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PricewaterhouseCoopers LLP
United States · PricewaterhouseCoopers International Limited · Annually Inspected
- Inspection year
- 2020
- Report date
- 30-Sep-2021
- PCAOB release
- 104-2021-154
- Audits reviewed
- 52
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 2%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The issuer used an information-technology (IT) application to generate reports from various systems that processed and recorded revenue and inventory transactions. The following deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of changes to the configuration of these reports. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the changes were appropriate. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Inventory | The issuer used an information-technology (IT) application to generate reports from various systems that processed and recorded revenue and inventory transactions. The following deficiencies were identified: · The firm did not identify and test any controls that addressed whether all of the reports with changes were subject to this review. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 3 | Inventory | The issuer used an information-technology (IT) application to generate reports from various systems that processed and recorded revenue and inventory transactions. The following deficiencies were identified: · The firm selected for testing various IT-dependent manual controls over this revenue and inventory that used these reports. As a result of the deficiencies discussed above the firm's testing of these manual controls was not sufficient. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 4 | Inventory | The sample sizes the firm used in certain of its substantive procedures to test this revenue were 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 | |
| 5 | Revenue | The firm selected for testing a control that consisted of the issuer's review of the prices and quantities that the issuer used to record revenue. The firm did not identify and test any controls over the completeness of the system-generated report that was used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 |