Explorer

The firm selected for testing a control that consisted of the issuer's review of the fair value of certain assets. The firm identified a deficiency in the operating effectiveness of this control. The firm identified and tested compensating controls that it believed would mitigate this deficiency. The firm did not identify that these other controls were not designed to address whether these assets were appropriately recorded at fair value. (AS 2201.68)

For certain other of these assets the following additional deficiencies were identified: · The issuer used a service organization for the recordkeeping of these assets and this service organization used sub-service organizations for certain functions. The firm did not obtain an understanding of or test any relevant controls at these sub-service organizations. (AS 2201.39 and .B19)

The firm selected for testing a control that consisted of management's review of the reserve over certain portions of this asset. The firm did not evaluate the 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 consisted of management's review of the reserve over certain portions of this asset. The firm did not identify and test any controls over the reserve for other portions of this asset. (AS 2201.39)

The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control that consisted of the review of the existence of another portion of these assets. The firm did not sufficiently test this control because it did not evaluate whether the control as designed addressed the entire portion of these assets. (AS 2201.42 and .44)

The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control that consisted of the automated calculation of the recorded value for a portion of these assets and tested the control by reviewing a screenshot of the system configuration subsequent to year end. The firm did not test (1) whether the control had changed since year end and (2) the automated calculation beyond obtaining a screenshot of the system configuration. (AS 2201.42 and .44)

The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control that consisted of the automated calculation of the recorded value for another portion of these assets but did not perform procedures to test this control. (AS 2201.42 and .44)

The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control related to certain assets that was being performed quarterly at all locations. The firm did not test whether (1) the control operated consistently at all locations; (2) all such assets at each location were subject to the control; (3) variances that exceeded the issuer's threshold were appropriately investigated and resolved; and (4) adjustments that the issuer made as a result of the control were appropriately approved and recorded. (AS 2201.42 and .44)

The firm selected for testing a control over the existence of certain assets. The firm did not evaluate how the issuer determined how frequently asset items would be reviewed and whether the issuer reviewed those items as frequently as intended. (AS 2201.42 and .44)