- Inspection year
- 2019
- Report date
- 12-May-2021
- PCAOB release
- 104-2021-099a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (6)
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 | Significant Accounts | The issuer used an information technology ('IT') application to initiate process and record transactions related to certain significant accounts. The firm tested IT general controls ('ITGCs') over and application controls within this IT application. The firm identified multiple control deficiencies related to controls over logical access and program changes. The firm concluded that none of the deficiencies rose to the level of a significant deficiency or material weakness individually or in the aggregate. In reaching this conclusion the firm did not sufficiently evaluate the severity of the control deficiencies because it did not evaluate the effect of the deficiencies on the related IT-dependent manual controls and application controls. (AS 2201.62 and .65) ICFR audit only | AS 2201.62; AS 2201.65 | |
| 2 | Significant Accounts | The firm did not identify and test controls over the accuracy and completeness of information used by the firm to test the ITGCs and application controls. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 3 | Significant Accounts | The firm selected for testing controls over the review of aspects of these significant accounts. The firm did not evaluate the review procedures that the control owners 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) In addition the firm did not test controls over the accuracy and completeness of information used in these controls. (AS 2201.39) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 4 | Significant Accounts | The firm selected for testing controls over the review of aspects of these significant accounts. The firm did not evaluate the review procedures that the control owners 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) In addition the firm did not test controls over the accuracy and completeness of information used in these controls. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 5 | Significant Accounts | The firm used the work of internal audit to test certain controls over the review of these significant accounts through the second or third quarters of the issuer's year end but did not perform any procedures to update the results of that testing from those interim dates to year end. (AS 2201.55) ICFR audit only | AS 2201.55 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The sample size the firm used in a substantive procedure over revenue was too small to achieve the planned objective for the test because it used the methodology for determining the sample size for a test of controls and did not consider factors relevant to determining the sample size for its substantive testing. (AS 2315.16 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.23; AS 2315.23A |