- Inspection year
- 2020
- Report date
- 10-Feb-2022
- PCAOB release
- 104-2022-063
- 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
- —
- 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 | Revenue | The firm did not identify and appropriately address a departure from GAAP related to the issuer recognizing certain revenue that did not reflect consideration promised in a contract in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 2 | Revenue | For this revenue the firm did not evaluate if it was probable that the issuer would collect substantially all of the consideration to which it believes it is entitled. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 3 | Revenue | For other types of revenue the firm did not sufficiently evaluate whether the revenue was appropriately recognized in conformity with ASC Topic 606 because it limited its procedures to verifying that the issuer received cash for recognized revenue. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 4 | Accounts Receivable | The firm did not perform sufficient procedures to test the existence of and the issuer's rights and obligations regarding accounts receivable because it limited its procedures to (1) inquiring of the issuer and (2) inspecting documents prepared by the issuer regarding the amounts recorded for certain accounts receivable. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Significant Estimates | The firm's approach for substantively testing a significant estimate was to develop an independent expectation of the estimate. The firm did not evaluate the relevance and reliability of data it used to develop its independent estimate. (AS 1105.04 and .06; AS 2501.12) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2501.12 |