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Deloitte & Touche
South Africa · Deloitte Touche Tohmatsu Limited · Triennially Inspected
- Inspection year
- 2019
- Report date
- 08-Apr-2021
- PCAOB release
- 104-2021-091
- 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
- 2
- 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 | Revenue | The firm selected for testing a control that consisted of the component's review of topside journal entries related to revenue recognition. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Revenue | The firm used certain historical data of the component to evaluate the reasonableness of certain assumptions the component used to recognize revenue for a material contract. The firm did not perform any procedures to test or in the alternative identify and test any controls over the accuracy and completeness of the historical data used in its evaluation. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 3 | Revenue | The firm's substantive procedures to test an assumption used to recognize revenue included substantive analytical procedures. In performing these procedures the firm did not develop expectations at a level of precision that provided the desired level of assurance that differences that could be potential material misstatements individually or in the aggregate would be identified for investigation. (AS 2305.17) Both financial statement and ICFR audits | AS 2305.17 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected for testing a control that consisted of the issuer's monthly comparison of revenue by customer to revenue recorded in the prior month and the investigation of variances over an established threshold. The firm did not evaluate the specific review procedures that the control owner performed to investigate identified variances and determine whether items identified for follow-up had been appropriately resolved. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 |