Explorer

During the year the issuer acquired a business and engaged a specialist to estimate the fair value of the acquired intangible assets and goodwill at the acquisition date. The firm's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not perform any substantive procedures to test or in the alternative identify and test controls over the accuracy and completeness of those documents. (AS 1105.10)

During the year the issuer acquired a business and the firm used labor hours from another timekeeping system in its testing of (1) contract assets acquired and liabilities assumed and (2) the acquired business' revenue and related accounts. The firm did not perform any procedures to test or test controls over the accuracy and completeness of these labor hours. (AS 1105.10)

During the year the issuer acquired a business. The firm selected for testing a control that included the issuer's review of the valuation of acquired intangible assets and related assumptions. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39)

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 identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39)

During the year the issuer acquired several businesses. 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 significant assumptions used. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of certain acquired assets. The following deficiencies were identified: · For certain other assets the firm did not perform any procedures to test the accuracy and completeness of issuer-produced information that was used by the specialist to determine their fair values. (AS 1105.A8a)

The firm used an auditor-employed specialist to assist it with testing the fair values of certain acquired assets which were determined by the company's specialists. The following deficiency was identified: · For certain acquired intangible assets the firm did not identify that the auditor-employed specialist did not perform any procedures to (1) evaluate certain of the significant assumptions that were developed by one of the company's specialists and used to determine the fair values of these acquired assets and (2) test the accuracy and completeness of certain issuer-produced data that were used by this specialist to develop these significant assumptions. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)

The issuer determined the fair values of certain acquired assets using cash-flow forecasts. The following deficiency was identified: · The firm selected for testing a control that included the issuer's review of assumptions used in these cash flow forecasts. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced reports used in the operation of the control. (AS 2201.39)

The issuer determined the fair values of certain acquired assets using cash-flow forecasts. The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced reports used to develop certain assumptions that were used to determine these fair values. (AS 1105.10)

The firm's approach for testing the fair value of acquired intangible assets was to review and test management's process. The firm did not test the forecasted cash flows and the accuracy and completeness of other data that were provided to the external specialist. (AS 1210.12)

The external specialist determined the fair value of the PP&E using an issuer-prepared asset listing. The firm did not sufficiently test the accuracy and completeness of the listing because it limited its procedures to comparing the asset listing to the PP&E roll-forward schedule and general ledger of the acquired business. (AS 1210.12)

In addition the firm did not test the accuracy and completeness of certain data used in one of the comparisons. (AS 1105.10)

In addition the firm did not test the accuracy and completeness of data used to determine the fair values of these obligations assumed. (AS 2502.26 .28 and .39)

During the year the issuer acquired a business. The following deficiency was identified: · The firm selected for testing controls that consisted of the issuer's reviews of the fair values of assets acquired and liabilities assumed including the assumptions and data the issuer used. The firm did not test the aspects of one of these controls that addressed the accuracy and completeness of certain of these data. (AS 2201.42 and .44)

During the year the issuer acquired a business. The following deficiency was identified: · The firm's approach for substantively testing the fair values of these acquired intangible assets was to test the issuer's process. The firm did not perform any procedures to test the accuracy and completeness of certain issuer-produced data that the company's specialist used to determine the fair value of certain of these acquired intangible assets. (AS 1105.A8a)

During the year the issuer acquired multiple businesses and determined the fair value of certain acquired intangible assets using cash-flow forecasts. The firm's approach for substantively testing the valuation of these acquired intangible assets was to test the issuer's process. The following deficiency was identified: · For another of these acquired intangible assets the firm did not test the accuracy and completeness of certain issuer-produced data that a company's specialist used to develop a significant assumption that was used in these cash-flow forecasts. (AS 1105.A8a)

During the year the issuer acquired multiple businesses and engaged specialists to determine the fair value of certain acquired intangible assets using various assumptions. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data that the company's specialist used to develop certain of these assumptions. (AS 2201.39)

During the year the issuer acquired multiple businesses and engaged specialists to determine the fair value of certain acquired intangible assets using various assumptions. The following deficiencies were identified: · The firm did not test or test any controls over the accuracy and completeness of certain issuer-produced data that the company's specialist used to develop certain of these assumptions. (AS 1105.A8a)

