- Inspection year
- 2020
- Report date
- 08-Apr-2022
- PCAOB release
- 104-2022-108a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (3)
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 | Revenue and Accounts Receivable | The firm selected for testing controls that consisted of the review of (1) the allowance for doubtful accounts analysis (2) revenue transactions over a monetary threshold that occurred during certain time periods and (3) write-offs. The firm did not identify and test any controls over the accuracy and/or completeness of system-generated reports that the control owners used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Revenue and Accounts Receivable | The sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 3 | Revenue and Accounts Receivable | The firm did not test or test controls over the accuracy and completeness of the system-generated accounts receivable aging report that it used in its substantive testing of the allowance for doubtful accounts. (AS 1105.10; AS 2501.11) Both financial statement and ICFR audits | AS 1105.10; AS 2501.11 |