- Inspection year
- 2019
- Report date
- 16-Aug-2021
- PCAOB release
- 104-2021-163a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer used information technology ('IT') applications to initiate process and record revenue. The firm identified multiple control deficiencies related to controls over logical access and program changes. The firm concluded that these deficiencies represented a significant deficiency after identifying and testing several compensating controls. The firm did not sufficiently evaluate the severity of the control deficiencies because it did not determine whether the compensating controls addressed the same objective and assertions as the ineffective controls. (AS 2201.68) ICFR audit only | AS 2201.68 | |
| 2 | Revenue | The firm selected for testing an automated control over revenue that was designed to record revenue once the issuer processed an invoice in its system. The firm did not sufficiently test this automated control because it only tested one instance which was not appropriate due to the control deficiencies described above. (AS 2201.42 .44 and .46) ICFR audit only | AS 2201.42; AS 2201.44; AS 2201.46 | |
| 3 | Revenue | The firm selected for testing certain controls that included management's review of sales contracts and comparisons of expected to actual sales. 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 | Inventory | The firm selected for testing a control that consisted of management's review of the issuer's financial close checklist which included revenue and inventory. 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 |