During the year the issuer acquired multiple businesses and determined the fair value of certain acquired intangible assets using cash-flow forecasts. The following deficiencies were identified: · The firm selected for testing controls that consisted of the issuer's reviews of the fair value of these acquired intangible assets including the assumptions and data used in these cash-flow forecasts. For one of these controls the firm did not identify and test any controls over the accuracy and completeness of certain of these data for one of these acquired businesses. (AS 2201.39)

During the year the issuer acquired multiple businesses and determined the fair value of certain acquired intangible assets using cash-flow forecasts. The following deficiencies were identified: · The firm used certain data in its substantive testing of one of these acquired businesses but did not perform any procedures to test or test any controls over the accuracy and completeness of these data. (AS 1105.10)

During the year the issuer acquired a business. The firm selected for testing a control that included the issuer's review of the fair values of acquired assets and the related significant assumptions. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of this control. (AS 2201.39)

The firm also selected for testing a control that included the issuer's review of the loan risk ratings assigned to the acquired loans. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of this control. (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: · For one of these business combinations the firm did not perform substantive procedures to test the accuracy and completeness of the historical data it used to evaluate the reasonableness of the revenue growth-rate assumptions beyond vouching amounts to unaudited financial information and reading certain customer contracts. (AS 1105.10)

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: · For one of these business combinations the firm did not perform substantive procedures to test the accuracy and completeness of the historical data it used to evaluate the reasonableness of the revenue growth-rate assumptions beyond vouching amounts to unaudited financial information and reading certain customer contracts. (AS 1105.10) In addition the firm did not evaluate the appropriateness of the peer companies the firm used in its evaluation of the reasonableness of the forecasted revenue. (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: · The firm did not perform procedures to test the accuracy and/or completeness of certain data and reports that (1) the issuer used to develop certain assumptions underlying these cash-flow forecasts and/or (2) the firm used in its procedures. (AS 2502.39)

For one of these acquired businesses the firm selected for testing a control over the accounting for the business combination including the issuer's reviews of the valuation of acquired intangible assets. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of this control. (AS 2201.39)

During the year the issuer acquired multiple businesses and determined the fair values of the acquired intangible assets and consideration transferred using forecasted cash flows and other assumptions. Each business combination contained provisions for contingent consideration to be paid to the sellers. The following deficiencies were identified: · The firm selected for testing two controls over the preliminary valuation of acquisitions that included reviews of the assumptions the issuer used in these forecasted cash flows and other assumptions the issuer used to determine these fair values. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of these controls. (AS 2201.39)

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 perform procedures to test the accuracy and completeness of certain information produced by the issuer that was used to determine these fair values. (AS 1105.10)

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 perform procedures to test the accuracy and completeness of the information the issuer used to develop certain assumptions used to determine these fair values. (AS 1105.10)

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 perform procedures to (1) test the accuracy and completeness of issuer-produced data that the company's specialist had used and (2) evaluate the reliability of data from sources external to the company that the company's specialist had used to develop certain of these assumptions. (AS 1105.A8a)

The firm selected for testing controls that consisted of the issuer's review of (1) valuation reports and journal entries used to record the business combinations (2) reconciliations of valuation reports to the general ledger and (3) assumptions used to value assets acquired and liabilities assumed. The firm did not identify and test any controls over the accuracy and completeness of issuer-produced data that the control owners used in the performance of these controls. (AS 2201.39)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using customer attrition-rate assumptions. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of historical revenue data that the issuer used to determine the attrition rates. (AS 2201.39)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using customer attrition-rate assumptions. The following deficiencies were identified: · The firm's approach for testing the attrition rates was to review and test management's process. The firm did not perform any substantive procedures to test or in the alternative identify and test any controls over the accuracy and completeness of historical revenue data that the issuer used to determine the attrition rates as discussed above. (AS 2502.39)

In addition the firm did not test the aspect of this control that addressed the accuracy and completeness of certain data used in the valuation of these intangible assets. (AS 2201.42 and .44)

The firm's approach for testing the fair value of these acquired intangible assets was to review and test management's process. The firm did not sufficiently test the accuracy and completeness of certain data that the issuer used to value these acquired intangible assets because its procedures were limited to comparing certain of these data to schedules the issuer had obtained from the acquired company. (AS 2502.39)

In addition the firm did not sufficiently test certain assumptions underlying the forecasted revenue that the issuer used to value one of these intangible assets beyond inquiring of management and comparing these assumptions to an issuer-prepared schedule. (AS 2502.26 and .28)

