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Galaz, Yamazaki, Ruiz, Urquiza, S.C
Mexico · Deloitte Touche Tohmatsu Limited · Triennially Inspected
- Inspection year
- 2019
- Report date
- 11-Mar-2021
- PCAOB release
- 104-2021-079
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Accrued Liabilities | The issuer used various models and assumptions to estimate the useful life of certain long-lived assets which was then used (1) in the determination of periodic depreciation and amortization of those assets and (2) to accrue a related liability. The costs related to the accrued liability were capitalized as part of the carrying value of the related long-lived assets and depreciated over their estimated useful life. The following deficiencies were identified: · The firm did not identify and assess the risks of material misstatement related to the valuation of these long-lived assets and related accrued liability. (AS 2110.59) Both financial statement and ICFR audits | AS 2110.59 | |
| 2 | Accrued Liabilities | The issuer used various models and assumptions to estimate the useful life of certain long-lived assets which was then used (1) in the determination of periodic depreciation and amortization of those assets and (2) to accrue a related liability. The costs related to the accrued liability were capitalized as part of the carrying value of the related long-lived assets and depreciated over their estimated useful life. The following deficiencies were identified: · Because of the deficiency in the firm's risk assessment procedures as discussed above the firm did not identify and test any controls over the valuation of these long-lived assets and related accrued liability (AS 2201.39). Both financial statement and ICFR audits | AS 2201.8; AS 2201.39 | |
| 3 | Accrued Liabilities | The issuer used various models and assumptions to estimate the useful life of certain long-lived assets which was then used (1) in the determination of periodic depreciation and amortization of those assets and (2) to accrue a related liability. The costs related to the accrued liability were capitalized as part of the carrying value of the related long-lived assets and depreciated over their estimated useful life. The following deficiencies were identified: · In addition the firm did not perform procedures to test the reasonableness of an assumption used to estimate the value of the long-lived assets and related accrued liability and certain related disclosures in the issuer's financial statements. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The subsidiary capitalized certain costs in the production of inventory. The firm selected for testing a control that consisted of management's review of a monthly cost analysis which compared actual to budgeted costs. The firm did not identify and test any controls over the accuracy and completeness of the monthly budgeted costs report used in the operation of this control. (AS 2201.39) ICFR audit only | AS 2201.39 |