- Inspection year
- 2019
- Report date
- 12-May-2021
- PCAOB release
- 104-2021-101a
- Audits reviewed
- 5
- Audits w/ Part I.A deficiencies
- 4
- Part I.A deficiency rate
- 80%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a business. The firm did not identify or appropriately address a departure from GAAP related to the issuer's omission of required disclosures under FASB ASC Topic 805 Business Combinations regarding the amounts of revenue and earnings of the acquired company since the acquisition date that were included in the income statement. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Revenue | The firm did not perform any substantive procedures to test or in the alternative test any controls over the accuracy and completeness of transactional data that was used by the issuer to record revenue and used by the firm in its test of details over a majority of the issuer's revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm did not identify and test any controls over the valuation of certain assets. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 2 | Certain Assets | The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control related to certain assets that was being performed quarterly at all locations. The firm did not test whether (1) the control operated consistently at all locations; (2) all such assets at each location were subject to the control; (3) variances that exceeded the issuer's threshold were appropriately investigated and resolved; and (4) adjustments that the issuer made as a result of the control were appropriately approved and recorded. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 3 | Certain Assets | The issuer held certain assets at multiple locations. The following deficiencies were identified: • The firm selected for testing a control that included management's review of the reserve analysis for certain assets. 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) ICFR audit only | AS 2201.42; AS 2201.44 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | During the year the issuer acquired an intangible asset as part of a business combination. The issuer classified the intangible asset as finite-lived and began amortizing the intangible asset over its estimated useful life. The firm did not identify or appropriately address a departure from GAAP related to issuer's classification of the intangible asset as finite-lived and recording of amortization which was not in conformity with FASB ASC Topic 350 Intangibles—Goodwill and Other for this type of intangible asset. (AS 2810.30) Financial statement audit only | AS 2810.30 |
Issuer D1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Equity-Related Transactions | During the year the issuer acquired a business in exchange for shares of its common stock. Later that year the issuer and seller entered into an agreement to terminate the business combination. The issuer did not assign any value to its common stock returned under the termination agreement. The firm did not identify or appropriately address a departure from GAAP related to the issuer's common stock returned under the termination agreement which should have been recorded as a reduction to stockholders' equity at the cost of the returned shares in conformity with FASB ASC Subtopic 505-30 Treasury Stock. (AS 2810.30) Financial statement audit only | AS 2810.30 |