- Inspection year
- 2020
- Report date
- 10-Mar-2022
- PCAOB release
- 104-2022-088
- 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
- 4
- 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 | Reclamation and Restoration Provisions | During the year the issuer reevaluated its reclamation and restoration provisions. The firm did not perform substantive procedures to evaluate the reasonableness of certain assumptions the issuer used in its reevaluation. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 | |
| 2 | Reclamation and Restoration Provisions | During the year the issuer reevaluated its reclamation and restoration provisions. The firm did not identify and evaluate the significance to the issuer's financial statements of a departure from GAAP related to the issuer's use of a discount rate that was not a current credit-adjusted risk-free rate in conformity with FASB ASC Topic 410 Asset Retirement and Environmental Obligations. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 3 | Oil and Gas Properties | The issuer concluded at year end that certain of its oil and gas properties were not impaired. The firm concluded that the issuer's assessment was reasonable without performing any procedures. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Oil and Gas Properties | The firm's approach for substantively testing the issuer's evaluation of certain other oil and gas properties for possible impairment was to develop an independent expectation of the estimate of undiscounted cash flows. The firm obtained certain data and assumptions from the issuer to develop its expectation. The following deficiencies were identified: · The firm did not test the accuracy and completeness of certain data obtained from the issuer. (AS 1105.10; AS 2501.09 .10 and .12) Financial statement audit only | AS 1105.10; AS 2501.9; AS 2501.10; AS 2501.12 | |
| 5 | Oil and Gas Properties | The firm's approach for substantively testing the issuer's evaluation of certain other oil and gas properties for possible impairment was to develop an independent expectation of the estimate of undiscounted cash flows. The firm obtained certain data and assumptions from the issuer to develop its expectation. The following deficiencies were identified: · The firm did not evaluate the reasonableness of certain assumptions obtained from the issuer including the reasonableness of those assumptions in light of the firm's conclusion that there was substantial doubt about the issuer's ability to continue as a going concern. (AS 2501.09 .10 and .12; AS 2810.03) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.12; AS 2810.3 | |
| 6 | Oil and Gas Properties | The firm's approach for substantively testing the issuer's evaluation of certain other oil and gas properties for possible impairment was to develop an independent expectation of the estimate of undiscounted cash flows. The firm obtained certain data and assumptions from the issuer to develop its expectation. The following deficiencies were identified: · The firm did not perform any procedures to determine the reasonableness of an assumption it developed and used in its independent expectation. (AS 2501.09 .10 and .12) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.12 |