Explorer

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows which included significant assumptions related to revenue growth rates for the forecast period. The following deficiencies were identified: · For certain years within the forecast period the firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not (1) evaluate significant differences between the issuer's forecasted rates and industry growth information it used to support these rates (2) evaluate whether these forecasted rates were consistent with the issuer's historical and recent experience and (3) take into account the issuer's ability to achieve these forecasted rates. (AS 2501.16 and .17)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows which included significant assumptions related to revenue growth rates for the forecast period. The following deficiencies were identified: · For the remaining years within the forecast period the firm did not perform any procedures to evaluate the reasonableness of the forecasted revenue growth rates. (AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were 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 in developing its independent expectations. (AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were identified: · The firm did not test or test any controls over the accuracy and/or completeness of certain data produced by the issuer and used by the firm in developing its independent expectations. (AS 1105.10)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were identified: · The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived. (AS 2501.22)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were identified: · For two of the acquired intangible assets the firm did not perform sufficient procedures to demonstrate it had a reasonable basis for an assumption it independently derived because the data it used to develop this assumption included unrelated data. (AS 2501.22)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were identified: · For two of the acquired intangible assets the firm did not evaluate the relevance of certain external data it used to develop its independent expectations. (AS 1105.04 and .06)

During the year the issuer acquired a business and engaged a specialist to determine the fair values of the acquired intangible assets and the provision for contingent consideration to be paid to the seller. The firm's approach for substantively testing the fair values of the acquired intangible assets was to develop independent expectations of the estimates. The following deficiencies were identified: · For one of the acquired intangible assets the firm used an auditor-employed specialist to evaluate a significant assumption developed by the company's specialist which the firm used in developing its independent expectation of this estimate. The firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because it did not evaluate the (1) relevance and reliability of external data that the company's specialist used to develop this assumption and (2) reasonableness of this assumption. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)

The firm did not evaluate whether in conformity with FASB ASC Topic 805 Business Combinations a separately identifiable intangible asset existed related to an agreement that was executed as part of the acquisition. (AS 2301.08)

The firm's approach for substantively testing the fair value of the contingent consideration to be paid to the sellers was to review and test the issuer's process. The firm's approach for evaluating the reasonableness of certain of the issuer's assumptions was to develop independent expectations of those assumptions. The firm did not compare the issuer's assumptions to these independent expectations which were affected by the audit deficiencies discussed above. (AS 2501.16)

During the year the issuer acquired a business and engaged a specialist to assist in determining the fair values of certain acquired assets and the related liabilities as of the acquisition date using various significant assumptions. This specialist also assisted the issuer in determining the fair values at year end. The following deficiencies were identified: · In evaluating the company's specialist's methods to determine these fair values as of the acquisition date the firm selected a sample of assets to evaluate whether the data and significant assumptions were appropriately applied. The firm's sample was too small to provide sufficient appropriate audit evidence because in determining the sample size the firm did not take into account tolerable misstatement and the allowable risk of incorrect acceptance. (AS 1105.A8c; AS 2315.16 .23 and .23A)

During the year the issuer acquired a business and engaged a specialist to assist in determining the fair values of certain acquired assets and the related liabilities as of the acquisition date using various significant assumptions. This specialist also assisted the issuer in determining the fair values at year end. The following deficiencies were identified: · In evaluating the company's specialist's methods to determine these fair values as of the acquisition date the firm selected a sample of assets to evaluate whether the data and significant assumptions were appropriately applied. For one category of these assets the firm did not evaluate whether the data and significant assumptions were appropriately applied to the complete population of these assets. (AS 1105.A8c)

During the year the issuer acquired a business and engaged a specialist to assist in determining the fair values of certain acquired assets and the related liabilities as of the acquisition date using various significant assumptions. This specialist also assisted the issuer in determining the fair values at year end. The following deficiencies were identified: · For these acquired assets and the related liabilities as of the acquisition date the firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist beyond comparing these assumptions to assumptions the issuer used in the prior year. (AS 1105.A8b)

