- Inspection year
- 2020
- Report date
- 10-Mar-2022
- PCAOB release
- 104-2022-092
- Audits reviewed
- 8
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 38%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 1
- 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 A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investment Income | The issuer used service organizations for accounting and custodial services. The firm's approach to testing net realized gain or loss on investment securities and investment income included reliance on controls. The firm did not test beyond inquiry complementary user controls over net realized gain or loss and investment income identified in the service auditors' reports. (AS 2601.14) Financial statement audit only | AS 2601.14 | |
| 2 | Investment Income | The issuer used service organizations for accounting and custodial services. The firm's approach to testing net realized gain or loss on investment securities and investment income included reliance on controls. Given the length of the period under audit not covered by the service auditors' reports the firm inappropriately limited its procedures to reading the bridge letters. (AS 2601.16) Financial statement audit only | AS 2601.16 | |
| 3 | Investment Income | Certain service organizations used sub-service organizations to assist with the accounting and custodial services and the controls for the sub-service organizations were not addressed in the service auditors' reports. The firm did not determine whether it was necessary to obtain an understanding of or test any relevant controls at the sub-service organizations. (AS 2601.16) Financial statement audit only | AS 2601.16 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investment Income | The issuer used service organizations for accounting and custodial services. The firm's approach to testing net realized gain or loss on investment securities and investment income included reliance on controls. The firm did not test beyond inquiry complementary user controls over net realized gain or loss and investment income identified in the service auditors' reports. (AS 2601.14) Financial statement audit only | AS 2601.14 | |
| 2 | Investment Income | Certain service organizations used sub-service organizations to assist with the accounting and custodial services and the controls for the sub-service organizations were not addressed in the service auditors' reports. The firm did not determine whether it was necessary to obtain an understanding of or test any relevant controls at the sub-service organizations. (AS 2601.16) Financial statement audit only | AS 2601.16 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investment Income | The issuer used service organizations for accounting and custodial services. The firm's approach to testing net realized gain or loss on investment securities and investment income included reliance on controls. The firm did not test beyond inquiry complementary user controls over net realized gain or loss and investment income identified in the service auditors' reports. (AS 2601.14) Financial statement audit only | AS 2601.14 |