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PricewaterhouseCoopers
Ireland · PricewaterhouseCoopers International Limited · Triennially Inspected
- Inspection year
- 2019
- Report date
- 16-Jun-2021
- PCAOB release
- 104-2021-117
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 13
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (13)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The component reported revenue from multiple revenue types and for purposes of the audit the firm grouped revenue into three categories. The following deficiencies were identified: · For one category of revenue that was generally earned upon product shipment the firm did not perform any procedures to evaluate differences identified for certain revenue transactions selected for testing between the shipping dates and dates in which revenue was recognized to determine whether revenue was recognized in the proper period. (AS 2301.08; AS 2810.03) Both financial statement and ICFR audits | AS 2301.8; AS 2810.3 | |
| 2 | Revenue | The component reported revenue from multiple revenue types and for purposes of the audit the firm grouped revenue into three categories. The following deficiencies were identified: · For another category of revenue the firm did not perform sufficient substantive procedures to test a portion of revenue because it did not select its sample in a manner that was representative of the entire population and as such the results of testing performed could not be projected to the entire population. (AS 2315.24) Both financial statement and ICFR audits | AS 2315.24 | |
| 3 | Revenue | The component reported revenue from multiple revenue types and for purposes of the audit the firm grouped revenue into three categories. The following deficiencies were identified: · In addition for certain sales transactions selected for testing related to sales arrangements in which the firm concluded had a single performance obligation the firm did not perform any procedures to evaluate the appropriateness of the component's recognition of revenue in different periods for the respective arrangements. (AS 2301.08; AS 2810.03) Both financial statement and ICFR audits | AS 2301.8; AS 2810.3 | |
| 4 | Revenue | The component reported revenue from multiple revenue types and for purposes of the audit the firm grouped revenue into three categories. The following deficiencies were identified: · The firm did not evaluate the effect of the (1) differences identified between the shipping dates and dates in which revenue was recognized and (2) inconsistencies in the component's revenue recognition practices for sales arrangements with a single performance obligation both as described above on the effectiveness of the component's ICFR or report such matters to the principal auditor for its evaluation. (AS 2201.B8) Both financial statement and ICFR audits | AS 2201.B8 | |
| 5 | Inventory | The component held inventory at multiple locations. For one location the firm selected for testing two controls over inventory that consisted of periodic cycle counts and management's review and approval of adjustments to the perpetual inventory records resulting from those counts. The firm did not identify and test any controls over the accuracy and completeness of the data derived from the component's inventory system that was used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 6 | Inventory | The firm's substantive procedures to test inventory at this location utilized certain data from the component's inventory system. The firm did not test or in the alternative identify and test controls over the accuracy and completeness of these data as discussed above. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Goodwill | The firm selected for testing a control consisting of a review of forecasts used in the issuer's impairment analysis including an evaluation of the revenue growth and earnings assumptions underlying these forecasts. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Goodwill | In addition the firm did not identify and test any controls over the accuracy and completeness of a reporting package used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 3 | Goodwill | The firm's approach for testing the fair value measurement of goodwill was to review and test management's process. The following deficiencies were identified: · The firm did not perform any procedures to test the accuracy of a report that was used to support certain assumptions. (AS 2502.26 .28 and .39) Both financial statement and ICFR audits | AS 2502.26; AS 2502.28; AS 2502.39 | |
| 4 | Goodwill | The firm's approach for testing the fair value measurement of goodwill was to review and test management's process. The following deficiencies were identified: · The firm did not evaluate the reasonableness of the earnings assumptions beyond inquiring of management as to certain cost saving initiatives underlying those assumptions. (AS 2502.26 and .28) Both financial statement and ICFR audits | AS 2502.26; AS 2502.28 | |
| 5 | Goodwill | The firm's approach for testing the fair value measurement of goodwill was to review and test management's process. The following deficiencies were identified: · The firm did not evaluate historical differences between earnings declines experienced by the issuer and those included in an industry market report that was used to support certain assumptions. (AS 2502.26 .28 .31 and .36) Both financial statement and ICFR audits | AS 2502.26; AS 2502.28; AS 2502.31; AS 2502.36 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected for testing a control that consisted of a review of all changes made to customer data including sales prices within the subsidiary's system. The firm did not identify and test any controls over the completeness of customer data included in a report used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Revenue | The sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A |