Explorer

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm's testing of IT general controls (ITGCs) the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. With respect to change management: The issuer had various change management processes for these IT systems including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems including a control that consisted of the issuer's periodic review of access to the production environment. The following deficiencies were identified: · The firm did not evaluate the specific review procedures the control owner performed to determine whether user access to the production environment that had been previously granted continued to be appropriate. (AS 2201.42 and .44)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. With respect to change management: The issuer had various change management processes for these IT systems including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems including a control that consisted of the issuer's periodic review of access to the production environment. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of this control. (AS 2201.39)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. With respect to change management: The issuer had various change management processes for these IT systems including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems including a control that consisted of the issuer's periodic review of access to the production environment. The following deficiencies were identified: · To test certain other change management controls the firm selected changes from the issuer's change management tool but did not test or test any controls over the completeness of the population of changes from which it selected its samples for testing. (AS 1105.10)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. With respect to user access: · The firm selected for testing a control over user access for certain systems. The firm did not evaluate the specific review procedures the control owner performed to determine whether access was appropriately granted for the instances selected for testing. (AS 2201.42 and .44)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. With respect to user access: · The firm selected for testing a control over user access for certain systems. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owner used in the operation of this control. (AS 2201.39)

As a result of the firm's control testing deficiencies the firm did not perform sufficient substantive procedures to test certain revenue and deferred revenue because it did not test or sufficiently test controls over the accuracy and completeness of certain system-generated data or reports the firm used in its substantive testing including substantive analytical procedures. (AS 1105.10; AS 2305.16)

The firm did not identify and test any controls over information that the issuer manually entered into the revenue systems and used to record service revenue and deferred revenue. (AS 2201.39)

The firm identified control deficiencies related to controls over the review and approval of program changes for one of the issuer's revenue systems but did not evaluate the severity of these deficiencies. (AS 2201.62)

The firm selected for testing controls over the issuer's reviews of transaction reports and the resulting monthly journal entries used to record service revenue and deferred revenue. 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 used the information manually entered into the revenue systems in its substantive testing of this revenue but did not perform any procedures to test or (as discussed above) sufficiently test controls over the accuracy and completeness of this information. (AS 1105.10)

The firm did not perform procedures beyond inquiring of management to test certain deferred revenue. (AS 2301.08)

The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. The firm did not perform procedures to test or test any controls over the completeness of the system-generated reports from which it made its selections to test certain of these controls. (AS 1105.10)

The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. For one of these controls 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 sample sizes the firm used in its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because it used a proprietary accept/reject methodology that did not consider factors relevant to determining sample size for substantive testing. (AS 2301.37 and .42; AS 2315.16 .19 .23 and .23A)

The firm used a proprietary accept/reject methodology for substantive testing. With respect to deferred revenue the firm identified misstatements but did not reject the test and perform other audit procedures. (AS 2301.08)

To test the existence of deferred revenue the firm selected a sample of items for testing. The sample size the firm used in its substantive test of details was too small to provide sufficient appropriate audit evidence because the firm did not take into account the characteristics of the population in determining its sample size. (AS 2315.16 .23 and .23A)

To test certain unbilled receivables and deferred revenue the firm selected for testing unbilled receivables and deferred revenue that met specific criteria to evaluate whether the balances tested were properly recorded. The firm did not perform any substantive procedures to test the remaining population of unbilled receivables and deferred revenue from this revenue source. (AS 1105.27; AS 2301.08)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to certain revenue and deferred revenue. The following deficiency was identified: · The firm selected for testing certain automated controls over this revenue and deferred revenue that consisted of the configuration of the IT systems to automatically perform certain functions based on pre-established parameters and the firm used a 'test of one' approach to test these controls. The firm's testing of these automated controls using a sample of only one instance of each processing alternative was not sufficient because the firm did not test the configuration or programming of these controls or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.46)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to certain revenue and deferred revenue. The following deficiency was identified: · As a result of the deficiencies in the firm's testing of the automated controls described above the firm's testing of certain IT-dependent manual controls was not sufficient because those manual controls relied on the effectiveness of these automated controls. (AS 2201.46)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to certain revenue and deferred revenue. The following deficiency was identified: · The sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A)

The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to certain revenue and deferred revenue. The following deficiency was identified: · The firm did not perform procedures to evaluate the appropriateness of the method used by the issuer to recognize certain revenue. (AS 2301.08)

The issuer used multiple IT systems to initiate process and/or record transactions related to certain revenue receivables deferred revenue and inventory. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the following deficiency in the firm's testing of IT general controls (ITGCs) the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)

The issuer used multiple IT systems to initiate process and/or record transactions related to certain revenue receivables deferred revenue and inventory. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. The firm selected for testing various change management controls over certain IT systems that consisted of the documentation review testing and approval of changes prior to their migration into production. The issuer used certain other IT systems in the performance of these change management controls ('change management systems') and the firm made its selections for testing the change management controls from reports that were generated from the change management systems subsequent to year end. The firm did not perform sufficient procedures to test the completeness of the system-generated reports from which it made its selections for testing because the firm's use of the change management systems as the source of the population of changes relied on the automated functionality of those systems and the firm did not evaluate whether changes were made to the change management systems during the period from year end to the date of testing. (AS 1105.10)

The issuer used multiple IT systems to initiate process and/or record transactions related to certain revenue receivables deferred revenue and inventory. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the firm's ITGC testing deficiencies the firm did not perform sufficient substantive procedures as follows: · The firm used certain system-generated data to substantively test revenue receivables deferred revenue and inventory but did not test or (as discussed above) sufficiently test controls over the accuracy and completeness of this data. (AS 1105.10)

The issuer used multiple IT systems to initiate process and/or record transactions related to certain revenue receivables deferred revenue and inventory. In its testing of controls over these accounts the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the firm's ITGC testing deficiencies the firm did not perform sufficient substantive procedures as follows: · The sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A)

The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm's approach to testing certain revenue included reliance on controls. The firm did not identify and test controls over the accuracy and completeness of system reports that the issuer used in the operation of its controls that the firm selected for testing. (AS 2301.16)

The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm's approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A)

The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not perform any procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41)

The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not perform any procedures to test or identify and test controls over as discussed above the accuracy and completeness of a report used by the firm to test certain deferred revenue. (AS 1105.10)