Explorer

During the year the issuer acquired multiple businesses. The firm selected for testing controls over the accounting for business combinations including the issuer's reviews of the valuation of certain acquired assets. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

The firm selected for testing a control that included the issuer's review of the reasonableness of the revenue-growth assumptions used in the valuation of certain assets acquired and liabilities assumed. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the revenue-growth assumptions. (AS 2201.42 and .44)

The firm selected for testing a control over the review of the valuation of assets acquired and liabilities assumed in a business combination. The firm did not evaluate the specific review procedures that the control owner performed to assess the accuracy of the inventory information used to determine the valuation of the inventory acquired. (AS 2201.42 and .44)

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 evaluate the specific review procedures the control owner performed to assess the reasonableness of certain significant assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing controls that included the issuer's review of the valuation of acquired loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the (1) reasonableness of the assumptions the issuer used to develop the fair value of these loans and (2) accuracy and completeness of certain data used in the operation of these controls. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)

The firm's internal inspection program had inspected this audit reviewed these areas and also identified the deficiencies below. During the year the issuer acquired a business. The firm selected for testing controls that consisted of the issuer's reviews of the fair values of tangible assets acquired and liabilities assumed. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the fair values of certain of these tangible assets acquired and liabilities assumed. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing various controls over the accounting for the business combination which included the issuer's reviews of the significant assumptions used in the valuation of certain assets acquired and liabilities assumed. In testing the aspects of these controls related to the review of these assumptions the firm did not evaluate the review procedures that the control owners performed including the criteria that the control owners used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing a control over the valuation of certain acquired loans that consisted of the issuer's review of the significant assumptions that the issuer used in the valuation of these loans including the discount rate. The firm did not evaluate the specific review procedures the control owner performed to review two important components the issuer used to determine the discount rate. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing controls over the accounting for the business combination which included the issuer's reviews of the data and significant assumptions that the issuer used in the valuation of certain obligations assumed in this acquisition. The firm did not evaluate the review procedures that the control owners performed including the criteria that the control owners used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing a control that included the issuer's review of the significant assumptions used in the valuation of the intangible assets acquired in this transaction. The firm did not evaluate the review procedures that the control owners performed including the criteria that the control owners used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing a control over the accounting for this business combination which included the issuer's review of the significant assumptions including forecasted revenue and EBITDA margins that the issuer used in the valuation of the acquired intangible assets. The firm did not evaluate the review procedures that the control owners performed to assess the reasonableness of the forecasted revenue and EBITDA margins including the criteria that the control owners used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing controls that consisted of the issuer's review of the cash-flow forecasts used in the valuation of certain acquired intangible assets. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of a revenue assumption underlying the cash-flow forecasts. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing controls over the accounting for the business combination which included the issuer's review of the assumptions underlying the cash-flow forecasts used in the valuation of the acquired intangible assets. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) In connection with our review the issuer reevaluated its controls over accounting for business combinations and concluded that a material weakness existed that had not been previously identified. The issuer subsequently revised its report on ICFR to reflect this material weakness and the firm revised its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report.

During the year the issuer acquired a business. The issuer accounted for an acquired investment using the equity method and determined the fair value of certain acquired intangible assets using cash-flow forecasts. The following deficiency was identified: · The firm selected for testing controls over the accounting for this business combination which included the issuer's review of assumptions used in these cash-flow forecasts. The firm did not evaluate the specific review procedures the control owner performed to assess (1) the appropriateness of the accounting for this investment and certain acquired assets and (2) the reasonableness of certain of these assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business and determined the fair value of certain acquired intangible 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 evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owners performed to assess (1) the fair values of certain tangible assets acquired and liabilities assumed and (2) the reasonableness of certain of these assumptions. (AS 2201.42 and .44)

The firm selected for testing a control that consisted of the issuer's review of the assets acquired and liabilities assumed. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of the recorded amounts of certain assets acquired and liabilities assumed. (AS 2201.42 and .44)

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 selected for testing three controls that consisted of the issuer's reviews of the fair value of these acquired intangible assets. For the third control the firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business and determined the fair value of certain acquired intangible assets using cash-flow forecasts. The issuer recorded subsequent adjustments to the provisional fair value of these acquired intangible assets during the measurement period. 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 used in these cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess (1) the reasonableness of certain of these assumptions and (2) whether the subsequent adjustments were based on new information obtained about facts and circumstances that existed as of the acquisition date. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business. The issuer assigned certain acquired loans a risk rating which was a significant assumption in estimating the fair value of the acquired loans. The following deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of the credit quality of these acquired loans including the assigned loan risk ratings. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the assigned loan risk ratings. (AS 2201.42 and .44)

During the year the issuer completed a business combination and determined the fair value of the acquired intangible assets using several assumptions. The firm selected for testing a control that included management's review of the fair value of the acquired intangible assets. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the assumptions. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these significant assumptions. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owners performed to assess the reasonableness of these loan risk ratings. (AS 2201.42 and .44)

During the year the issuer completed multiple business combinations. The firm selected for testing a control that included a review of the cash-flow forecasts and assumptions that the issuer used in determining the fair value of the acquired intangible assets. The firm did not evaluate the review procedures the control owner performed to assess the reasonableness of the prospective financial information and certain assumptions used in determining the fair value of the acquired intangible assets including the criteria that the control owner used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

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 evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

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 evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)

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 one control over the final valuation of acquisitions that included the review of data that the company's specialist had used to develop certain assumptions that were used to determine these fair values. The firm did not evaluate the specific review procedures that the control owners performed to assess the reliability of these data. (AS 2201.42 and .44)

