- Inspection year
- 2019
- Report date
- 16-Aug-2021
- PCAOB release
- 104-2021-156
- Audits reviewed
- 4
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (7)
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 | Accrued Liabilities | The firm did not identify and test any controls over accrued liabilities. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 2 | Equity-Related Transactions | The issuer estimated the fair value of stock options and warrants based on certain data and assumptions. The firm did not test the operating effectiveness of controls over the input of data and assumptions into the calculation of the fair value of stock options and stock compensation expense. (AS 2201.44) ICFR audit only | AS 2201.44 | |
| 3 | Equity-Related Transactions | The issuer estimated the fair value of stock options and warrants based on certain data and assumptions. The firm did not test the design and operating effectiveness of controls over the assumptions that were used in the calculation of the fair value of warrants. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 4 | Equity-Related Transactions | The firm did not identify and test any controls over the existence of common stock. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 5 | Equity-Related Transactions | The firm identified a significant deficiency related to the preparation and review of the fair value of the stock options and stock compensation expense. In its evaluation of the deficiency the firm did not evaluate the severity of the deficiency in combination with other deficiencies to determine whether it constituted a material weakness. (AS 2201.62) ICFR audit only | AS 2201.62 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized certain of its revenue from fees that were based on the number of transactions processed each month. The firm did not perform audit procedures to test the accuracy and completeness of this data that it used in its testing of revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 2 | Goodwill and Intangible Assets | The issuer performed its annual goodwill and intangible assets impairment analyses using a qualitative assessment. The firm did not perform substantive procedures to evaluate the reasonableness of certain assumptions used in the qualitative assessment. Further the firm did not evaluate certain adverse events or circumstances included in the qualitative assessment in order to determine the effect on the issuer's assertions in its impairment analysis. (AS 2501.07; AS 2810.03) Financial statement audit only | AS 2501.7; AS 2810.3 |