- Inspection year
- 2019
- Report date
- 12-May-2021
- PCAOB release
- 104-2021-102
- Audits reviewed
- 4
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 25%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (2)
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 | Revenue | The firm's approach for testing revenue included selecting a sample of transactions from certain months during the year. In determining the sample size the firm did not consider the relevant factors including the firm's established tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population of sales transactions. As a result the sample size the firm used in its test of details was too small to achieve the planned audit objective. Further the firm's selection of transactions for testing was confined to transactions from certain months of the year not the entire population of net sales. Therefore the results of these audit procedures could not be projected to the entire population. (AS 2315.16 .23 .23A and .24) Financial statement audit only | AS 2315.16; AS 2315.23; AS 2315.24; AS 2315.23A | |
| 2 | Revenue | The firm's approach for testing revenue included selecting a sample of transactions from certain months during the year. In determining the sample size the firm did not consider the relevant factors including the firm's established tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population of sales transactions. As a result the sample size the firm used in its test of details was too small to achieve the planned audit objective. Further the firm's selection of transactions for testing was confined to transactions from certain months of the year not the entire population of net sales. In addition the firm did not evaluate whether all revenue recognition criteria had been met for transactions selected for testing. (AS 2301.08) Financial statement audit only | AS 2301.8 |