Explorer

The issuer's deferred tax liabilities were primarily related to timing differences between book and tax depreciation expense for property and equipment. The firm did not perform any substantive procedures to test tax depreciation. (AS 2301.08)

The firm did not perform any substantive procedures to test or in the alternative test any controls over the accuracy and/or completeness of certain data the firm used in its substantive testing of income taxes. (AS 1105.10)

The firm did not perform any substantive procedures to evaluate the issuer's assessment of its compliance with transfer-pricing regulations for intercompany transactions. (AS 2301.08)

The firm's internal inspection program inspected this audit and reviewed the revenue area but did not identify the deficiency below. The firm did not perform any substantive procedures to test certain of the issuer's income tax disclosures. (AS 2301.08)

The firm did not perform any substantive procedures to test the valuation allowance that the issuer recorded against its deferred tax assets beyond inquiring of management. (AS 2501.07)

The firm did not perform any substantive procedures to test certain deferred tax assets beyond comparing certain information from the supporting schedules that the issuer used to calculate these deferred tax assets to the general ledger. (AS 2301.08)

The firm did not perform any procedures to determine whether the issuer's presentation of a certain tax receivable as a current asset was appropriate. (AS 2301.08)

The firm did not perform any substantive procedures to test the issuer's income tax provision deferred income tax accounts income tax accruals and related disclosures. (AS 2301.08)

The firm did not perform procedures to test the issuer's income tax provision and deferred tax accounts because its procedures were limited to inquiring of management and comparing forecasted taxable income to historical financial information and written plans. (AS 2301.08)

The firm did not perform sufficient substantive procedures to test the income tax expense and deferred taxes recorded for the issuer's foreign operations because the firm's procedures were limited to comparing balances from the tax provision to supporting documentation for only a small number of deferred tax assets and for only two of the issuer's foreign subsidiaries. (AS 2301.08)

The issuer reported an income tax benefit from tax exemptions that a foreign tax authority granted the issuer. These exemptions were subject to compliance with certain conditions. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate the issuer's compliance with those conditions. (AS 2301.08)

With respect to the issuer's transfer pricing related to intercompany transactions the following deficiencies were identified: · The firm did not perform any substantive procedures to assess the issuer's compliance with its transfer-pricing methodology for intercompany transactions. (AS 2301.08)

With respect to the issuer's disclosures related to its permanent reinvestment of foreign earnings the following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate the potential effects of the changes in federal tax laws on the issuer's disclosures related to its permanent reinvestment of foreign earnings. (AS 2301.08)

The firm did not perform any substantive procedures to evaluate the effects of the changes in federal tax laws on the issuer's state and local taxes. (AS 2301.08)

The firm did not perform any substantive procedures to (1) test the adjusted taxable income amount that the issuer used to determine its business interest deduction and (2) evaluate the issuer's assertion that it did not meet the requirements to calculate and record a BEAT. (AS 2301.08)

The firm did not perform any procedures to evaluate the issuer's identification and recognition of uncertain tax positions taken. (AS 2301.08) Unrelated to our review the issuer reevaluated its accounting for income taxes including uncertain tax positions and concluded that material misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K and disclosed that the financial statements should no longer be relied upon.