- Inspection year
- 2019
- Report date
- 06-Jul-2021
- PCAOB release
- 104-2021-131a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 18
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (18)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A13 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer disclosed in its financial statements that it recognized revenue under FASB ASC Topic 606 Revenue from Contracts with Customers. The firm did not evaluate the appropriateness of the issuer's recognition of revenue under FASB ASC Topic 606. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 2 | Revenue | The firm did not test or in the alternative test any controls over the accuracy and completeness of issuer-prepared data used in its substantive testing of revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 3 | Revenue | The firm used certain price and quantity information from outside sources in its substantive testing of revenue but did not perform any procedures to evaluate the relevance and reliability of such information. (AS 1105.04 and .06; AS 2502.40) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2502.40 | |
| 4 | Revenue | The firm did not evaluate whether the issuer's financial statements included sufficient disclosures of the risks and uncertainties related to its revenue and related activities in accordance with FASB ASC Topic 275 Risks and Uncertainties and other relevant standards. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 5 | Revenue | The firm did not perform any procedures to determine whether any of the revenue and related activities were with related parties. (AS 2410.10) Financial statement audit only | AS 2410.10 | |
| 6 | Certain Assets | The firm did not perform any procedures to evaluate the relevance and reliability of evidence it used to test the issuer's ownership rights to certain assets at year end. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 7 | Certain Assets | The firm did not evaluate the appropriateness of the issuer's presentation of these assets at year end (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 8 | Certain Assets | The firm did not test the disposal of certain assets including the loss recorded on disposition. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 9 | Certain Assets | During the year the issuer purchased other certain assets from and then sold some of those assets at a loss back to a counterparty. The following deficiencies were identified: · The firm did not test payments for the purchase of the assets from the counterparty. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 10 | Certain Assets | During the year the issuer purchased other certain assets from and then sold some of those assets at a loss back to a counterparty. The following deficiencies were identified: · The firm did not evaluate whether a payment made by the counterparty to another entity on behalf of the issuer was part of the proceeds from the issuer's sale of those assets to the counterparty. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 11 | Certain Assets | During the year the issuer purchased other certain assets from and then sold some of those assets at a loss back to a counterparty. The following deficiencies were identified: · The firm did not evaluate the collectability of the outstanding receivable recorded at year end for the sale of the assets to the counterparty. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 12 | Certain Assets | During the year the issuer purchased other certain assets from and then sold some of those assets at a loss back to a counterparty. The following deficiencies were identified: · The firm did not evaluate the relevance and reliability of certain data it used to assess the reasonableness of certain assumptions the issuer used in the valuation of the assets. (AS 1105.04 and .06; AS 2501.11) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2501.11 | |
| 13 | Certain Assets | During the year the issuer purchased other certain assets from and then sold some of those assets at a loss back to a counterparty. The following deficiencies were identified: · The firm did not perform sufficient procedures to test the impairment recorded on the assets because it limited its procedures to inquiry regarding how the loss was calculated. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The issuer had certain agreements outstanding with counterparties as of year end. The following deficiencies were identified: · The firm did not evaluate whether the agreements were appropriately accounted for and disclosed in accordance with GAAP. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Certain Assets | The issuer had certain agreements outstanding with counterparties as of year end. The following deficiencies were identified: · The firm did not obtain an understanding of and test the inputs methods and assumptions used to estimate the fair value of the recorded assets related to these transactions. (AS 2502.09 .26 and .28) Financial statement audit only | AS 2502.9; AS 2502.26; AS 2502.28 | |
| 3 | Certain Assets | The issuer had certain agreements outstanding with counterparties as of year end. The following deficiencies were identified: · The firm did not test the valuation of the underlying collateral. (AS 2502.15) Financial statement audit only | AS 2502.15 | |
| 4 | Certain Assets | The issuer had certain agreements outstanding with counterparties as of year end. The following deficiencies were identified: · The firm did not evaluate whether the transactions should be identified as transactions with related parties because the counterparties were controlled by an individual who was listed as an officer of the issuer in a public filing and certain of the collateral was held by an entity the issuer disclosed as an entity with control. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 5 | Certain Transactions | The firm did not test whether certain transactions were recorded on the proper dates and at the correct amounts. (AS 2301.08) Financial statement audit only | AS 2301.8 |