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The issuer recognized revenue from two of its business units based in part on labor hours recorded in a timekeeping system hosted by a service organization. The following deficiencies were identified: · The firm used labor hours from this timekeeping system in its testing of this revenue and related accounts. The firm did not perform any procedures to test or sufficiently test controls over the accuracy and completeness of these labor hours. (AS 1105.10)

The firm's internal inspection program inspected this audit reviewed the Revenue and Related Accounts area and also identified the deficiencies below. For the unbilled portion of this revenue the following additional deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of revenue journal entries and related support. The firm did not test the aspect of this control that addressed the accuracy and completeness of certain information used to record revenue. (AS 2201.42 and .44)

The firm's internal inspection program inspected this audit reviewed the Revenue and Related Accounts area and also identified the deficiencies below. For another business unit the issuer recognized certain revenue over time based on costs incurred to date relative to total estimated costs to complete these contracts. Certain of this revenue included revenue from contract modifications that had not yet been approved by customers. The following deficiencies were identified: · The issuer engaged a specialist to assist it in estimating the amount of revenue to be recognized from certain unapproved contract modifications using various significant assumptions. The firm did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist or by the issuer (2) test the accuracy and completeness of information produced by the issuer that was used by the company's specialist and (3) evaluate whether the methods used by the company's specialist were appropriate under the circumstances. (AS 1105.A8a-c; AS 2501.16)

The issuer recorded revenue net of customer sales incentives and returns. The following deficiencies were identified with respect to one business unit: · The firm selected for testing a control that consisted of the issuer's review of sales returns. The firm did not identify and test any controls over the accuracy and completeness of return information used in the operation of this control. (AS 2201.39)

The issuer recorded revenue net of customer sales incentives and returns. The following deficiencies were identified with respect to one business unit: · The firm did not perform any procedures to test or test controls over the accuracy and completeness of a report produced by the issuer that it used in its substantive testing of the sales incentive reserve. (AS 1105.10)

For certain contracts the issuer recognized revenue over time based on costs incurred to date relative to total estimated costs to complete. The firm selected for testing a control that included the issuer's review of the (1) revenue calculations (2) accuracy and completeness of certain related information and (3) corresponding journal entries. In its testing of the operating effectiveness of this control the firm did not test these aspects. (AS 2201.44)

The firm performed tests of details over a sample of revenue and related accounts transactions. The firm did not perform procedures to test or test any controls over the completeness of certain system-generated reports from which it made its selections for testing. (AS 1105.10)

The issuer used multiple information technology (IT) systems to initiate process and record transactions related to revenue and related accounts and recognized revenue as the respective performance obligations were satisfied. The following deficiency was identified: The firm selected for testing a control that consisted of the issuer's review and approval of certain revenue-related transactions. The firm did not identify and test any controls over the accuracy and completeness of certain system-generated data used in the operation of the control. (AS 2201.39)

The issuer used multiple information technology (IT) systems to initiate process and record transactions related to revenue and related accounts and recognized revenue as the respective performance obligations were satisfied. The following deficiency was identified: The firm selected for testing a control that consisted of the issuer's review and approval of a revenue-related calculation. As a result of the deficiencies in the firm's testing of certain controls discussed above the firm did not perform sufficient procedures to test the accuracy and completeness of certain information used in the operation of this control. (AS 2201.42 and .44)

The issuer used multiple information technology (IT) systems to initiate process and record transactions related to revenue and related accounts and recognized revenue as the respective performance obligations were satisfied. The following deficiency was identified: The firm did not perform procedures to test or test any controls over the completeness and/or accuracy of certain system-generated data used in its substantive testing of revenue and related accounts. (AS 1105.10)

The firm did not perform substantive procedures to test or sufficiently test controls over the completeness of a system-generated report that the firm used in its substantive testing of revenue transactions. (AS 1105.10)

The firm selected for testing various controls over the processing and recording of certain revenue. The firm did not identify and test any controls over the accuracy and/or completeness of certain data and reports the control owners used in the operation of these controls. (AS 2201.39)

With respect to two types of revenue the following deficiencies were identified: · For the second type of revenue the firm used issuer-produced delivery data in its substantive testing but did not perform any procedures to test or test any controls over the accuracy and completeness of these data. (AS 1105.10)

The firm selected for testing an automated control over the appropriateness of the prices that the issuer used to record revenue. The firm did not identify and test any controls over the accuracy and completeness of certain pricing data used in the operation of this control. (AS 2201.39)

