Explorer

The firm did not identify and evaluate the issuer's omission of disclosures related to the amount of revenue recognized in the current year from performance obligations satisfied (or partially satisfied) in previous years that were required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31)

The firm did not perform any substantive procedures to test certain receivables related to revenue. (AS 2301.08)

The firm did not perform any substantive procedures to test an investment. (AS 2301.08)

The firm did not perform substantive procedures to test the issuer's consolidation of VIEs beyond obtaining and reading an issuer memorandum. (AS 2301.08)

The firm selected key item transactions for testing revenue. The firm did not perform substantive procedures to test those transactions beyond comparing them to invoices. (AS 2301.08 and .13)

The firm selected key item transactions for testing revenue. The firm did not perform any substantive procedures to test the remaining population of revenue transactions. (AS 1105.27; AS 2301.08 and .13)

The firm selected an account receivable for testing but did not perform substantive procedures to test it beyond comparing it to invoices. (AS 2301.08)

The firm selected an account receivable for testing but did not perform any substantive procedures to test whether the account receivable was fully collectible. (AS 2501.07)

The firm did not perform substantive procedures to test inventory beyond comparing the balance to an issuer-produced report. (AS 2301.08)

The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)

The firm did not perform substantive procedures to test cash beyond comparing the amount to a copy of the bank statement obtained from the issuer. (AS 2301.08)

The issuer engaged a specialist to determine the fair value of certain warrants at year end. The firm did not perform substantive procedures to test the fair value of these warrants beyond obtaining and reading the valuation report prepared by the company's specialist. Further the firm did not perform any procedures with respect to its use of the work of the company's specialist as audit evidence. (AS 1105.A1 - .A10; AS 2501.07)

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

The firm did not identify and evaluate the issuer's omission of disclosures related to the inputs and quantitative information about significant unobservable inputs used to measure the fair value of these warrants that were required by FASB ASC Topic 820 Fair Value Measurements. (AS 2810.30 and .31)

The firm did not perform substantive procedures to test the excess or obsolete inventory reserve and inventory that had been written off during the year beyond obtaining and reading an issuer memorandum. (AS 2301.08; AS 2501.07)

The issuer reported convertible debt agreements that included embedded conversion options; the issuer accounted for these options as derivative liabilities. The firm's approach for substantively testing the fair value of the derivative liabilities was to test the issuer's process. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate whether the issuer's accounting for the conversion options embedded in the convertible debt agreements as derivative liabilities was in conformity with FASB ASC Topic 815 Derivative and Hedging Activities. (AS 2301.08)

The issuer reported convertible debt agreements that included embedded conversion options; the issuer accounted for these options as derivative liabilities. The firm's approach for substantively testing the fair value of the derivative liabilities was to test the issuer's process. The following deficiencies were identified: · The firm did not evaluate the reliability of certain data the issuer used to determine the fair value of the derivative liabilities. (AS 1105.04 and .06)

The issuer reported convertible debt agreements that included embedded conversion options; the issuer accounted for these options as derivative liabilities. The firm's approach for substantively testing the fair value of the derivative liabilities was to test the issuer's process. The following deficiencies were identified: · The firm did not perform sufficient substantive procedures to evaluate whether the method used by the issuer to develop the fair value of the derivative liabilities was in conformity with the requirements of GAAP and appropriate for the nature of the account including whether the data was appropriately used and significant assumptions were appropriately applied under GAAP because the firm did not test the formulas embedded in the issuer's schedules to determine whether they produced substantially the same result as the model the issuer purportedly used. (AS 2501.10)

The issuer reported convertible debt agreements that included embedded conversion options; the issuer accounted for these options as derivative liabilities. The firm's approach for substantively testing the fair value of the derivative liabilities was to test the issuer's process. The following deficiencies were identified: · The firm did not identify and evaluate the issuer's omission of disclosures related to the inputs and quantitative information about the significant unobservable inputs used to measure the fair value of the derivative liabilities that were required by FASB ASC Topic 820 Fair Value Measurement. (AS 2810.30 and .31)

To test certain expenses the firm selected a sample of transactions. The sample size the firm used in this substantive procedure was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population. (AS 2315.16 .19 .23 and .23A)

The firm did not perform substantive procedures to test payroll expense beyond comparing it to issuer-provided payroll reports prepared by an external party and tax filings. (AS 2301.08)

The firm did not perform any substantive procedures to test liabilities related to revenue. (AS 2301.08) Unrelated to our review the issuer reevaluated its accounting for the allowance for doubtful accounts certain receivables related to revenue and liabilities related to revenue and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements.

