- Inspection year
- 2019
- Report date
- 25-Mar-2021
- PCAOB release
- 104-2021-086a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (9)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | In its testing of revenue the firm did not evaluate whether the issuer appropriately recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 2 | Revenue | In addition the firm did not identify and appropriately address a departure from GAAP related to the issuer's (i) disclosure that it recognized revenue under FASB ASC Topic 605 Revenue Recognition when in fact it recognized revenue under FASB ASC Topic 606 and (ii) omission of certain disclosures related to FASB ASC Topic 606. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 3 | Certain Assets | The firm did not perform sufficient procedures to test the existence of an asset because its procedures were limited to inspecting supporting documentation dated approximately five months prior to the issuer's year end. (AS 2503.21) Financial statement audit only | AS 2503.21 | |
| 4 | Certain Assets | For other certain assets the firm did not evaluate if the assets were appropriately accounted for in conformity with GAAP and did not identify and appropriately address departures from GAAP related to the issuer's omission of certain required disclosures. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 5 | Certain Assets | In addition the firm did not evaluate the effects of a related party relationship on whether these assets were appropriately accounted for in conformity with GAAP. (AS 2810.30) Financial statement audit only | AS 2810.30 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The firm did not evaluate whether the cost of inventory was determined in accordance with the issuer's stated policy. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Inventory | The firm did not evaluate whether inventory was recorded at the lower of cost or market. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 3 | Inventory | The firm did not evaluate the assumptions used by the issuer to estimate the reserve for obsolescence. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Inventory | The firm did not perform sufficient inventory test count procedures because it did not test (1) inventory transactions between the date of the count and year end and (2) the completeness of the issuer's inventory. (AS 2510.09 and .12) Financial statement audit only | AS 2510.9; AS 2510.12 |