Explorer

The firm's approach for substantively testing the fair values of certain assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate certain significant assumptions the issuer used to determine these fair values. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the specialist's procedures were limited to reading an issuer-prepared analysis and obtaining data from external sources that indicated a range of possible assumptions without evaluating whether the issuer had a reasonable basis for its selection of assumptions. (AS 1201.C6 and .C7; AS 2501.16)

The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data and/or reports used in the operation of certain controls over a certain asset. (AS 2201.39)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The issuer engaged a specialist to determine the fair value of certain assets using assumptions developed by the issuer and the specialist. The firm's approach for substantively testing the fair value of these assets was to test the issuer's process. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the accuracy and completeness of certain information the issuer used to develop a significant assumption. (AS 1105.10)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The issuer engaged a specialist to determine the fair value of certain assets using assumptions developed by the issuer and the specialist. The firm's approach for substantively testing the fair value of these assets was to test the issuer's process. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the accuracy and completeness of information the specialist used to determine the fair value of certain assets. (AS 1105.A8a)

The firm did not identify and test any controls over the accuracy and completeness of system-generated information used by the issuer in the operation of certain controls. (AS 2201.39)

The firm did not perform any substantive procedures to test or identify and test any controls over the accuracy and completeness of system-generated information used in its substantive testing of these assets. (AS 1105.10)

The firm's substantive procedures to test the existence and valuation of certain assets consisted of testing a sample of items. The firm did not perform sufficient procedures to test these assets because it did not test the completeness of the issuer-prepared report from which the sampled items were selected (AS 1105.10)

The firm did not perform procedures to test the fair value of a certain asset beyond performing recalculations of an issuer-prepared schedule. (AS 2501.07)