Explorer

The issuer identified impairment indicators related to a certain asset. The issuer engaged an external specialist to determine the asset's fair value and also relied upon its sale of the asset through a non-monetary transaction subsequent to year end in concluding that the asset was not impaired. The firm did not perform sufficient procedures to evaluate the issuer's conclusions. The following deficiencies were identified: • The firm did not test the data used by the external specialist to determine the fair value of the asset. (AS 1210.12)

The issuer identified impairment indicators related to a certain asset. The issuer engaged an external specialist to determine the asset's fair value and also relied upon its sale of the asset through a non-monetary transaction subsequent to year end in concluding that the asset was not impaired. The firm did not perform sufficient procedures to evaluate the issuer's conclusions. The following deficiencies were identified: • The firm did not test the fair value of the subsequent sale of this asset. (AS 2502.26 and .28)

The issuer engaged a valuation specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any procedures to evaluate the relevance and reliability of data from sources external to the issuer that were used by the company's specialist in developing significant assumptions. (AS 1105.A8a)

During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · The firm did not evaluate whether the issuer's accounting for this asset was in conformity with GAAP. (AS 2301.08 and .11)

For certain other of these assets the following additional deficiencies were identified: · The firm did not perform procedures to test or sufficiently test controls over the relevance and reliability of information produced by the service organization discussed above and used by the company's specialist to estimate the fair value of these assets. (AS 1105.A8a)

The firm did not evaluate the relevance and reliability of information used by an external specialist to determine the fair value of certain assets. (AS 2502.31)

The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified: · For the other expectation the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's conclusion appeared to contradict the issuer's assertion that these assets were not impaired and perform additional procedures or request the auditor-employed specialist to perform additional procedures to address the issue. (AS 1201.C7)

The issuer used an external specialist to determine the fair values of certain assets. With respect to one asset the firm did not sufficiently evaluate the forecasted increasing sales provided to the specialist because it did not evaluate how management's strategies could overcome continuous annual declines in revenues. (AS 1210.12; AS 2810.03)

With respect to other assets the firm selected a sample for testing. For certain items selected the firm did not obtain evidence to support certain information that was used by the specialist in determining their fair values. (AS 1210.12)