Explorer

The firm did not identify and evaluate the issuer's omission of a required disclosure under FASB ASC Topic 270 Interim Reporting related to the aggregate effect of a year-end adjustment that the issuer recorded in the fourth quarter. (AS 2810.30 and .31)

During the year the issuer recognized certain revenue upon its delivery of products to a customer and also delivered additional products to this customer in exchange for the return of products sold to the customer in the previous year. The firm did not identify and evaluate that the issuer's conclusion that certain criteria required to recognize revenue for the products sold to this customer had been met was not in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

During the year the issuer recognized certain revenue upon its delivery of products to a customer and also delivered additional products to this customer in exchange for the return of products sold to the customer in the previous year. The firm did not identify and evaluate that the issuer's conclusion that the exchange of products did not represent a product return was not in conformity with FASB ASC Topic 606. (AS 2810.30)

During the year the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified: · The firm did not identify and evaluate the issuer's omission of a required disclosure under FASB ASC Topic 606 Revenue from Contracts with Customers related to when performance obligations are satisfied under bill-and-hold arrangements. (AS 2810.30 and .31)

The firm selected a sample to test revenue transactions. The following deficiencies were identified: · For the transactions selected for testing the firm did not perform any procedures to evaluate the terms and conditions of the issuer's contracts with these customers to determine if the revenue was recognized in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures related to revenue. (AS 2810.30 and .31)

The issuer entered into contracts with certain customers which included terms and conditions specific to (1) minimum delivery amounts (2) pricing based on a market or index rate and/or (3) payment provisions in the event of default. The issuer recognized revenue from those contracts in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers. The firm did not perform any procedures to evaluate whether these contracts should have instead been accounted for as derivative instruments in conformity with FASB ASC Topic 815 Derivatives and Hedging. (AS 2301.08 and .13; AS 2810.03)

The following deficiencies were identified with respect to the firm's testing of revenue: · The firm did not perform sufficient procedures to evaluate whether the issuer appropriately recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers because the firm did not evaluate whether the transactions were an exchange for a good or service that was an output of the issuer's ordinary activities. (AS 2301.08 and .13)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of disclosures required by FASB ASC Topic 280 Segment Reporting related to revenue from certain customers. (AS 2810.30 and .31)

The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries: · The firm did not perform any procedures to evaluate whether (1) multiple contracts entered into at or near the same time with the same customer should be accounted for as a single contract and (2) costs associated with certain contracts were appropriately recorded as a reduction of revenue. (AS 2301.08 and .13)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain revenue disclosures required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

The issuer recognized revenue from multiple sources. The firm did not identify and evaluate a departure from GAAP related to (1) the issuer's omission of a revenue-related disclosure required by FASB ASC Topic 280 Segment Reporting and (2) the issuer's inaccurate disclosure regarding the amount of a certain type of revenue. (AS 2810.30 and .31)

The issuer entered into a contract with a customer that contained multiple products and services. The following deficiencies were identified: - The firm did not identify and appropriately address a departure from GAAP related to the issuer's recognition of all revenue under this arrangement up front which is not in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

The issuer entered into a contract with a customer that contained multiple products and services. The following deficiencies were identified: - The firm did not identify and appropriately address a departure from GAAP related to the issuer's omission of a disclosure required by FASB ASC Topic 280 Segment Reporting. (AS 2810.30 and .31)

The issuer entered into a contract with a customer that contained multiple products and services. The following deficiencies were identified: - The firm did not perform any substantive procedures to evaluate whether the issuer's conclusion that the products and services sold under this arrangement consisted of a single performance obligation was in conformity with FASB ASC Topic 606. (AS 2810.30)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not perform sufficient procedures to evaluate whether the issuer recognized revenue in conformity with certain aspects of International Financial Reporting Standard 15 Revenue from Contracts with Customers because the firm did not consider certain inputs that would have affected the recognition of revenue for certain sales transactions selected for testing. (AS 2810.30)

The firm did not identify and evaluate the significance to the notes related to the financial statements of the issuer's omission of a required disclosure under FASB ASC Topic 235 Notes to Financial Statements regarding its revenue recognition accounting policy for certain revenue. (AS 2810.30 and .31)

The firm did not identify that at the time of the audit the issuer's recognition of certain revenue from arrangements with multiple elements that consisted of software license and maintenance deliverables was not in conformity with FASB ASC Subtopic 985-605 Software Revenue Recognition. (AS 2810.30) In connection with our review the issuer reevaluated its accounting for these arrangements and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently restated its financial statements and the firm revised and reissued its report on the financial statements. The issuer also reevaluated its controls over the accounting for these arrangements 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 did not perform any substantive procedures to evaluate whether the issuer's treatment of professional services as separate performance obligations was in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

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 perform any substantive procedures to evaluate the issuer's contract terms with its customers to determine whether the issuer recognized this revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08)

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 perform any substantive procedures to identify whether the issuer's contracts could be cancelled by the customer and evaluate the effect of those contract terms to determine whether the issuer's disclosures of unsatisfied performance obligations were in conformity with FASB ASC Topic 606. (AS 2301.08)

