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The firm did not perform procedures beyond vouching a sample of journal entries to bank statements to evaluate whether the issuer had satisfied its performance obligations before revenue was recognized. Further the firm did not perform any procedures to test the completeness of the sub-ledger it used to make its selection of journal entries. (AS 1105.10; AS 2301.08)

The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not (1) perform substantive procedures to evaluate whether the relevant revenue recognition criteria had been met prior to recognizing revenue and (2) perform any substantive procedures to address certain fraud risks. (AS 2301.08 and .13)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships among revenue accounts receivable deferred revenue and cash that the issuer recorded through journal entries. The firm did not perform sufficient procedures to test the appropriateness of certain information used in this analysis because it did not test that all of the cash data was subject to the controls selected for testing. (AS 1105.10)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships among revenue accounts receivable and cash that the issuer recorded through journal entries. The firm however did not perform procedures to test the appropriateness of the cash data used in this analysis. (AS 1105.10)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships between revenue and cash that the issuer recorded through journal entries. The firm however did not perform procedures to test the appropriateness of the cash data used in this analysis. (AS 1105.10)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships among revenue accounts receivable and cash that the issuer recorded through journal entries. The firm did not perform sufficient procedures to test the appropriateness of certain information used in this analysis because it did not perform procedures to test whether the cash receipts were relevant to the revenue being tested. (AS 1105.10)

The issuer recognized one type of revenue from arrangements with related parties that provided for the reimbursement of certain costs that the issuer incurred. The firm identified a fraud risk related to the issuer's allocation of costs to these arrangements. For these costs the firm did not perform a test of details to address this fraud risk. (AS 2301.13)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships among revenue accounts receivable and cash that the issuer recorded through journal entries. The firm however did not perform procedures to test the appropriateness of the cash data used in this analysis. (AS 1105.10)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships between revenue and cash that the issuer recorded through journal entries. The firm however did not perform procedures to test the appropriateness of the cash data used in this analysis. (AS 1105.10)

The firm's approach for substantively testing certain revenue consisted primarily of performing a software-assisted analysis which included performing procedures to test the accuracy of information used in this analysis. The software-assisted analysis was designed to test the relationships among revenue accounts receivable and cash that the issuer recorded through journal entries. The firm however did not perform procedures to test the appropriateness of the cash data used in this analysis. (AS 1105.10)

With respect to revenue for certain other business units that the firm subjected to less extensive audit procedures the following deficiencies were identified: · In determining the extent to which audit procedures should be performed the firm did not evaluate (1) the materiality of these business units and (2) whether the risks of material misstatement including a fraud risk related to certain revenue that the firm identified for the business units subject to more extensive audit procedures also applied to these business units. (AS 2101.11 and .12)

The firm did not evaluate the business purpose (or lack thereof) of the revenue transactions including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the transactions. (AS 2401.67)

The firm identified a fraud risk related to revenue. The firm did not perform tests of details over certain other revenue in response to the fraud risk. (AS 2301.13) Unrelated to our review the issuer reevaluated its accounting for certain 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 recognized revenue from product sales through multiple distribution channels and locations. The firm's substantive procedures to test revenue from one of the issuer's distribution channels consisted of (1) vouching a sample of receivables at year-end to subsequent cash collections (2) testing sales cut-off at year-end and (3) testing manual journal entries meeting certain criteria. In addition for locations meeting certain criteria the firm vouched a sample of sales transactions to supporting documentation. The firm did not perform sufficient substantive procedures to test revenue because the firm's procedures were limited to testing (1) receivables and sales transactions at or near year end (2) certain revenue recorded through manual journal entries and (3) sales transactions from certain locations selected in a manner that was not representative of the remaining population and as such the results of testing performed could not be projected to the remaining population. (AS 2301.08; AS 2315.24)

For the other two types of revenue arrangements the firm selected for testing controls that consisted of the review and approval of journal entries. The firm did not identify and test any controls over the accuracy of the data that the control owners used in the performance of these controls. (AS 2201.39)

For each of these business units the firm selected for testing a control that consisted of reviews of manual journal entries related to revenue. The firm did not test the operating effectiveness of these controls beyond inspecting documents that included signatures or other notations that indicated reviews performed as part of the controls had occurred. (AS 2201.44)

For certain business units the firm identified a fraud risk but did not perform any tests of details to address this fraud risk. (AS 2301.13)

The firm did not perform any substantive procedures to address an identified fraud risk related to revenue. (AS 2301.13)

The issuer entered into certain revenue arrangements during the year. The firm did not evaluate the business purpose (or lack thereof) of these arrangements that appeared unusual due to their timing size or nature including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the arrangements. (AS 2401.67)

For one of the issuer's reporting units: · The firm did not identify and test any controls that addressed the fraud risk of improper recognition of certain revenue at year end. (AS 2201.39)

For another business unit the firm did not perform any procedures to address an identified fraud risk related to revenue cut-off. (AS 2301.13)

The firm did not perform sufficient procedures to test certain revenue because the firm did not perform any test of details to address the fraud risk related to the occurrence of revenue. (AS 2301.08 and .13)

The firm did not perform a test of details to address an identified fraud risk related to certain revenue; (AS 2301.08 and .13)

The firm's substantive procedures to test revenue consisted of (1) testing a sample of revenue transactions and (2) performing substantive analytical procedures. The following deficiencies were identified: - The firm did not perform any procedures to address an identified fraud risk related to revenue cut-off. (AS 2301.13)

The firm did not evaluate the business purpose (or lack thereof) of certain revenue and revenue-related transactions including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the transactions. (AS 2401.67)