform procedures beyond inquiry of management to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16)

During the year the issuer acquired multiple businesses and engaged a specialist to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate certain significant assumptions developed by the company's specialist and used in the measurement of certain acquired intangible assets. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate these assumptions. (AS 1105.A8b; AS 1201.C6 and .C7)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of an acquired intangible asset and the consideration transferred using various significant assumptions. The firm's approach for substantively testing the fair values of the acquired intangible asset and the consideration transferred was to test the issuer's process. The following deficiencies were identified: · With respect to the fair value of the remaining consideration transferred the firm did not perform procedures beyond inquiring of management to evaluate the reasonableness of certain significant assumptions developed by the company's specialist or by the issuer. (AS 1105.A8b; AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist it in determining the fair values of an acquired intangible asset and the consideration transferred using various significant assumptions. The firm's approach for substantively testing the fair values of the acquired intangible asset and the consideration transferred was to test the issuer's process. The following deficiencies were identified: · With respect to the intangible asset the firm used an auditor-employed specialist to evaluate a significant assumption developed by the issuer. The firm did not identify that the auditor-employed specialist did not perform procedures beyond inquiring of management to evaluate the reasonableness of this assumption. (AS 1201.C6 and .C7; AS 2501.16)