Explorer

The firm's approach for substantively testing the valuation of a significant transaction was to test the issuer's process which included the use of projected financial information developed by the issuer using significant assumptions related to sales volume for the forecasted period. The firm did not sufficiently evaluate the reasonableness of these assumptions because it limited its procedures to inquiry of management and review of internal plans without taking into account the issuer's ability to carry out its planned course of action. (AS 2501.16 and .17)

During the year the issuer entered into certain transactions. The firm did not identify and appropriately address departures from GAAP related to the issuer's accounting for two transactions. (AS 2810.30)

During the year the issuer entered into certain transactions. With respect to one other transaction the firm did not identify and evaluate the significance to the issuer's financial statements of a departure from GAAP related to the issuer's accounting for this transaction. (AS 2810.30)

During the year the issuer entered into certain transactions. The firm did not evaluate whether the issuer appropriately accounted for another aspect of this transaction. (AS 2810.30)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test the fair value of certain aspects of this transaction. (AS 2501.07)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test the existence and completeness of certain aspects of this transaction. (AS 2301.08)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not identify and evaluate GAAP departures related to the issuer's omission of and inaccurate disclosures related to this significant transaction. (AS 2810.30 and .31)

During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test whether the issuer appropriately accounted for certain aspects of this transaction. (AS 2301.08)

During the year the issuer entered into a significant transaction. In connection with this transaction the issuer terminated a previous arrangement and as a result recognized a loss. The firm did not evaluate the reasonableness of a significant assumption the issuer used to estimate the loss that it recognized. (AS 2501.16)

The issuer engaged in a significant transaction. The firm did not perform any procedures to evaluate whether the transaction was accounted for in conformity with GAAP. (AS 2301.08)

The issuer engaged in a significant transaction. The firm did not perform any procedures to evaluate whether the transaction was accounted for in conformity with GAAP. (AS 2301.08)

The firm selected for testing a control that consisted of management's review of the accounting for a significant transaction. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of an estimate related to the significant transaction. (AS 2201.42 and .44)

The firm selected for testing a control that consisted of management's review of the accounting for a significant transaction. The issuer engaged a company specialist to assist in developing an estimate related to this significant transaction. The firm did not perform procedures beyond obtaining general industry information to evaluate the reasonableness of certain significant assumptions that were developed by the issuer and used by the company specialist. Further the firm did not perform any procedures to evaluate the relevance and reliability of the general industry information. (AS 1105.04 and .06; AS 2501.16)

During the year the issuer entered into a significant transaction. The following deficiency was identified: • The firm did not identify and evaluate certain departures from GAAP related to the issuer's accounting for and disclosures associated with this transaction. (AS 2810.30 and .31)

During the year the issuer entered into a significant transaction. The following deficiency was identified: • The firm did not evaluate the appropriateness of certain other aspects of the issuer's accounting for this transaction. (AS 2301.08)

During the year the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer's presentation of this transaction in the financial statements. (AS 2810.30 and .31)

During the year the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain required disclosures related to this transaction. (AS 2810.30 and .31)

The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform procedures to evaluate the accounting for the transaction including the subsequent accounting. (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 issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform procedures to evaluate the presentation and disclosures related to the transaction. (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 issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not evaluate the business purpose (or lack thereof) of the transaction that appeared unusual due to its timing size or nature including whether it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts indicating the transaction was significant and unusual. (AS 2401.67)

The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform any procedures to test the valuation of aspects of the transaction. (AS 2501.07)

The issuer entered into certain significant transactions during the year. The firm did not evaluate the business purpose (or lack thereof) of these transactions that appeared unusual due to the 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 these transactions. (AS 2401.67)

In addition the firm did not perform procedures to test the transactions including the appropriateness of the accounting treatment the valuation and the related disclosures. (AS 2301.08)

The firm did not perform substantive procedures to evaluate whether the issuer appropriately accounted for certain significant transactions in accordance with GAAP beyond reading the contractual agreements and inquiring of management. (AS 2301.08)

During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not perform substantive procedures to test whether the issuer's accounting for and presentation of these transactions was in accordance with GAAP. (AS 2301.08)

During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not perform substantive procedures to test the fair value of certain aspects of these transactions beyond obtaining and testing the mathematical accuracy of the issuer's estimates. (AS 2501.07)

During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not identify and evaluate the issuer's omission of certain disclosures related to these transactions required by FASB ASC Topic 820 Fair Value Measurement. (AS 2810.30 and .31)

The firm selected for testing a control that consisted of the issuer's review of the initial accounting treatment of significant transactions. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow-up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44)

The firm selected for testing a control that consisted of the issuer's review of the initial accounting treatment of significant transactions. The firm did not identify and test any controls over the review of the subsequent accounting treatment of these significant transactions. (AS 2201.39)

The firm did not perform procedures to test the issuer's conclusion regarding the subsequent accounting treatment of the significant transactions beyond reviewing contractual agreements and certain issuer information. (AS 2301.08)

In performing procedures to evaluate the accounting treatment of these transactions the firm used the work of the company's specialist as audit evidence. The firm did not perform any procedures to use the work of the company's specialist as audit evidence. (AS 1105.A1 - .A10; AS 2301.08)

Deficiencies evaluating specialist work and accounting treatment for two significant, unusual transactions.

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not identify that one of the valuation reports prepared by the company's specialist was used for a different purpose than its stated intention and evaluate its use for that purpose. (AS 1105.A9)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform substantive procedures to determine whether the issuer identified and recorded all aspects of the transactions. (AS 2301.08 and .11)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform substantive procedures to test certain estimates related to these transactions beyond testing the mathematical accuracy of the issuer's documentation. (AS 2501.07)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist. (AS 1105.A8b)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to evaluate the relevance and reliability of certain data used by the company's specialist. (AS 1105.A8a)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate certain other significant assumptions used by the company's specialist. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist did not (1) perform any substantive procedures to evaluate the reasonableness of significant assumptions developed by the company's specialist and significant assumptions developed by the issuer (2) evaluate whether external data that the company's specialist used to develop certain significant assumptions were relevant and reliable and (3) evaluate the relevance and reliability of data it used in its procedures. (AS 1105.04 .06 .A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to test the fair value of certain other accounts and whether they were appropriately recorded in accordance with GAAP. (AS 2301.08 and .11; AS 2501.07)

During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not identify and evaluate a GAAP departure related to the issuer's omission of certain required disclosures. (AS 2810.30 and .31)

The firm did not perform any substantive procedures to test or in the alternative identify and test any controls over the accuracy and completeness of certain system-generated data used in the firm's testing of significant transactions. (AS 1105.10)

The firm did not perform any procedures to test a significant transaction. (AS 2301.08)

The firm did not identify and evaluate a departure from GAAP related to the transaction. (AS 2810.30 and .31)

The firm did not perform any procedures to evaluate the issuer's accounting treatment of certain significant transactions. (AS 2301.08)

In addition the firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain required disclosures related to these significant transactions. (AS 2810.30 and .31)

For certain significant transactions the firm did not sufficiently evaluate whether an assumption used to value these transactions represented its fair value because it did not consider certain contrary evidence. (AS 2502.26 .28 .31 and .36)

For certain significant transactions the firm did not evaluate whether these transactions were recorded in the appropriate period and at the appropriate amount in conformity with GAAP. (AS 2810.30)