- Inspection year
- 2019
- Report date
- 28-Jun-2021
- PCAOB release
- 104-2021-128
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- 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 A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer used a service organization to invoice customers when services were rendered. The following deficiencies were identified: · The firm selected for testing a complementary user control over the review of sales orders. The firm did not test certain attributes of this control intended to validate both the accuracy of rates charged to customers and the timing of services rendered. In addition the firm did not identify and test any other complementary user controls designed to ensure that the services were rendered as scheduled in the service organization's system. (AS 2201.B22) ICFR audit only | AS 2201.B22 | |
| 2 | Revenue | The issuer used a service organization to invoice customers when services were rendered. The following deficiencies were identified: · The firm selected for testing a complementary user control over the review of a comparison of a system-generated discrepancy report to a manually prepared service log. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.B22) ICFR audit only | AS 2201.B22 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Doubtful Accounts | The issuer estimated its allowance for doubtful accounts based on reserve percentages used by other companies in the issuer's industry ('peer companies'). The firm's approach for substantively testing the allowance for doubtful accounts was to review and test management's process. The firm did not sufficiently evaluate the reasonableness of the allowance because the firm did not perform procedures to determine whether the peer companies' reserve percentages were relevant to determining the issuer's reserve percentage. (AS 2501.09 .10 and .11) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.11 |