During the year the issuer acquired a business and engaged a specialist to assist in determining the fair values of certain acquired assets and the related liabilities as of the acquisition date using various significant assumptions. This specialist also assisted the issuer in determining the fair values at year end. The following deficiencies were identified: · The issuer used a service organization to process and record transactions related to certain of these assets and the related liabilities which was the source of certain data used by the company's specialist. The firm's approach to testing these data upon acquisition and year end included reliance on controls at the service organization. The firm did not perform procedures to test or test the operating effectiveness of certain complimentary user controls over these data that were identified in the service auditor's report. (AS 1105.A8a; AS 2601.14)

For a sample of certain acquired assets as of the acquisition date and at year end the firm sent positive confirmation requests. For the confirmations that were not returned the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the recorded amounts were accurate as of the confirmation date. (AS 2310.31)

The firm used an auditor-engaged specialist to assist it with testing the fair values of certain assets and the related liabilities at year end which were determined by one of the company's specialists. The following deficiencies were identified: · The firm did not identify that the auditor-engaged specialist did not perform any procedures to evaluate the (1) reasonableness of significant assumptions developed by the company's specialist or by the issuer and (2) relevance and reliability of certain external data used by the company's specialist. (AS 1105.A8a and .A8b; AS 1210.09 and .12; AS 2501.16)

The firm used an auditor-engaged specialist to assist it with testing the fair values of certain assets and the related liabilities at year end which were determined by one of the company's specialists. The following deficiencies were identified: · The firm did not perform any procedures to test the accuracy or completeness of certain issuer-produced data used by the issuer to estimate the discount rates that the company's specialist used to estimate the fair values of one category of these assets and the related liabilities. (AS 1105.10)

The firm used an auditor-engaged specialist to assist it with testing the fair values of certain assets and the related liabilities at year end which were determined by one of the company's specialists. The following deficiencies were identified: · The firm did not sufficiently evaluate the appropriateness of the methods used by the company's specialist for this category of these assets and the related liabilities because it did not evaluate whether certain other information used was relevant to the estimate. (AS 1105.A8c)

During the year the issuer acquired two businesses. The firm did not perform any procedures to evaluate the reasonableness of certain significant issuer-developed assumptions that were used by another of the company's specialists to determine the fair values of acquired intangible assets as of the acquisition date and at year end. (AS 2501.16)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows which included significant assumptions related to sales growth product mix and pricing for the forecast period. The following deficiencies were identified: · The firm did not evaluate whether the issuer had a reasonable basis for (1) the product mix assumption and (2) another pricing assumption. (AS 2501.16)

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 a business and engaged a specialist to assist it in determining the fair values of certain acquired assets. The firm selected for testing a control that included the issuer's comparison of fair values determined by the company's specialist to fair values included in a separate valuation report received by the issuer. The firm did not identify and test any controls over the reasonableness of the fair values included in the separate valuation report used in the operation of this control. (AS 2201.39)

The firm used an auditor-employed specialist to assist it with testing the fair values of these acquired assets which were determined by the company's specialist. The auditor-employed specialist's approach consisted of developing independent expectations consisting of a range of the fair values for a selection of these assets. The firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because it did not evaluate whether the independent expectations of the fair values as a range encompassed only reasonable outcomes and were supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)

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)

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 multiple businesses. The following deficiencies were identified: · From one of these business combinations the firm did not sufficiently evaluate whether an assumption was consistent with historical and recent experience because it did not evaluate the significant differences between the assumption and this experience. Further when evaluating the issuer's ability to carry out its planned course of action the firm performed a sensitivity analysis for this assumption but did not evaluate the significant differences between the alternative assumptions it used in this analysis and the issuer's historical and recent experience. (AS 2501.16 and .17)

During the year the issuer acquired multiple businesses. The following deficiencies were identified: · The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 805 Business Combinations. (AS 2810.30 and .31)

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 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 several businesses. For one of these business combinations the issuer engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various significant assumptions developed by the issuer or the company's specialist. The following deficiencies were identified: · The firm used an auditor-employed specialist to evaluate the reasonableness of a significant assumption developed by the company's specialist that was used in the measurement of an acquired intangible asset. The firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because the auditor-employed specialist did not evaluate (1) whether this assumption was consistent with recent existing market information and (2) whether certain data the company's specialist used to develop this assumption were relevant to the assumption beyond observing that the data were from comparable industries. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)