The firm did not test or in the alternative test any controls over the completeness of a system-generated report that it used to make its selections to test the operating effectiveness of a control over the allocation of acquisition-related costs. (AS 1105.10)

During the year the issuer completed a business combination where the issuer's operations from before the transaction remained on the issuer's existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company's operations. The issuer engaged a specialist to assist it in determining the fair value of the loans acquired and the deposits assumed in connection with the business combination. The firm selected for testing various controls over the acquired loans and assumed deposits data that were provided to and used by the company's specialist. The firm did not identify and test any controls over the accuracy and completeness of certain of the data from the legacy systems that were used in the operation of these controls. (AS 2201.39)

The firm did not perform sufficient procedures to test the fair value of certain liabilities assumed because it did not perform any procedures to test or test any controls over the accuracy and completeness of a report used in its testing. (AS 1105.10)

During the year the issuer acquired a business that resulted in an acquired intangible asset. The firm did not perform any procedures to test or identify and test controls over the accuracy and completeness of issuer-produced data it used to evaluate the reasonableness of a significant assumption. (AS 1105.10)

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 test the accuracy and completeness of certain issuer-produced data used by the company's specialist to develop a significant assumption. (AS 1105.A8a)

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 test the accuracy and completeness of historical financial information produced by the issuer that (1) the firm used in evaluating the reasonableness of certain of these assumptions developed by the issuer and (2) was used by the company's specialist to develop another of these assumptions. (AS 1105.10 and .A8a)

During the year the issuer acquired a business and engaged specialists to determine the fair values of certain acquired assets using various significant assumptions. The following deficiencies were identified: · The firm used certain issuer-produced reports in its substantive testing of the existence of acquired inventory but did not perform procedures to test or test controls over the accuracy and completeness of these reports. (AS 1105.10)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to (1) evaluate the relevance and reliability of certain external data that the company's specialist used to develop assumptions considered significant by the firm and (2) test the accuracy and completeness of certain issuer-produced data that the company's specialist used to develop other assumptions also considered significant by the firm all of which were used by the company's specialist to determine the fair values of these intangible assets. (AS 1105.A8a)

During the year the issuer acquired a business entity and used an external specialist to determine the fair value of the acquired intangible assets. The firm's approach for testing the fair value was to review and test management's process. The firm did not sufficiently (1) evaluate the reasonableness of forecasts and (2) test the accuracy and completeness of data that the issuer provided to the external specialist because it limited its procedures to inquiry of management. (AS 1210.12)

During the year the issuer acquired a business and determined the fair value of the acquired intangible assets using forecasted sales and cash flows and other assumptions including customer attrition rates. The following deficiencies were identified: · In addition the firm did not perform any procedures beyond inquiring of management to test the aspect of this control related to the issuer's evaluation of the accuracy and completeness of the historical revenue data used to determine the attrition rates. (AS 2201.42 and .44)

The issuer used historical cost data as an input to determine the fair value of certain acquired intangible assets. The firm did not sufficiently test the accuracy and completeness of these cost data because its procedures were limited to inquiring of management comparing the cost data to unaudited information and determining that certain costs were appropriately excluded. (AS 2502.39)

The issuer engaged an independent qualified reserve engineer ('company's specialist') to estimate its oil and gas reserves ('reserve estimates') which were then used in the (1) calculation of depreciation depletion and amortization; (2) impairment analysis of long-lived assets; and (3) valuation of a business combination. The reserve estimates were also used in the operation of certain controls over the above activities that the firm selected for testing. The firm did not identify and test any controls over the (1) accuracy and completeness of information prepared by the issuer (2) relevance and reliability of data from external sources and (3) methods and assumptions; all of which were used by the company's specialist to develop the reserve estimates. (AS 2201.39)

The firm's approach for substantively testing the reserve estimates was to test the issuer's process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: · Test the accuracy and completeness of information prepared by the issuer and used by the company's specialist to develop the reserve estimates; (AS 1105.A8a)

During the year the issuer acquired a business and engaged a specialist to determine the fair value of the acquired loans. The company's specialist determined this fair value based on discounted cash flows it developed using various inputs and assumptions including expected credit losses loan risk ratings certain loan attributes and whether certain loans should be designated as purchased with credit deterioration. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of the acquired loan information that the issuer provided to the company's specialist that the specialist used to determine the fair value of the acquired loans. (AS 2201.39)