The issuer disclosed the aggregate amount of transaction prices allocated to unsatisfied performance obligations and during the year made modifications to certain existing contracts that resulted in a change in the time frame for a performance obligation to be satisfied. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate the modifications to certain existing contracts to determine whether the issuer's disclosures of unsatisfied performance obligations were in conformity with FASB ASC Topic 606. (AS 2301.08)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a revenue-related disclosure required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

In its testing of revenue the firm did not evaluate whether the issuer appropriately recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

In addition the firm did not identify and appropriately address a departure from GAAP related to the issuer's (i) disclosure that it recognized revenue under FASB ASC Topic 605 Revenue Recognition when in fact it recognized revenue under FASB ASC Topic 606 and (ii) omission of certain disclosures related to FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not perform any procedures to evaluate the terms and conditions of a customer arrangement to determine whether the issuer appropriately recognized revenue under the arrangement in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

To test revenue the firm selected a sample of cash receipts from a journal of cash receipts. The following deficiencies were identified: · The firm did not perform procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13)

The firm did not perform procedures to evaluate whether the issuer recognized revenue in conformity with the relevant steps required under FASB ASC Topic 606. (AS 2301.08 and .13)

For certain other revenue the following deficiency was identified: · The firm did not perform procedures to evaluate whether the issuer's recognition of this revenue was in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08)

For certain other revenue the following deficiency was identified: · The firm did not identify and evaluate a GAAP departure related to the issuer's omission of disclosures related to significant payment terms for its customer contracts as required by FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not perform procedures to evaluate whether certain revenue was recognized in conformity with IFRS. (AS 2301.08)

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 perform any procedures to evaluate whether the issuer's recognition of certain revenue was in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13)

The issuer entered into a sales agreement with a new customer that contained various terms and conditions that afforded the issuer and the customer certain rights and obligations. The firm did not perform procedures to evaluate whether revenue from this sales agreement was recognized in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers beyond reading the issuer's revenue recognition memo the sales agreement and the bill of sale. (AS 2810.30)

The issuer engaged a manufacturer to produce and distribute certain of its products. The firm did not perform sufficient procedures to evaluate whether the issuer was acting as a principal or as the agent for this revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. Specifically in its evaluation the firm did not evaluate (1) the insurable risk of inventory (2) the manufacturer's discretion to set minimum prices for inventory sold to the issuer's customers and (3) the manufacturer's responsibility for honoring the limited warranty extended to the issuer's customers. (AS 2810.30)

The firm did not identify and evaluate the issuer's omission of certain disclosures required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

The firm did not identify and appropriately address a departure from GAAP related to the issuer's inaccurate disclosure that it recognized revenue in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers when it had not early adopted the new standard and was still recognizing revenue in accordance with FASB Topic ASC 605 Revenue Recognition. (AS 2810.30 and .31)

The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure related to revenue. (AS 2810.30 and .31)

The firm did not perform any procedures to evaluate (1) the terms and conditions of an arrangement under which the issuer recorded revenue and which involved other participants and a counterparty including the method used by the counterparty to allocate consideration to the issuer and other participants and (2) whether the revenue the issuer recognized under this arrangement was in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

The firm identified the issuer's omission of a required disclosure under FASB ASC Topic 606 Revenue from Contracts with Customers related to the disaggregation of revenue recognized over time and at a point in time. The firm concluded that the omission did not represent a material misstatement but did not evaluate the significance of a misstatement in the total amount of point-in-time revenue disclosed. (AS 2810.17)

The issuer entered into revenue arrangements with multiple performance obligations. The firm did not perform any substantive procedures to evaluate whether the issuer's identification of the performance obligations was in conformity with FASB ASC Topic 606 and whether such obligations had been satisfied before revenue was recognized. (AS 2810.30)

For certain revenue the firm did not identify and evaluate that the issuer's determination that it was acting as an agent was not in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30)

The firm did not identify and evaluate the issuer's omission of a required disclosure under FASB ASC Topic 606 related to how the issuer recognized this revenue. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its accounting and disclosures for this revenue and concluded that material misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K indicating that its previously issued financial statements should not be relied on and corrected these misstatements in a subsequent filing.

For this same type of revenue the firm did not identify and evaluate misstatements related to contract assets under FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not identify and evaluate the issuer's (1) misstatement in and (2) omission of certain disclosures related to the disaggregation of revenue that are required under FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not identify and evaluate a misstatement in a disclosure required under FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not identify and evaluate the issuer's omission of a disclosure required under FASB ASC Topic 250 Accounting Changes and Error Corrections related to a change in estimate. (AS 2810.30 and .31)

Certain of the issuer's revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the relative standalone selling prices. The firm selected a sample of these arrangements for testing. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate whether the issuer's identification of performance obligations was in conformity with FASB ASC Topic 606. (AS 2301.08 and .13)

The firm did not identify and evaluate the issuer's omission of and a misstatement in certain disclosures required under FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not identify and evaluate the issuer's omission of certain disclosures required under FASB ASC Topic 606. (AS 2810.30 and .31)