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Castillo Miranda y Compañía, S.C.
Mexico · BDO International Limited · Triennially Inspected
- Inspection year
- 2019
- Report date
- 30-Sep-2021
- PCAOB release
- 104-2021-185
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 15
- Part I.B deficiencies
- 3
- 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 A15 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Depreciation & Amortization | The firm tested the design and operating effectiveness of information technology general controls ('ITGCs') over the issuer's general ledger and other systems ('applications') in order to rely on the accuracy and completeness of data produced by the applications that was used in performing the firm's substantive testing of long-lived assets depreciation and amortization and revenue. The firm selected for testing ITGCs over logical access including privileged access. The following deficiencies were identified: · The firm did not sufficiently test privileged access controls for two applications because the firm did not establish that all users with privileged access were included in the population used for the testing. In addition the firm did not test the operating effectiveness of logical access controls including privileged access for the remaining applications. (AS 2301.19 and .21) Financial statement audit only | AS 2301.19; AS 2301.21 | |
| 2 | Depreciation & Amortization | The firm tested the design and operating effectiveness of information technology general controls ('ITGCs') over the issuer's general ledger and other systems ('applications') in order to rely on the accuracy and completeness of data produced by the applications that was used in performing the firm's substantive testing of long-lived assets depreciation and amortization and revenue. The firm selected for testing ITGCs over logical access including privileged access. The following deficiencies were identified: · The firm did not sufficiently test the operating effectiveness of change management controls because the firm did not test the accuracy and completeness of the population of modifications to applications. (AS 2301.21) Financial statement audit only | AS 2301.21 | |
| 3 | Depreciation & Amortization | The firm tested the design and operating effectiveness of information technology general controls ('ITGCs') over the issuer's general ledger and other systems ('applications') in order to rely on the accuracy and completeness of data produced by the applications that was used in performing the firm's substantive testing of long-lived assets depreciation and amortization and revenue. The firm selected for testing ITGCs over logical access including privileged access. The following deficiencies were identified: · The firm did not identify and test any controls related to segregation of duties over modifications to applications. (AS 2301.16) Financial statement audit only | AS 2301.16 | |
| 4 | Depreciation & Amortization | In performing its substantive testing the firm used data produced by the issuer and planned to test the accuracy and completeness of the data by testing relevant controls. The firm did not sufficiently test controls over the accuracy and completeness of the data given these deficiencies in its testing of ITGCs. (AS 2301.16 .18 and .37) Financial statement audit only | AS 2301.16; AS 2301.18; AS 2301.37 | |
| 5 | Long-Lived Assets | For certain inputs used in the issuer's value in use ('VIU') calculations for one of the issuer's segments the firm did not identify and evaluate the significance of a departure from applicable accounting standards related to the use of certain assumptions by the issuer to develop the inputs. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 6 | Long-Lived Assets | The firm did not test the accuracy and completeness of estimated operating costs and certain other data that the issuer provided to issuer-engaged specialists for their use in developing certain inputs. (AS 1210.12) Financial statement audit only | AS 1210.12 | |
| 7 | Long-Lived Assets | For another segment's VIU calculations the firm did not identify and evaluate the significance of a departure from applicable accounting standards related to the issuer excluding an estimate of net cash flows if any to be received (or paid) for the disposal of that segment's long-lived assets at the end of their useful lives. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 8 | Long-Lived Assets | The firm selected a sample of additions to long-lived assets. The firm did not test certain transactions selected for testing. In addition with respect to assets under construction the firm did not test the existence of these assets and the status of the projects including whether the construction had been delayed or suspended which could indicate potential impairment. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 9 | Long-Lived Assets | The firm did not perform sufficient procedures to test disposals because it limited its procedures to testing the authorization of each disposal selected for testing. (AS 2301.08 .16 .18 and .37) Financial statement audit only | AS 2301.8; AS 2301.16; AS 2301.18; AS 2301.37 | |
| 10 | Depreciation & Amortization | The firm did not identify and evaluate the significance of a departure from applicable accounting standards related to the use of certain assumptions by the issuer to develop certain inputs used to calculate depreciation and amortization. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 11 | Depreciation & Amortization | The firm did not test the accuracy and completeness of estimated operating and other costs that the issuer provided to issuer-engaged specialists for their use in developing certain inputs which were used in the depreciation and amortization calculations. (AS 1210.12) Financial statement audit only | AS 1210.12 | |
| 12 | Revenue | The issuer recognized certain revenue at the time risk of loss was transferred to the customer and also recorded subsequent adjustments to revenue based on information related to quality issues and the final sales price. The following deficiencies were identified: · The firm selected a sample of sales transactions during the year to test. The firm did not test the prices or evaluate the terms and conditions. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 13 | Revenue | The issuer recognized certain revenue at the time risk of loss was transferred to the customer and also recorded subsequent adjustments to revenue based on information related to quality issues and the final sales price. The following deficiencies were identified: · The firm did not test any adjustments made in the fourth quarter. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 14 | Revenue | The issuer recognized certain revenue at the time risk of loss was transferred to the customer and also recorded subsequent adjustments to revenue based on information related to quality issues and the final sales price. The following deficiencies were identified: · The firm selected a sample of sales transactions to test cut-off. The firm did not test certain transactions selected for testing. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 15 | Inventory | The issuer disclosed that inventory was subject to the risk of asset misappropriation by both internal and external parties. The firm did not identify this risk or perform any procedures to address this risk. (AS 2301.08) Financial statement audit only | AS 2301.8 |