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The firm did not identify and test any controls over the issuer's evaluation of whether there were any terms and conditions outside of the sales orders that created enforceable rights and obligations which could affect the recognition of revenue pursuant to the FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2201.39)

The issuer recognized revenue at a point in time. In its evaluation of the issuer's revenue recognition the firm did not evaluate the specifications of the issuer's products and contracts in determining if there were practical limitations on whether the products had an alternative use in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30) In connection with our review the issuer reevaluated its controls over the evaluation of the point in time method of revenue recognition 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 recognized revenue from custom products at a point in time. In its evaluation of the issuer's revenue recognition the firm did not evaluate (1) the specifications of the custom products in determining if there were practical limitations on whether the products had an alternative use and (2) whether the issuer's customary business practice of not enforcing its contractual right to payment on cancelled orders renders this right to be unenforceable in conformity with FASB ASC Topic 606. (AS 2810.30)

For one business unit the firm's substantive procedures to test revenue consisted of testing a sample of transactions. For certain of the transactions it selected for testing the firm was unable to obtain evidence demonstrating that the performance obligation had been satisfied when revenue was recognized. The firm did not consider the effect of these unexamined transactions on its evaluation of the sample results. (AS 2315.25)

For one type of revenue the firm did not identify and test any controls over the issuer's identification and evaluation of contract terms that could affect revenue recognition. (AS 2201.39)

The issuer recognized revenue from contracts with customers that included either standard or nonstandard terms. Certain contracts included an estimate of variable consideration in the transaction price. The following deficiencies were identified: · The firm selected for testing controls that included the issuer's identification and evaluation of contracts with nonstandard terms. The firm did not identify and test any controls over the completeness of certain information that the control owners used in the operation of these controls. (AS 2201.39) In connection with our review the issuer reevaluated its accounting for this revenue and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. The issuer also reevaluated its controls over revenue and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR and the firm revised and reissued its report on the effectiveness of the issuer's ICFR to include this additional material weakness.

The issuer offered various forms of sales incentives to customers that were recorded as a reduction of revenue with a corresponding liability for sales incentives earned but not yet settled. The following deficiencies were identified: · The firm did not identify and test any controls over the (1) identification and evaluation of sales incentives that may affect revenue recognition and (2) presentation and disclosure of sales incentives in the financial statements. (AS 2201.39)

For a third type of revenue consisting of three categories the following deficiencies were identified: · The firm did not identify and test any controls over the identification and evaluation of contract terms that would affect revenue recognition. (AS 2201.39) Unrelated to our review the issuer reevaluated its controls over revenue 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 other material weaknesses discussed herein 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's contracts with customers included standard and nonstandard terms. The firm's substantive procedures included an evaluation of the terms for a sample of the issuer's contracts with customers. The firm did not evaluate the nonstandard contract terms included in these contracts and whether these terms could have had an effect on revenue recognition. (AS 2301.08 and. 13)

The issuer recognized revenue based on contracts with customers that included standard and nonstandard terms. The firm did not identify and test any controls over the issuer's identification and evaluation of contract terms other than pricing that could affect revenue recognition. (AS 2201.39)

The firm's substantive procedures included an evaluation of the terms for a sample of the issuer's contracts with customers. The firm did not evaluate the nonstandard contract terms included in these contracts and whether these terms could have had an effect on revenue recognition. (AS 2301.08 and .13)

The issuer used two information-technology (IT) systems to process and record certain revenue transactions related to services provided to its customers; one of these systems was maintained by an external service organization. The following deficiencies were identified: · With respect to the other IT system the firm selected for testing a control over access by employees of the issuer to this system and identified control exceptions related to inappropriate access for numerous employees. The firm concluded that this control was operating effectively based on its evaluation of these exceptions and the effectiveness of a complementary control and that the combination of these two controls addressed the risks of inappropriate access. The firm's conclusion was inappropriate because the complementary control was not designed to operate during the fourth quarter of the issuer's fiscal year and therefore the two controls discussed above did not address the risks related to inappropriate access to this system as of the date of management's assessment. (AS 2201.48)

The issuer recognized revenue from certain contracts as single performance obligations satisfied over time. With respect to the issuer's revenue recognition: The firm did not identify and test any controls over the issuer's identification and evaluation of contract terms with its customers that could affect revenue recognition. (AS 2201.39)

The issuer recognized revenue from certain contracts as single performance obligations satisfied over time. With respect to the issuer's disclosures of its unsatisfied performance obligations: The firm did not identify and test any controls over the issuer's identification and evaluation of contracts that could be cancelled by the customer which could affect the issuer's disclosures of unsatisfied performance obligations. (AS 2201.39)

The firm selected for testing a sample of revenue transactions. In its evaluation of the issuer's revenue recognition the firm did not evaluate whether the identification of performance obligations and the allocation of the transaction price to the performance obligations were appropriate given the existence of contradictory evidence. (AS 2301.08; AS 2810.03)

The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm's ICFR audit: • The firm did not identify and test any controls over the issuer's evaluation of certain customer contract terms to ensure that the corresponding revenue was recognized in conformity with IFRS. (AS 2201.39) In connection with our review the issuer reevaluated its controls over revenue including IT controls and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR and the firm revised and reissued its report on ICFR to include these additional material weaknesses.

The issuer entered into certain revenue arrangements during the year. The firm did not perform procedures beyond comparisons to issuer-produced reports to test this revenue including testing the valuation of certain aspects of revenue. (AS 2301.08 and .11; AS 2501.07)

Certain of the issuer's revenue arrangements included multiple performance obligations. In its evaluation of the issuer's revenue recognition for these arrangements the firm did not evaluate beyond reading certain issuer-prepared memorandums (1) whether the issuer identified all performance obligations in its customer contracts and (2) certain contractual terms and conditions that could affect the issuer's revenue recognition. (AS 2301.08)

The issuer used multiple service organizations to host and/or maintain and manage IT systems that the issuer used to initiate process and record transactions related to certain revenue for another business unit. The following deficiencies were identified: · The firm identified a control deficiency related to the issuer's evaluation of service auditor reports for certain service organizations. The firm identified and tested three compensating controls that it believed would mitigate this deficiency but did not sufficiently evaluate the effect of these controls because it (1) determined that one of these controls was ineffective and (2) did not identify that the control owner of the other two controls was an individual the firm had identified as having inappropriate access to the systems hosted by these service organizations. (AS 2201.68)