- Inspection year
- 2019
- Report date
- 06-Jul-2021
- PCAOB release
- 104-2021-141
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm selected for testing a control that consisted of the issuer's review of risk grades assigned to commercial graded loans. The loan grades were an important factor in estimating the ALL. The sample size used by the firm to test the control was too small to provide sufficient appropriate audit evidence to support its conclusion that the control was operating effectively. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 2 | Allowance for Credit/Loan Losses | The firm selected for testing a control that consisted of the issuer's review of problem loans. 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 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 3 | Allowance for Credit/Loan Losses | The sample size the firm used in its substantive procedures to test the reasonableness of assigned loan grades 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 deficiencies 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 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm selected for testing a control that consisted of the external review of loan grades. The sample size used by the firm to test the control was too small to provide sufficient appropriate audit evidence to support its conclusion that the control was operating effectively. As a result the sample size the firm used in its substantive procedures to test the reasonableness of assigned loan grades 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 deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 and .23 and .23A) Financial statement audit only | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A |