- Inspection year
- 2019
- Report date
- 21-Sep-2021
- PCAOB release
- 104-2021-181
- 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
- 3
- 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 | Related Party Transactions | The firm did not identify and appropriately address a departure from GAAP related to the financial statement presentation and disclosures associated with the issuer's transactions with related parties. The issuer's financial statements did not disclose the nature of the relationships and a description and dollar amount of related party transactions as required by FASB ASC Topic 850 Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | |
| 2 | Related Party Transactions | The firm did not perform any procedures to test the identified transactions with related parties including the amounts receivable at year end beyond sending confirmation requests to certain related parties. (AS 2410.12) Financial statement audit only | AS 2410.12 | |
| 3 | Related Party Transactions | The firm did not apply alternative procedures to the nonresponses to the confirmation requests. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 4 | Intangible Assets | The firm did not identify and appropriately address departures from GAAP related to the financial statement presentation and disclosures associated with the issuer's intangible assets. The issuer included an inaccurate disclosure in the notes to the financial statements that an impairment loss related to the intangibles had been recorded when in fact the issuer had not recorded an impairment. Further the issuer did not disclose the estimated aggregate amortization expense for each of the five succeeding fiscal years as required by FASB ASC Topic 350 Intangibles — Goodwill and Other and did not reflect the related amortization expense as part of the reconciliation of net income and net cash flow from operating activities in its statement of cash flows as required by FASB ASC Topic 230 Statement of Cash Flows. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 5 | Intangible Assets | Apart from recalculating amortization expense the firm did not perform any procedures to test intangible assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Revenue | For the sales transactions selected for testing the firm did not perform procedures to test whether all of the relevant revenue recognition criteria had been met. (AS 2301.08) Financial statement audit only | AS 2301.8 |