Explorer

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

The firm's approach for testing one type of revenue included performing tests of details for a sample of transactions from one day during the year. The firm did not perform any procedures to test the population of transactions in the remaining days of the year. (AS 2315.24)

The firm did not perform procedures to test or test controls over the accuracy of certain system-generated data that it used to test certain revenue. (AS 1105.10)

The firm's approach for testing one type of revenue included performing tests of details for a sample of transactions from one day during the year. The firm did not perform sufficient procedures to test the transaction price for the sample of transactions because it limited its procedures to testing that the issuer received certain cash. (AS 2301.08 and .13)

The firm's approach for testing a second type of revenue included performing tests of details for a sample of transactions. The firm identified differences in its testing for certain transactions. The firm did not (1) consider the nature and cause of the differences; (2) project the differences to the remaining revenue population; and (3) evaluate the results and take appropriate action. (AS 2315.26 .27 and .28)

The firm did not perform any substantive procedures to test a third type of revenue. (AS 2301.08 and .13)

The issuer entered into agreements with counterparties some of whom were related parties to provide services to the issuer's customers. The issuer charged the counterparties a nonrefundable fee which the issuer recorded as revenue at the time of the agreement for facilitating the arrangement between the counterparty and the customer. The firm did not evaluate whether all of the criteria for revenue recognition under FASB ASC Topic 605 Revenue Recognition had been met including whether (1) services had been performed and (2) collectability was reasonably assured. (AS 2301.08; AS 2810.30)

The issuer entered into agreements with counterparties some of whom were related parties to provide services to the issuer's customers. The issuer charged the counterparties a nonrefundable fee which the issuer recorded as revenue at the time of the agreement for facilitating the arrangement between the counterparty and the customer. With respect to the counterparty agreements with related parties discussed above the firm did not (1) obtain an understanding of the business purpose of the transactions; (2) evaluate whether the issuer had properly identified all related parties and relationships and transactions with related parties; and (3) evaluate whether all related party transactions were disclosed in conformity with FASB ASC Topic 850 Related Party Disclosures. (AS 2410.03 .12 .14 and .17)

The firm did not perform any procedures to test revenue recognition beyond documenting invoices were checked for certain revenue transactions. (AS 2301.08 and .11)

In addition the firm did not identify and evaluate a departure from GAAP related to the omission of certain disclosures required by FASB ASC Topic 235 Notes to Financial Statements and FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

The firm did not perform any procedures to test revenue beyond documenting invoices were checked for total revenue. (AS 2301.08)

The firm did not evaluate (1) whether the issuer was recognizing revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers and (2) whether the revenue disclosures were accurate in light of certain information documented in the firm's work papers. (AS 2301.08)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiency below. The firm did not perform procedures to evaluate whether the recognition of revenue and related disclosures regarding the number of performance obligations in the financial statements were in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiency below. The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 606. (AS 2810.30 and .31)

The firm did not identify and evaluate departures from GAAP related to the issuer's inaccurate disclosures that it recognized revenue in conformity with FASB ASC Topic 605 Revenue Recognition which was superseded by FASB ASC Topic 606 Revenue from Contracts with Customers prior to the year under audit. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its disclosures of revenue recognition and determined that the disclosures were inaccurate. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected the disclosures in a subsequent filing. The firm reissued its report on the financial statements.

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

In addition the firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .13)

The firm did not perform procedures to test the issuer's restated revenue disclosures discussed. (AS 2301.08)

The firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08)

The firm did not perform procedures to test whether certain revenue recognition criteria had been met including whether delivery had occurred and collectability was reasonably assured. (AS 2301.08)

The firm did not identify and evaluate the significance to the financial statements of a departure from GAAP related to the issuer not adopting FASB ASC 606 Revenue from Contracts with Customers and the omission of the required disclosures. (AS 2810.30 and .31)

The firm did not evaluate whether the issuer was acting as either a principal or agent for each good or service in the contract and was appropriately recognizing revenue on either a gross or net basis. (AS 2810.30)

The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain IT system data used in its substantive testing of revenue. (AS 1105.10)

The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified: · The firm's approach for testing revenue included sending confirmation requests to a sample of the issuer's customers. The firm did not consider performing procedures to address the risks associated with electronic responses such as verifying the source and contents of the confirmation responses. (AS 2310.29)

The following deficiency was identified: · The firm did not perform sufficient procedures to test the occurrence of certain revenue because the firm did not perform any procedures to test whether the performance obligations had been met prior to the recognition of the revenue. (AS 2301.08 and .13)

The following deficiency was identified: · The firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in conformity with IFRS 15 Revenue from Contracts with Customers because the firm limited its procedures to revenue recognized from a single customer and did not perform any procedures to evaluate the issuer's recognition of revenue from the remaining customers. (AS 2301.08 and .13)

The following deficiency was identified: · The firm did not perform any procedures to evaluate the sufficiency of the issuer's disclosures regarding certain of its revenue recognition policies. (AS 2301.08 and .13)

The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified: · The firm selected for testing a control that consisted of management's review of a billing workbook to ensure that the calculations and billing details were accurate. The firm did not identify and test any controls over the accuracy and completeness of a system-generated report and the accuracy of certain other data used in the operation of this control. (AS 2201.39)

The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified: · The firm selected for testing a control that consisted of management's review of a billing workbook to ensure that the calculations and billing details were accurate. The firm did not evaluate the specific review procedures that the control owner performed to identify billing changes for review. (AS 2201.42 and .44)

The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified: · The firm's approach for testing revenue included sending confirmation requests to a sample of the issuer's customers. The issuer electronically sent the confirmation requests to the customers on behalf of the firm and the firm received the responses to the confirmation requests electronically. The firm did not maintain control over the confirmation requests through direct communication with the intended recipients of the confirmation requests. (AS 2310.28)

The firm did not identify and evaluate a departure from GAAP related to the recognition of revenue for a tax credit which was not in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

The firm did not perform sufficient substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606 because the firm did not evaluate all terms and conditions included in the issuer's contracts that could affect the recognition of revenue. (AS 2301.08 and .13)

The firm did not perform any procedures to evaluate the relevance and reliability of information obtained from external sources that it used to test revenue. (AS 1105.04 and .06)

With respect to the firm's substantive procedures the following deficiency was identified: · The firm did not perform procedures to test or sufficiently test controls over as discussed above the accuracy and completeness of information and reports that it used in its substantive procedures to test revenue. (AS 1105.10)