Explorer

The firm did not perform procedures to test the accuracy and completeness of amounts due from related parties beyond sending confirmation requests to certain related parties and inspecting evidence of partial repayment. (AS 2301.08 and .11; AS 2410.12)

The firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. Further the firm did not evaluate whether related party transactions were properly accounted for and disclosed in the issuer's financial statements. (AS 2410.14 and .17)

The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14)

The firm did not evaluate whether the issuer had properly identified all of its related parties and relationships and transactions with related parties including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14 and .17)

The firm selected for testing a control that consisted of the issuer's reconciliation of related party balances and transactions. The firm did not identify and test any controls over the completeness of a system-generated report used in the operation of this control. (AS 2201.39)

The firm selected for testing a control that included the issuer's review and approval of the pricing used in related party transactions. The firm did not perform procedures to test or test any controls over the completeness of a system-generated report from which it made its selections to test this control. (AS 1105.10)

The firm did not test certain related party transactions. Specifically the procedures performed to evaluate the completeness and accuracy of the financial statement disclosures about interest and accrued wages payable to a related party as well as obtaining a confirmation from the related party were performed after the issuance of the auditor's report. (AS 2301.08)

The issuer had certain loans that were due to a related party. The following deficiencies were identified: - The firm did not perform any procedures to evaluate the nature and terms of these loans. In addition the firm did not perform certain auditing procedures including procedures to evaluate the completeness and accuracy of the financial statement disclosures and obtaining signed copies of the loan agreements until after the issuance of the auditor's report. (AS 2301.08; AS 2410.12)