The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based in part on forecasts of expected future sales rebates and chargebacks. The following deficiencies were identified: · The firm selected for testing various controls that included the issuer's reviews of the significant assumptions used to develop these accruals. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data and reports used in the operation of two of these controls. (AS 2201.39)

The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based in part on forecasts of expected future sales rebates and chargebacks. The following deficiencies were identified: · The firm used certain issuer-produced data and reports in its testing of accrued rebates and chargebacks but did not test or test any controls over the accuracy and completeness of these data and reports. (AS 1105.10)

The firm's approach for substantively testing revenue and related accounts was to review and test management's process. The following deficiencies were identified: - The firm did not perform any procedures to test or in the alternative test any controls over the accuracy and completeness of certain disaggregated information generated from the issuer's system and used to estimate revenue and related accounts. (AS 1105.10)

The firm did not perform procedures to test the issuer's conclusion that an allowance for doubtful accounts was not necessary beyond testing the issuer's accounts receivable aging report for clerical accuracy and completeness and testing certain subsequent cash receipts. (AS 2501.07)

For another source of revenue the firm did not perform any procedures to test or identify and test controls over the accuracy and completeness of a system-generated report it used to test the issuer's satisfaction of a performance obligation. (AS 1105.10)

The firm's internal inspection program had inspected this audit and reviewed the Revenue and Related Accounts area and also identified certain of the deficiencies below. The firm did not perform procedures to test or test controls over the accuracy and completeness of certain system-generated reports that it used to test certain other revenue. (AS 1105.10)

The issuer disclosed that it recognized revenue in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers. The firm did not perform any procedures to test or test any controls over the accuracy and completeness of data and reports produced by the issuer that the firm used in its testing of revenue. (AS 1105.10)

The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced system generated information it used to test unbilled revenue and accounts receivable. (AS 1105.10)

At the end of each year the issuer calculated and recorded an adjustment to defer a portion of revenue related to domestic and certain export sales for which the revenue recognition criteria had not been met. The firm did not identify and test any controls over the accuracy and completeness of the reports used by the issuer to identify sales transactions related to domestic and certain other export sales for which the revenue recognition criteria had not been met. (AS 2201.39)

With respect to the firm's substantive testing: · The firm did not perform procedures to test or (as discussed above) sufficiently test controls over the accuracy and completeness of certain system-generated data or reports that (1) the firm used to make its selections for testing and (2) the firm used in its substantive testing. (AS 1105.10)

The issuer engaged an external specialist to assist in developing an estimate of a related account. The firm selected for testing a control that consisted of the issuer's review of the estimate including the company's specialist's report. The firm did not identify and test any controls over the accuracy and completeness of certain data used in developing the estimate. (AS 2201.39)

The issuer recognized revenue at the time services were provided to its customers. The following deficiencies were identified: • The firm did not identify and test any controls over (1) the accuracy and completeness of reports generated from the issuer's IT systems and (2) the relevance and reliability of information obtained from external sources that the control owners used in the operation of these controls. (AS 2201.39)

To test revenue and related accounts the firm sent positive confirmation requests to the issuer's customers and performed certain other substantive procedures. The following deficiencies were identified: · The firm did not perform procedures to test or (as discussed above) test any controls over the accuracy and completeness of reports generated from the issuer's IT systems that it used in its testing. (AS 1105.10)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The firm did not perform any procedures to test or test any controls over the accuracy and completeness of a report it used to test certain other revenue and related accounts. (AS 1105.10)

The firm's approach to test revenue included confirming amounts billed with a sample of the issuer's customers. The firm did not test the accuracy and completeness of the data and reports used in determining if the performance obligation was satisfied for (1) confirmation responses that were not received and (2) other revenue transactions tested where confirmations were not requested. (AS 1105.10)

For a third type of revenue the firm relied on certain controls to reduce the nature timing and extent of its substantive procedures to test revenue. The following deficiency was identified: • The firm did not identify and test controls that addressed the completeness and accuracy of revenue transaction details used in the operation of an information-technology automated control selected for testing. (AS 2301.16)

For a third type of revenue the firm relied on certain controls to reduce the nature timing and extent of its substantive procedures to test revenue. The following deficiency was identified: • The firm did not test or identify and test any controls over the completeness and accuracy of certain system-generated data that was used to develop a significant assumption the issuer used to recognize revenue. (AS 1105.10)

For a second type of revenue the following deficiency was identified: • The firm did not test or identify and test controls over the completeness and accuracy of issuer-produced data the issuer used to develop significant assumptions used in measuring variable consideration for certain revenue of this type. (AS 1105.10)