During the year the issuer acquired several businesses. For one of these business combinations the issuer engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various significant assumptions developed by the issuer or the company's specialist. The following deficiencies were identified: · The firm used an auditor-employed specialist to evaluate the reasonableness of a significant assumption developed by the company's specialist that was used in the measurement of an acquired intangible asset. The firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because the auditor-employed specialist did not evaluate (1) whether this assumption was consistent with recent existing market information and (2) whether certain data the company's specialist used to develop this assumption were relevant to the assumption beyond observing that the data were from comparable industries. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)

During the year the issuer acquired several businesses. For one of these business combinations the firm did not perform any substantive procedures to test the existence of inventory at the acquisition date. (AS 2301.08)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows which included significant assumptions related to sales growth product mix and pricing for the forecast period. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reasonableness of the forecasted sales growth. (AS 2501.16)

During the year the issuer acquired a business and determined the fair value of an acquired intangible asset using forecasted cash flows which included significant assumptions related to sales growth product mix and pricing for the forecast period. The following deficiencies were identified: · The firm did not sufficiently evaluate the reasonableness of certain pricing assumptions because it limited its procedures to inquiry of management and review of internal plans without taking into account the issuer's ability to carry out its planned course of action. (AS 2501.16 and .17)

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 one of these assets the firm did not sufficiently evaluate the reasonableness of a significant assumption developed by the issuer because it did not perform any procedures to evaluate the reasonableness of a component of this significant assumption. (AS 2501.16)

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 did not identify and evaluate misstatements in certain required disclosures under FASB ASC Topic 470 Debt and FASB ASC Topic 805 Business Combinations related to the accounting for the purchase price allocation. (AS 2810.30 and .31)

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)

During the year the issuer acquired a business and determined the fair value of certain acquired intangible assets using various significant assumptions. The firm's approach for substantively testing the fair values of these assets was to test the issuer's process. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used in the valuation of these assets. (AS 2501.16)

During the year the issuer acquired a business including an intangible asset. The issuer developed assumptions to determine the fair value of the acquired intangible asset. The firm did not perform procedures beyond inquiry of management to evaluate the reasonableness of a significant assumption. (AS 2501.16)

The issuer determined the fair values of certain acquired assets using cash-flow forecasts. The following deficiency was identified: · The firm did not evaluate the reasonableness of the useful lives assigned to certain of the acquired assets 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 2501.16)

The issuer determined the fair values of certain other assets of the acquired business based on two previously completed acquisitions. The firm did not sufficiently evaluate whether the issuer had a reasonable basis for the significant assumptions the issuer used because the firm did not evaluate whether these previous acquisitions were comparable to this acquired business. (AS 2501.16)

During the year the issuer acquired multiple businesses and engaged specialists 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 any procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer including evaluating significant differences between the useful lives assigned to these intangible assets and the cash flow forecast periods used to determine their fair values. (AS 2501.16)

During the year the issuer acquired multiple businesses and engaged specialists 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 any procedures to evaluate the relevance and reliability of certain information that the issuer used to develop certain of these assumptions. (AS 1105.04 and .06)

During the year the issuer acquired multiple businesses and engaged specialists to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · For firm did not perform procedures to test the fair values of certain tangible assets acquired and liabilities assumed beyond reading an issuer-prepared memorandum. (AS 2501.07)

During the year the issuer acquired multiple businesses and engaged specialists to assist it in determining the fair values of certain acquired assets using various significant assumptions. The following deficiency was identified: · In its testing of the fair values of certain other acquired tangible assets the firm used a company's specialist's valuation report as audit evidence without performing procedures to evaluate the work of this specialist. (AS 1105.A1-.A9; AS 2501.07)

During the year the issuer acquired multiple businesses and engaged specialists 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 did not perform any procedures to test whether any deferred tax liabilities should have been recognized in connection with the business combinations. (AS 2301.08)

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 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 one of these business combinations the firm did not identify that the auditor-employed specialist did not sufficiently evaluate the relevance and reliability of this company's specialist's work because it did not identify inconsistencies between the measurement of the enterprise fair value estimated by this specialist compared to the fair value of the consideration transferred by the issuer. (AS 1105.A9 and .A10; AS 1201.C6 and .C7)

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: · In testing the fair values of certain acquired tangible assets the firm did not identify that the auditor-employed specialist did not evaluate the relevance and/or reliability of certain external information used by another of the company's specialists or the auditor-employed specialist. (AS 1105.04 .06 and .A8a; AS 1201.C6 and .C7)