Explorer

The firm selected for testing a control that included the issuer's review of triggering events as potential indicators of goodwill impairment. In its testing of the operating effectiveness of this control the firm did not identify that the issuer's evaluation did not consider certain adverse market conditions and deteriorating financial results that arose before and after year end. (AS 2201.44)

The firm did not identify and test any controls that addressed whether corporate assets and liabilities were appropriately allocated to the issuer's reporting units. (AS 2201.39)

The issuer performed its annual analysis of goodwill for potential impairment as of an interim date. The following deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's quarterly assessment of qualitative and quantitative factors to determine whether indicators of potential impairment of goodwill existed. The firm did not identify that this control was not designed to identify and evaluate certain qualitative indicators of potential impairment. (AS 2201.42)

The firm's post-issuance monitoring 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 issuer's identification of reporting units in accordance with FASB ASC Topic 350 Intangibles – Goodwill and Other. (AS 2201.39)

The firm identified certain deficiencies in the control environment. The firm however did not consider the effect of these deficiencies in other areas of the audit in (1) forming conclusions about the design and operating effectiveness of the controls in those areas and (2) determining the level of control reliance used in the design of its substantive procedures in those areas. (AS 2201.42 .44 and .B6; AS 2301.34)