- Inspection year
- 2019
- Report date
- 16-Aug-2021
- PCAOB release
- 104-2021-158
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (6)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm selected for testing controls that consisted of the issuer's review of (1) risk ratings assigned to certain commercial loans (2) loans that were identified as having higher risk characteristics and (3) the reasonableness of the ALL general reserve. 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 | |
| 2 | Allowance for Credit/Loan Losses | The firm selected for testing controls that consisted of the issuer's review of (1) risk ratings assigned to certain commercial loans (2) loans that were identified as having higher risk characteristics and (3) the reasonableness of the ALL general reserve. With respect to the review of risk ratings control the firm did not consider the complexity of the control and the significance of the judgments made by the control owners in determining the sample size used to test this control. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 3 | Allowance for Credit/Loan Losses | The firm did not identify and test any controls over the determination of the risk ratings for the remaining loans that were not subject to the review controls discussed above. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Allowance for Credit/Loan Losses | The sample size the firm used in certain of its substantive procedures to test the ALL 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 | |
| 5 | Business Combinations | The firm selected for testing controls that consisted of the issuer's review of (1) valuation reports and journal entries used to record the business combinations (2) reconciliations of valuation reports to the general ledger and (3) assumptions used to value assets acquired and liabilities assumed. 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 | |
| 6 | Business Combinations | The firm selected for testing controls that consisted of the issuer's review of (1) valuation reports and journal entries used to record the business combinations (2) reconciliations of valuation reports to the general ledger and (3) assumptions used to value assets acquired and liabilities assumed. The firm did not identify and test any controls over the accuracy and completeness of issuer-produced data that the control owners used in the performance of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 |