- Inspection year
- 2019
- Report date
- 28-Jun-2021
- PCAOB release
- 104-2021-127
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- —
- 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 A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | To determine whether the intangible asset was impaired the issuer compared the asset's estimated undiscounted cash flows to its carrying value. The estimated cash flows were based on revenue projections that the issuer developed by weighting different categories of customers and estimating the sales price and number of units to be sold for each category. The firm compared the issuer's overall revenue projections and gross margin growth rates to those of several of the issuer's competitors. The firm did not evaluate the reasonableness of assumptions related to the weighting of customer categories and the number of units to be sold. Further the firm did not evaluate the reasonableness of the overall revenue projections and gross margin growth rates considering the decline in those rates for certain of the issuer's competitors. (AS 2501.09 .10 and .11; AS 2810.03) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.11; AS 2810.3 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | The firm selected for testing a control that consisted of management's review of the impairment analysis for certain intangible 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 |