Explorer

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)

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)

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 reliability of the historical financial data beyond tracing this data to unaudited financial information. (AS 1105.04 and .06)

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 multiple businesses. The following deficiencies were identified: · The firm did not identify and evaluate the issuer's omission of certain disclosures that were required under FASB ASC Topic 805 Business Combinations. (AS 2810.30 and .31)

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 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 evaluate the relevance of certain external data that it used to develop its independent expectation. (AS 1105.04 and .06)

During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 805 Business Combinations. (AS 2810.30 and .31) 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 perform any procedures to evaluate the reliability of external information used to test accounts receivable at the acquisition date. (AS 1105.04 and .06) 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 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 sample size the firm used in its substantive procedures to test accounts receivable at the acquisition date was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement and the allowable risk of incorrect acceptance. (AS 2315.16 .23 and .23A) 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 perform any procedures to test the completeness of accrued liabilities at the acquisition date. (AS 2301.08) 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 evaluate whether the issuer should have recognized certain intangible assets acquired. (AS 2301.08) 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 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)

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 controlling interest of a business. The firm did not perform sufficient procedures to test whether the issuer's accounting of the business combination was in conformity with FASB ASC Topic 805 because the firm did not evaluate whether the issuer (1) appropriately recorded the acquisition consideration (2) identified and appropriately recorded all assets acquired liabilities assumed and non-controlling interests and (3) measured them at their respective acquisition-date fair values. (AS 2810.30)

During the year the issuer acquired a business. The following deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer (1) not measuring the acquisition consideration as of the acquisition date and (2) allocating the purchase price using the book value of assets acquired and liabilities assumed which was not in conformity with FASB ASC Topic 805 Business Combinations. (AS 2810.30) Unrelated to our review the issuer reevaluated its accounting for the business combination and concluded that a material misstatement existed related to the measurement of the acquisition consideration that had not been previously identified. The issuer subsequently corrected this misstatement 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 deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures that are required by FASB ASC Topic 805. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its accounting for the business combination and concluded that a material misstatement existed related to the measurement of the acquisition consideration that had not been previously identified. The issuer subsequently corrected this misstatement 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 deficiency was identified: · The firm did not perform any substantive procedures to determine whether the issuer identified and recorded all assets acquired. (AS 2301.08) Unrelated to our review the issuer reevaluated its accounting for the business combination and concluded that a material misstatement existed related to the measurement of the acquisition consideration that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements.

During the year the issuer merged with another company in a business combination. The firm did not evaluate whether the issuer appropriately recognized and measured this merger in conformity with FASB ASC Topic 805. (AS 2810.30)

During the year the issuer merged with another company in a business combination. The firm did not evaluate whether the issuer appropriately recognized and measured this merger in conformity with FASB ASC Topic 805 Business Combinations. (AS 2810.30)

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)

During the year the issuer acquired numerous businesses. The firm did not identify and test any controls over the valuation of the assets acquired and liabilities assumed in these business combinations. (AS 2201.39)

The firm did not perform any substantive procedures to test the valuation of the assets acquired and liabilities assumed in these business combinations. (AS 2502.15)

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)

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)

During the year the issuer acquired a business. The firm did not identify and test controls that addressed the valuation of certain assets acquired and liabilities assumed. (AS 2201.39) In connection with our review the issuer reevaluated its controls over the valuation of these assets acquired and liabilities assumed 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 modified its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report.

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)

The firm did not perform any substantive procedures to assess the reasonableness of management's assertion that the book value of the acquired property plant and equipment approximated its fair value. (AS 2502.26 and .28)

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)

During the year the issuer acquired multiple businesses including commercial loan portfolios that consisted of various subtypes. The following deficiencies were identified: · To substantively test the acquired commercial loans the firm selected certain loans and for each loan selected evaluated the reasonableness of the prepayment rate the loss given default and the annual loss rate assumptions used to estimate the fair value of these loans by comparing these assumptions to market-based ranges for commercial loans. The firm did not perform procedures to obtain evidence that this market information was precise enough to enable the firm to identify potential material misstatements in the valuation of the various subtypes of the acquired commercial loans. (AS 2502.26 .28 and .31)

During the year the issuer acquired multiple businesses including commercial loan portfolios that consisted of various subtypes. The following deficiencies were identified: · In determining its sample sizes used to test the acquired commercial loans the firm did not take into account tolerable misstatement. As a result the samples that the firm used to test the valuation of these loans were too small to provide sufficient appropriate evidence. (AS 2315.16 .23 and .23A)

During the year the issuer acquired a portfolio of loans and leases and accounted for the transaction as a business combination. The firm did not identify and test any controls over the valuation of the loans and leases acquired in this business combination. (AS 2201.39)

The firm did not perform any substantive procedures to test the valuation of the loans and leases acquired in this business combination. (AS 2502.15)

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 for the majority of the forecast period. The following deficiencies were identified: · For certain years within the forecast period the firm's procedures to evaluate the reasonableness of the revenue growth rates consisted of comparing the issuer's forecasted revenue growth rate to those reported in an industry publication over the same period. The firm did not evaluate significant differences between the issuer's forecasted revenue growth rates and the industry publication's growth rate for these years. (AS 2502.26 .28 .31 and .36)

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 for the majority of the forecast period. The following deficiencies were identified: · For certain other years within the forecast period the firm did not perform any procedures to evaluate the reasonableness of the forecasted revenue growth rates. (AS 2502.26 .28 and .31)

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 for the majority of the forecast period. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reasonableness of certain forecasted expenses beyond comparing the current-year forecasted expenses to actual expenses. (AS 2502.26 .28 and .31)

During the year the issuer acquired a business. The firm did not perform any substantive procedures to test the fair values of the assets acquired and the liabilities assumed. (AS 2501.07)

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)

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 did not perform any procedures to test or test any controls over the accuracy of certain data that the issuer provided to the company's specialist and used by the specialist to develop an assumption that was then used by the specialist to determine the fair value of certain intangible assets acquired in the business combination. (AS 1105.A8a)

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 did not perform procedures beyond documenting that certain disclosures were not material to evaluate whether the issuer made all required disclosures related to the business combination in conformity with FASB ASC Topic 805 Business Combinations. (AS 2301.08)

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 firm did not sufficiently evaluate the work of the auditor-employed specialist as it did not identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the valuation of the intangible asset because the auditor-employed specialist did not perform sufficient procedures to evaluate the work of the company's specialist as described below. (AS 1201.C6 and .C7)

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 relevance and reliability of data from external sources that the company's specialist used to develop an assumption that was then used to determine the fair value of the intangible asset. (AS 1105.A8a)