Explorer

The firm did not perform procedures to test revenue beyond tracing all revenue transactions to issuer-prepared invoices and evaluating the appropriateness of the issuer's revenue recognition policy. (AS 2301.08)

The issuer had certain receivables that were covered by security interests in related non-cash collateral. The firm did not perform sufficient procedures to evaluate the collectability of the receivables because its procedures were limited to confirming the value of the related collateral with the borrowers. (AS 2501.07)

The firm did not perform any procedures beyond inquiry to test the existence of certain cash. (AS 2301.08)

To test an amount due to a related party the firm sent a positive confirmation request with an amount that did not agree with the amount on the balance sheet. The firm received a response from the related party without any exceptions. The firm subsequently sent another request with the amount recorded on the balance sheet and received a response without any exceptions. The firm did not sufficiently evaluate the evidence provided by the two confirmations because it did not consider the reliability of the confirmations the nature of the exceptions between the two confirmations and whether additional evidence was needed. (AS 2310.33; AS 2810.03)

The firm did not perform any substantive procedures to test or in the alternative test controls over the completeness of information that the firm used in its substantive testing. (AS 1105.10)

The issuer recorded an adjustment to ensure that revenue was appropriately recognized at year end. The firm did not perform any procedures to test the adjustment to revenue. (AS 2301.08)

The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties including evaluating whether an interest-free loan agreement was a transaction with a related party. (AS 2410.14)

The firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable. For the confirmation requests that were not returned or that were returned without a response the firm did not perform alternative procedures. (AS 2310.31)

The firm did not perform procedures to examine material adjustments made to accounts receivable during the course of preparing the financial statements. (AS 2301.41)

The firm did not perform any procedures to test the allowance for doubtful accounts. (AS 2501.07)

The firm did not identify and evaluate that the issuer did not present an aspect of the statement of cash flows in conformity with FASB ASC Topic 230 Statement of Cash Flows. (AS 2810.30 and .31)

The firm did not perform any substantive procedures to test a disclosure related to cash. (AS 2301.08)

The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61)

The firm did not perform any substantive 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 any substantive procedures to evaluate the appropriateness of the issuer's accounting for an aspect of this significant account. (AS 2301.08)

The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform procedures to evaluate the relevance and reliability of information from external sources that the issuer used to develop significant assumptions. (AS 1105.04 and .06)

The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform any procedures to test or test any controls over the accuracy and completeness of issuer-produced information that the issuer used to develop significant assumptions. (AS 1105.10)

The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not perform procedures to test related party transactions and balances including the presentation of the transactions in the statement of cash flows beyond sending confirmation requests for the balances and inspecting evidence of cash receipts and payments. Further for certain confirmations that were not returned or that were returned without a response the firm did not perform alternative procedures. (AS 2310.31; AS 2410.12)

The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer beyond testing one input of one of these assumptions. (AS 2501.16)

The firm did not evaluate whether certain aspects of the issuer's disclosures related to this significant account were accurate including consideration of contradictory evidence included in the workpapers. (AS 2301.08; AS 2810.03)

The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. (AS 2410.14)

The firm did not perform procedures to test related party transactions and balances beyond confirming the transactions and inspecting evidence of certain cash receipts to and payments from related parties. (AS 2410.12)

The issuer did not include any disclosures related to its ability to continue as a going concern. Certain conditions and events existed that would indicate substantial doubt about the issuer's ability to continue as a going concern for a reasonable period of time. The firm did not perform any procedures to determine whether the issuer's lack of disclosures regarding its ability to continue as a going concern was in conformity with FASB ASC Topic 205 Presentation of Financial Statements. (AS 2301.08)

The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61)

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

The firm did not evaluate the completeness of the issuer's revenue disclosures required by FASB ASC Topic 606. (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)

The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61)

The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not identify and evaluate the issuer's omission of disclosures related to certain related party transactions required by FASB ASC Topic 850 Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)

