- Inspection year
- 2019
- Report date
- 12-May-2021
- PCAOB release
- 104-2021-098
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 1
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (1)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Equity-Related Transactions | The issuer issued shares of its common stock in exchange for consulting services to be performed over various periods ranging from six to 36 months. The issuer's financial statements reflected an expense for the fair value of the shares issued only to the extent the service period for the consulting services had elapsed with the exception of one terminated agreement for which the entire fair value of the shares issued was expensed upon termination. The firm did not evaluate whether there was a performance condition associated with each of the arrangements in order to determine whether the accounting was in conformity with FASB ASC Subtopic 505-50 Equity-Based Payments to Non-Employees. (AS 2810.30) Unrelated and prior to our review the issuer reevaluated its accounting for these arrangements and the related stock issuance and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements. Financial statement audit only | AS 2810.30 |