- Inspection year
- 2019
- Report date
- 19-May-2021
- PCAOB release
- 104-2021-104
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (3)
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 | Deferred Revenue | The firm's substantive procedures to test two revenue categories and deferred revenue related to one of these categories included analytical procedures in which the firm compared the revenue and deferred revenue balances to the amounts in the prior year. The firm did not perform procedures to obtain evidence that the prior-year balances would be predictive of current-year balances. (AS 2305.13 and .14) Financial statement audit only | AS 2305.13; AS 2305.14 | |
| 2 | Deferred Revenue | The firm identified a fraud risk related to one of these categories of revenue. The firm did not perform tests of details beyond the procedures discussed below over this revenue category in response to the fraud risk. (AS 2301.13) Financial statement audit only | AS 2301.13 | |
| 3 | Deferred Revenue | The firm performed procedures to test deferred revenue by selecting a sample of monthly activity from a summary schedule. These procedures did not provide sufficient appropriate audit evidence of the completeness of deferred revenue because the firm only selected activity from recorded deferred revenue. Further the firm did not test the transactions underlying the activity in the months selected for testing. (AS 2315.17 and .25) Financial statement audit only | AS 2315.17; AS 2315.25 |