- Inspection year
- 2019
- Report date
- 28-Jun-2021
- PCAOB release
- 104-2021-130
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (8)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The firm did not identify and evaluate the significance to the financial statements of the issuer's omission of certain required disclosures under GAAP. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Certain Assets | The issuer used an external specialist to determine the fair values of certain assets. With respect to one asset the firm did not sufficiently evaluate the forecasted increasing sales provided to the specialist because it did not evaluate how management's strategies could overcome continuous annual declines in revenues. (AS 1210.12; AS 2810.03) Financial statement audit only | AS 1210.12; AS 2810.3 | |
| 3 | Certain Assets | With respect to other assets the firm selected a sample for testing. For certain items selected the firm did not obtain evidence to support certain information that was used by the specialist in determining their fair values. (AS 1210.12) Financial statement audit only | AS 1210.12 | |
| 4 | Certain Assets | With respect to other assets the firm selected a sample for testing. The firm did not consider whether the lack of supporting documentation for certain assets represented a misstatement and if so the potential effect on the evaluation of its sample. (AS 2315.25) Financial statement audit only | AS 2315.25 | |
| 5 | Revenue | For one category of revenue the firm did not evaluate whether all of the relevant revenue recognition criteria had been met for the sales transactions it selected for testing. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Inventory | For inventory at one subsidiary the firm did not make or observe any physical counts of the inventory. (AS 2510.12 and .13) Financial statement audit only | AS 2510.12; AS 2510.13 | |
| 7 | Inventory | For inventory at another subsidiary the firm performed inventory observations subsequent to year end. The firm did not test or in the alternative test any controls over the accuracy and completeness of the system-generated reports it used to test intervening transactions between the dates of its inventory observations and year end. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 8 | Inventory | For inventory at a third subsidiary the firm performed inventory observations subsequent to year end. The firm did not test any intervening transactions between the date of its inventory observations and year end. (AS 2510.12 and .13) Financial statement audit only | AS 2510.12; AS 2510.13 |