- Inspection year
- 2019
- Report date
- 16-Aug-2021
- PCAOB release
- 104-2021-161a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 15
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (15)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not (1) obtain an understanding of the likely sources of potential misstatement of revenue (AS 2201.34) Both financial statement and ICFR audits | AS 2201.34 | |
| 2 | Revenue | The firm did not (2) identify and test process level controls over the issuer's revenue (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 3 | Revenue | The firm did not (3) test the operating effectiveness of the issuer's information technology general controls ('ITGCs') that it had identified and tested for design effectiveness. (AS 2201.44) Both financial statement and ICFR audits | AS 2201.44 | |
| 4 | Revenue | The sample size the firm used in a substantive procedure over one category of revenue was too small to achieve the planned objective for the test because it used the methodology for determining the sample size for a test of controls and did not consider factors relevant to determining the sample size for its substantive testing. (AS 2315.16 .23 and .23A) Both financial statement and ICFR audits | AS 2315.16; AS 2315.23; AS 2315.23A | |
| 5 | Revenue | In addition the sample size the firm used in a substantive procedure to test another category of revenue was too small to provide sufficient appropriate audit evidence because the procedure was 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 | |
| 6 | Long-Lived Assets | The firm selected for testing certain controls over various reviews of long-lived assets. 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 | |
| 7 | Long-Lived Assets | The firm selected for testing certain controls over various reviews of long-lived assets. The firm did not identify and test any controls over the accuracy and completeness of data and reports that were used in the performance of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 8 | Long-Lived Assets | The firm did not perform sufficient substantive procedures to test transfers of the long-lived assets between asset categories because it tested transfers for one quarter which did not constitute audit sampling and therefore the testing results could not be projected to the population of transfers during the year. (AS 2315.24) Both financial statement and ICFR audits | AS 2315.24 | |
| 9 | Long-Lived Assets | The firm did not test or test controls over the accuracy and completeness of documents used in testing the transfer of long-lived assets. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 10 | Long-Lived Assets | The firm did not test or test the controls over the accuracy and completeness of data and reports used in its testing of long-lived assets for impairment. (AS 1105.10; AS 2501.11) Both financial statement and ICFR audits | AS 1105.10; AS 2501.11 | |
| 11 | Long-Lived Assets | The firm did not test the fair value of the purchase price allocations to one asset category. (AS 2502.15) Both financial statement and ICFR audits | AS 2502.15 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected for testing controls over reviews of revenue reconciliations. 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) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 2 | Revenue | The firm selected for testing controls over reviews of revenue reconciliations. The firm did not identify and test any controls over the accuracy and completeness of data and schedules that were used in the performance of these controls. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 3 | Long-Lived Assets | The firm selected for testing controls over the review of the issuer's roll-forward for long-lived assets. 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) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 4 | Long-Lived Assets | The firm selected for testing controls over the review of the issuer's roll-forward for long-lived assets. The firm did not identify and test any controls over the accuracy and completeness of data and schedules that were used in the performance these controls. (AS 2201.39) ICFR audit only | AS 2201.39 |