The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not take any action in response to information regarding certain related party transactions that indicated possible illegal acts. (AS 2405.07 and .10)

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 did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13)

For certain other revenue the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized beyond obtaining issuer

During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to (1) evaluate the relevance and reliability of certain external data that the company's specialist used to develop assumptions considered significant by the firm and (2) test the accuracy and completeness of certain issuer-produced data that the company's specialist used to develop other assumptions also considered significant by the firm all of which were used by the company's specialist to determine the fair values of these intangible assets. (AS 1105.A8a)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the purchase price allocation and fair values of the acquired assets including certain goodwill and other intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the work of the company's specialist. (AS 1105.A6 - .A10)

The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the issuer had capitalized the costs associated with these intangible assets in accordance with IAS 38 Intangible Assets beyond inquiry of management and reading management's assessment of the intangible assets. (AS 2301.08 and .11)

The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform procedures to test the impairment expense recorded by the issuer related to these intangible assets beyond inquiry of management. (AS 2501.07)

The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform any procedures to evaluate how management determined whether any indicators of impairment existed with respect to these intangible assets at year end. (AS 2301.08 and .11)

The firm did not perform any procedures to evaluate whether certain assets met the definition of property plant and equipment in accordance with IAS 16 Property Plant and Equipment because the firm did not evaluate the business purpose of the assets beyond inquiry of management. (AS 2301.08)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the reasonableness of an assumption considered significant by the firm developed by the company's specialist and used by the specialist to determine the fair values of the intangible assets beyond determining that the selected value of the assumption was the midpoint in a range of potential assumptions from an external source used by the issuer. (AS 1105.A8b)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the relevance and reliability of certain industry and other external information provided by the issuer that was used by the firm to evaluate the reasonableness of the issuer's revenue forecast. (AS 1105.04 and .06)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform sufficient procedures to evaluate the reasonableness of the issuer's revenue forecasts used by the company's specialist to determine the fair values of the intangible assets because it did not (1) perform procedures to evaluate whether the issuer had a reasonable basis for these significant assumptions and (2) take into account the issuer's intent and ability to meet the revenue predictions including whether the issuer has the financial resources and/or other means to meet the projections. (AS 2501.16 and .17)

The firm used an external digital confirmation platform to confirm cash but did not perform any procedures to support its reliance on this digital platform's ability to maintain control over the confirmation requests and responses. (AS 2310.28)

The firm did not perform sufficient procedures to test a related party transaction because it did not (1) read the underlying documentation and evaluate whether the terms and other information about the transaction were consistent with explanations from inquiries and other audit evidence about the business purpose (or the lack thereof) of the transaction (2) determine whether the transaction had been authorized and approved in accordance with the issuer's established policies and procedures and (3) determine whether any exceptions to the issuer's established policies and procedures were granted. (AS 2410.12)

The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: • The firm did not perform any procedures to test (1) contractual arrangements to determine whether certain revenue was recorded in accordance with IFRS 15 Revenue from Contracts with Customers and (2) whether the issuer's performance obligations had been satisfied before revenue recognition beyond obtaining and reviewing internally generated customer invoices. (AS 2301.08 and .13)

The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: • The firm did not perform any procedures to test certain other revenue. (AS 2301.08 and .13)

During the year the issuer acquired a business and engaged an external specialist to assist in determining the purchase price allocation and fair values of the acquired assets including certain goodwill and other intangible assets. The following deficiency was identified. • The firm did not perform procedures to test the purchase price allocation and fair value of the goodwill and other intangible assets acquired in the business combination beyond obtaining and reading the valuation reports prepared by the company's specialist and agreeing amounts from those reports to the general ledger. (AS 2501.07)

The firm selected for testing certain controls to reduce the nature timing and extent of its substantive procedures over revenue and accounts receivable. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of certain information used in determining certain revenue ('type one' revenue). (AS 2301.16)