- Inspection year
- 2019
- Report date
- 24-Feb-2021
- PCAOB release
- 104-2021-072
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (2)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue based on the relationship between actual costs incurred and total estimated contract costs which were accumulated within an issuer-prepared schedule (the 'Schedule'). The firm did not perform sufficient procedures to test or in the alternative test any controls over the accuracy and completeness of the actual costs incurred included in the Schedule because its procedures were limited to comparing the results of its testing of inventory and payroll to the Schedule. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 2 | Revenue | In addition the firm did not perform any substantive procedures to evaluate the reasonableness of total estimated contract costs included in the Schedule. (AS 2501.07) Financial statement audit only | AS 2501.7 |