- Inspection year
- 2020
- Report date
- 10-Feb-2022
- PCAOB release
- 104-2022-065
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (2)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer's ALL included a qualitative component. The firm's approach for substantively testing the ALL was to review and test management's process. The firm did not sufficiently evaluate the reasonableness of the qualitative component of the ALL because the firm's procedures to test certain assumptions the issuer used to determine the qualitative component were limited to comparing these assumptions to prior periods inquiring about changes and recalculating the allowance. (AS 2501.09 .10 and .11) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.11 | |
| 2 | Loans | The firm sent positive confirmation requests to the issuer's customers for a selection of loans. For the items for which the requested confirmations were not returned the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the recorded amounts of the loan balances were accurate and existed as of the confirmation date. (AS 2310.31) Financial statement audit only | AS 2310.31 |