Explorer

The firm selected for testing a control that consisted of the review of the categorization of certain derivatives within the fair value hierarchy as set forth in FASB ASC Topic 820 Fair Value Measurement. The firm did not evaluate the specific procedures the control owner performed to assess the reasonableness of the categorization within the fair value hierarchy. (AS 2201.42 and .44)

The issuer's determination of whether to present gains and losses on derivative trades on a gross or net basis in the issuer's income statement was dependent on how the derivative trades were designated in the issuer's derivatives system. The firm did not identify and test any controls that addressed whether derivative trades had been appropriately designated in the system by the issuer's traders. (AS 2201.39)

The issuer held a portfolio of derivatives and investment securities (collectively 'investments') which were carried at fair value. - The firm selected for testing another control that consisted of management's review and approval of certain adjustments to derivative values for counterparty credit risk. The firm did not identify and test any controls over the accuracy of certain data used in the operation of this control. (AS 2201.39)

The issuer recorded oil revenue based on volumes produced from each well; the issuer's ownership interest in each well varied from well to well. The firm did not identify and test any controls over the accuracy of the volume data by well used to record revenue. (AS 2201.39)

The firm did not identify and test any controls over the observability of the pricing inputs at the individual instrument level that the issuer used to determine the categorization of its investments and derivatives within the fair value hierarchy as set forth in FASB ASC Topic 820. (AS 2201.39)