Explorer

The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced data and reports it used in developing an independent expectation of another significant assumption. (AS 1105.10)

The firm did not perform procedures to test or test any controls over the accuracy and completeness of the revenue streams used in its impairment testing of these intangible assets. (AS 1105.10)

The firm selected for testing a control that included the issuer's review of its disclosures related to revenue intangible assets and segment reporting. The firm did not identify and test any controls over the accuracy and completeness of the data and reports that the control owner used in the operation of this control for these disclosures. (AS 2201.39) In connection with our review the issuer reevaluated its controls over its disclosures and concluded that a material weakness existed that had not been previously identified. The issuer subsequently revised its report on ICFR to reflect this material weakness and the firm modified its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report.

The firm used certain of these data and reports in its substantive testing of these disclosures but did not perform any procedures to test or test any controls over the accuracy and completeness of these data and reports. (AS 1105.10) In connection with our review the issuer reevaluated its controls over its disclosures and concluded that a material weakness existed that had not been previously identified. The issuer subsequently revised its report on ICFR to reflect this material weakness and the firm modified its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report.

The issuer completed an asset acquisition including the purchase of certain intangible assets. The issuer engaged an external specialist to estimate the fair value of the acquired intangible assets. The firm did not determine the likely sources of potential misstatements associated with these acquired intangible assets to identify and test controls that addressed the risks of misstatement for the relevant assertions including controls over the accuracy and completeness of issuer-prepared information provided to the external specialist. (AS 2201.30 and .39)

The firm's approach for testing the fair value of the intangible assets acquired in the asset acquisition was to review and test management's process. The following deficiencies were identified: · The firm did not perform any substantive procedures to test or in the alternative test any controls over the accuracy and completeness of issuer-prepared information provided to the external specialist. (AS 1210.12)