- Inspection year
- 2020
- Report date
- 24-Mar-2022
- PCAOB release
- 104-2022-097a
- Audits reviewed
- 6
- Audits w/ Part I.A deficiencies
- 5
- Part I.A deficiency rate
- 83%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (8)
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 | Revenue | The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Revenue | The firm identified a fraud risk related to revenue. The firm did not perform tests of details over certain other revenue in response to the fraud risk. (AS 2301.13) Unrelated to our review the issuer reevaluated its accounting for certain revenue and concluded that a material 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. Financial statement audit only | AS 2301.13 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a controlling interest of a business. The firm did not perform sufficient procedures to test whether the issuer's accounting of the business combination was in conformity with FASB ASC Topic 805 because the firm did not evaluate whether the issuer (1) appropriately recorded the acquisition consideration (2) identified and appropriately recorded all assets acquired liabilities assumed and non-controlling interests and (3) measured them at their respective acquisition-date fair values. (AS 2810.30) Financial statement audit only | AS 2810.30; AS 2810.31 |
Issuer C3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Equity-Related Transactions | During the year the issuer issued shares of common stock in exchange for services rendered. The firm did not test the fair value of the shares issued. (AS 2502.15) Financial statement audit only | AS 2502.15 | |
| 2 | Equity-Related Transactions | During the year the issuer also issued stock options for services rendered and determined their fair value using both data and assumptions. The firm did not perform any substantive procedures to test or in the alternative test controls over the accuracy and completeness of this data and evaluate the reasonableness of these assumptions. (AS 2502.26 .28 and .39) Financial statement audit only | AS 2502.26; AS 2502.28; AS 2502.39 | |
| 3 | Equity-Related Transactions | During the year the issuer also issued stock options for services rendered and determined their fair value using both data and assumptions. The firm did not evaluate whether the fair value was properly determined from such data and assumptions. (AS 2502.39) Financial statement audit only | AS 2502.39 |
Issuer D1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to evaluate whether the performance obligations were satisfied before revenue was recognized. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer E1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to evaluate whether the performance obligation(s) was satisfied before certain revenue was recognized. (AS 2301.08) Financial statement audit only | AS 2301.8 |