- Inspection year
- 2019
- Report date
- 21-Sep-2021
- PCAOB release
- 104-2021-175a
- 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
- 8
- 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 | Acquisition | The firm did not identify and appropriately address a departure from GAAP related to the omission of disclosures required by FASB ASC Topic 235 Notes to Financial Statements and FASB ASC Topic 606 Revenue from Contracts with Customers including the issuer's accounting policy for recording revenue in accordance with FASB ASC Topic 606; qualitative and quantitative information about its contracts with customers the significant judgments and changes in judgments made in applying the guidance in FASB ASC Topic 606 to those contracts; and any assets recognized from the costs to obtain or fulfill a contract with a customer. (AS 2810.30 and .31) In connection with our review the issuer reevaluated its disclosures related to revenue and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements. Financial statement audit only | AS 2810.30; AS 2810.31 | Incorrect opinion |
| 2 | Revenue | The issuer recorded certain acquired intangible assets inventory and fixed assets. The firm did not test certain assumptions used by external specialists to estimate the fair values of the acquired intangible assets and inventory. (AS 2502.26 and .28) Financial statement audit only | AS 2301.8; AS 2502.26; AS 2502.28 | Incorrect opinion |
| 3 | Acquisition | The issuer recorded certain acquired intangible assets inventory and fixed assets. The firm did not test issuer-provided data used by the external specialist to estimate the fair values of the acquired intangible assets. (AS 1210.12) Financial statement audit only | AS 1210.12 | Incorrect opinion |
| 4 | Acquisition | The issuer recorded certain acquired intangible assets inventory and fixed assets. The firm did not test the fair value of the acquired fixed assets. (AS 2502.15) Financial statement audit only | AS 2502.15 | Incorrect opinion |
| 5 | Acquisition | The firm did not evaluate whether the intangible assets were appropriately recorded as indefinite-lived including not considering contradictory evidence that indicated that certain of the intangible assets had finite lives. (AS 2810.03 and .30) Financial statement audit only | AS 2810.3; AS 2810.30 | Incorrect opinion |