- Inspection year
- 2020
- Report date
- 27-Jan-2022
- PCAOB release
- 104-2022-053a
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (7)
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 | Long-Lived Assets | The firm selected for testing a control that consisted of the issuer's review of depreciation expense. The firm did not evaluate the specific review procedures the control owner performed to assess the appropriateness of the methods the issuer used to calculate depreciation. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Long-Lived Assets | The firm selected for testing a control that consisted of the issuer's review of depreciation expense. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 3 | Long-Lived Assets | The firm selected for testing another control that consisted of the issuer's review of fixed assets not being depreciated per the issuer's fixed asset register to identify any assets that should be depreciated. The firm did not identify and test any controls over the accuracy and completeness of the data included within the fixed asset register used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Long-Lived Assets | The firm used the issuer's fixed asset register in its substantive testing of depreciation expense and accumulated depreciation. The firm did not test or (as discussed above) test controls over the accuracy and completeness of the information included in the fixed asset register. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The firm selected for testing a control that consisted of the issuer's review and approval of an authorization for expenditure form for the acquisition of long-lived assets. The firm did not identify and test any controls that addressed whether long-lived assets were appropriately capitalized. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 2 | Long-Lived Assets | The firm selected for testing another control that consisted of the issuer's review of manual recalculations of depreciation expense and a comparison of those amounts to the depreciation expense calculated by the issuer's fixed asset register. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39) ICFR audit only | AS 2201.39 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Cash and Cash Equivalents | The issuer closed its books and records prior to its calendar year end and did not record certain transactions that occurred between the closing date and year end. The firm did not identify and appropriately address that the issuer's accounting treatment for these transactions was not in conformity with the International Accounting Standards Board's Conceptual Framework for Financial Reporting. (AS 2810.30) Unrelated to our review the issuer reevaluated its accounting for transactions recorded between its closing date and calendar year end and concluded that a misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. The issuer also reevaluated its controls over financial reporting and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR. Financial statement audit only | AS 2810.30 |