During the year the issuer acquired certain businesses and engaged specialists to determine the fair value of certain assets and contingent consideration at the acquisition date. The following deficiencies were identified: · The firm did not perform substantive procedures to test the fair value of these assets and the contingent consideration beyond obtaining and reading the company's specialists' reports. Further the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.07)

During the year the issuer acquired certain businesses and engaged specialists to determine the fair value of certain assets and contingent consideration at the acquisition date. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the existence of the other assets acquired and the completeness of the liabilities assumed. (AS 2301.08)

During the year the issuer acquired certain businesses and engaged specialists to determine the fair value of certain assets and contingent consideration at the acquisition date. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the fair value of the other assets acquired and the liabilities assumed. (AS 2501.07)

The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented (2) objectives of the procedures were achieved and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05)

During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not identify and evaluate the issuer's omission of disclosures related to this business combination required by FASB ASC Topic 350 FASB ASC Topic 805 Business Combinations and FASB ASC Topic 820. (AS 2810.30 and .31)

The firm did not perform any procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08)

The firm performed procedures to observe inventory on dates other than year end. The firm did not apply appropriate tests of intervening transactions in inventory between the count dates and year end. (AS 2510.12)

The firm performed procedures to observe inventory on dates other than year end. The firm did not perform any procedures to test costs in inventory including whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08)

The issuer determined a reserve for inventory was not necessary. The firm did not perform any procedures to test the issuer's determination. (AS 2501.07)

The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)

The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented (2) objectives of the procedures were achieved and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05)

The firm did not perform any procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08)

The firm did not perform procedures to test a related liability account beyond obtaining a schedule of activity for the account for the year. (AS 2301.08)

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

The firm did not perform any procedures to test revenue. (AS 2301.08)

The firm did not perform procedures to evaluate whether the issuer should have disclosed disaggregated revenue in accordance with FASB ASC Topic 606. (AS 2301.08)

To test accounts receivable the firm sent a sample of positive confirmation requests by electronic mail and received responses by electronic mail certain of which were returned with exceptions. The following deficiencies were identified: · The sample size the firm used to test accounts receivable was too small to provide sufficient appropriate audit evidence because the firm did not take into account tolerable misstatement for the population. (AS 2315.16 .23 and .23A)

To test accounts receivable the firm sent a sample of positive confirmation requests by electronic mail and received responses by electronic mail certain of which were returned with exceptions. The following deficiencies were identified: · The firm did not consider performing procedures to address the risks associated with the electronic responses such as verifying the source and contents of the confirmation responses. (AS 2310.29)

To test accounts receivable the firm sent a sample of positive confirmation requests by electronic mail and received responses by electronic mail certain of which were returned with exceptions. The following deficiencies were identified: · For the confirmations returned with exceptions the firm did not perform any procedures to evaluate the nature of those exceptions. (AS 2310.33)

The firm did not perform procedures to test the allowance for doubtful accounts beyond obtaining the activity in the account for the year. (AS 2501.07)

During the year the issuer acquired certain businesses. The following deficiencies were identified: · The firm did not perform procedures to test the fair value of the intangible assets beyond obtaining and reading the purchase price allocation for one of the acquisitions. (AS 2501.07)

During the year the issuer acquired certain businesses. The following deficiencies were identified: · The firm did not perform any procedures to test the existence completeness and fair value of the tangible assets acquired at the acquisition dates for these acquisitions. (AS 2301.08; AS 2501.07)

During the year the issuer acquired certain businesses. The following deficiencies were identified: · The firm did not perform any procedures to test the purchase consideration for these acquisitions including contingent consideration. (AS 2301.08; AS 2501.07)

During the year the issuer acquired certain businesses. The following deficiencies were identified: · The firm did not identify and evaluate the issuer's omission of disclosures related to these business combinations required by FASB ASC Topic 805 and FASB ASC Topic 820. (AS 2810.30 and .31)

The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)

The firm did not perform procedures to test goodwill and intangible assets beyond obtaining certain issuer-prepared schedules. (AS 2301.08)

The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented (2) objectives of the procedures were achieved and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05)

The firm did not perform procedures to test revenues beyond obtaining certain issuer-produced reports and reports from external sources. (AS 2301.08)