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 evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing a control that consisted of a review of certain assumptions underlying the cash-flow forecasts that the issuer used to determine the fair value of certain acquired intangible assets. The firm did not evaluate the review procedures performed including the criteria the control owner used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired multiple businesses including commercial loan portfolios that consisted of various subtypes. The following deficiencies were identified: · The firm selected for testing a control that consisted of the review of the external valuation reports that the issuer used to determine the fair value of the loans acquired in these business combinations. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the prepayment rate assumptions that the external valuation specialist used to estimate the fair value of the acquired commercial loans. (AS 2201.42 and .44)

The issuer engaged an external specialist to assist in determining the fair value of certain intangible assets acquired in a business combination. The following deficiency was identified: · The firm selected for testing controls that consisted of management's review of certain information prepared by the issuer and other data inputs all of which were used by the company's specialist to determine the fair value of certain intangible assets acquired in the business combination. The firm did not test an aspect of the controls related to the accuracy of certain data that the issuer provided to the company's specialist. Further with respect to certain assumptions in the information used by the company's specialist the firm did not (1) evaluate whether the thresholds used by the control owners to evaluate the reasonableness of certain assumptions were sufficiently precise to detect misstatements that could be material (2) evaluate the specific review procedures that the control owners performed to assess the reasonableness of those assumptions and (3) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of another assumption. (AS 2201.42 and .44)

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 selected for testing a control that included the issuer's review of the future production volumes assumption but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant non-financial assumptions that were developed and used by the company's specialists. (AS 2201.42 and .44)

During the year the issuer acquired several businesses. The firm selected for testing controls that included the issuer's review of the business combinations. The firm did not evaluate the specific review procedures that the control owners performed over the appropriateness of the accounting treatment the fair value of the acquired intangible assets and the allocation of the purchase price. (AS 2201.42 and .44)

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 selected for testing a control that consisted of the issuer's review of the external specialist's valuation report. The firm did not evaluate the review procedures that the control owner performed including the criteria that the control owner used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

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 selected for testing controls that consisted of the issuer's reviews of the recognition and fair values of acquired assets including the assumptions used. The firm did not evaluate the specific review procedures that the control owners performed to assess (1) the reasonableness of certain assumptions (2) the fair value of acquired inventory and (3) whether all identifiable intangible assets were recognized. (AS 2201.42 and .44)

The firm's internal inspection program inspected this audit and reviewed the Revenue and Business Combination areas but did not identify the deficiencies below. 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 deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of the recognition and fair values of acquired assets including the assumptions used. The firm did not evaluate the specific review procedures that the control owners performed to assess (1) the reasonableness of certain assumptions and (2) whether all identifiable intangible assets were recognized. (AS 2201.42 and .44)

During the year the issuer acquired certain businesses and used an external specialist to determine the fair value of acquired intangible assets. The firm selected for testing three controls that consisted of reviews over (1) management's assumptions used by the external specialist (2) the valuation reports prepared by the external specialist and (3) acquisition accounting memoranda. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business entity. The firm selected for testing a control over the review of valuation of the assets acquired and liabilities assumed in the business combination. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

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: · The firm selected for testing a control that included reviews of the reasonableness of the (1) revenue-growth assumptions underlying the forecast for the acquired business and (2) attrition-rate assumptions. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the revenue-growth assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business and determined the fair value of the acquired intangible assets using forecasted cash flows. The following deficiencies were identified: · The firm selected for testing a control that included the review of the reasonableness of the forecasted cash flows for the acquired business including an assessment of the reasonableness of the revenue-growth assumptions underlying these cash flows. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the revenue-growth assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset based on a valuation model that used forecasted revenue and gross margin assumptions as inputs. The firm selected for testing a control that included the review of the reasonableness of these assumptions. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the forecasted revenue and gross margin assumptions. (AS 2201.42 and .44)

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 selected for testing a control that included the issuer's review of the expected credit loss assumptions used to value the acquired loans but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)

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 (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer determined the fair value of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions including future production volumes and certain adjustment factors. The following deficiencies were identified: · The firm selected for testing a control that included the issuer's review of the future production volume assumptions used for unproved properties but did not evaluate the specific review procedures the control owner performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)

During the year the issuer acquired a business. The firm selected for testing a control that consisted of management's review of the assumptions and related supporting documentation used in the valuation of assets acquired and liabilities assumed. The firm did not evaluate the review procedures that the control owners performed including the criteria that the control owners used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired certain businesses and engaged an external specialist to estimate the fair values of the acquired intangible assets. The issuer provided the specialist with financial projections and other data that were used in the valuations. The following deficiencies were identified: · The firm selected for testing a control that included management's review of certain assumptions used in the valuations. The firm did not evaluate the review procedures that the control owner performed including the criteria that the control owner used to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows that assumed significant revenue growth and improved gross margins. The following deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of the significant assumptions it used to determine the fair value of this asset. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the revenue growth rate and gross margin assumptions. (AS 2201.42 and .44)

During the year the issuer acquired multiple businesses and engaged a specialist to assist in the determination of the fair values of certain assets acquired using forecasted cash flows and other assumptions. The following deficiencies were identified: · The firm selected for testing a control over the valuation of the assets acquired and liabilities assumed that included the reviews of the assumptions the issuer and the company's specialist used in these forecasted cash flows and other assumptions used to determine these fair values. In its testing of the operating effectiveness of this control the firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of a significant assumption for one of the business combinations selected for testing. (AS 2201.44)

The firm selected for testing a control consisting of reviews of the reasonableness of assumptions used in the valuation of assets acquired and liabilities assumed in a business combination. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)