- Inspection year
- 2019
- Report date
- 16-Aug-2021
- PCAOB release
- 104-2021-162a
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 4
- 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 | Revenue | The sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the firm (1) did not consider appropriate factors such as the firm's established tolerable misstatement and the characteristics of the population and (2) included erroneous inputs as to the size of the population identification of a significant risk and the level of assurance to be obtained from other procedures. (AS 2315.16 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.23; AS 2315.23A | |
| 2 | Goodwill and Intangible Assets | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analyses for its goodwill and intangible assets. The following deficiencies were identified: • The firm did not evaluate whether the issuer's impairment analyses were performed in accordance with FASB ASC Topic 350 Intangibles — Goodwill and Other. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 3 | Goodwill and Intangible Assets | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analyses for its goodwill and intangible assets. The following deficiencies were identified: • The firm did not test the completeness and accuracy of data used by the external specialist to determine the enterprise value. (AS 1210.12) Financial statement audit only | AS 1210.12 | |
| 4 | Goodwill and Intangible Assets | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analyses for its goodwill and intangible assets. The following deficiencies were identified: • The firm did not obtain an understanding of the process used by management to determine fair value of goodwill and each of the intangible assets and the resulting impairment. (AS 2502.09) Financial statement audit only | AS 2502.9 | |
| 5 | Goodwill and Intangible Assets | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analyses for its goodwill and intangible assets. The following deficiencies were identified: • The firm did not evaluate the reasonableness of assumptions used in the impairment analyses. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 |