- Inspection year
- 2020
- Report date
- 08-Apr-2022
- PCAOB release
- 104-2022-113
- 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
- 2
- 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 | Revenue | The firm selected for testing a control over the review of the entry to record certain revenue and the calculation of that revenue. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of certain assumptions used in the calculation. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Revenue | The firm selected for testing a control over the review of certain current-period revenue compared to the prior period. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 3 | Revenue | In addition the firm did not identify and test any controls over the accuracy and completeness of data used in the operation of the above two controls and another control over the review of the reconciliation of revenue. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Revenue | To test certain revenue the firm selected for testing items that met specific criteria. The firm did not perform any substantive procedures to test the remaining portion of items that did not meet the specific criteria. (AS 1105.27; AS 2301.08) Both financial statement and ICFR audits | AS 1105.27; AS 2301.8 | |
| 5 | Long-Lived Assets | The issuer exchanged land with an external party during the year. The issuer estimated the fair value of the acquired land based on the nominal value within the agreement and the purchase price of other land during the year (collectively the 'inputs'). The firm selected for testing a control that included a review of accounting and other considerations for this transaction. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the relevance of inputs used to estimate the fair value of the acquired land. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 6 | Long-Lived Assets | The firm did not perform substantive procedures to evaluate the relevance of the inputs used to estimate the fair value of the acquired land beyond determining that the acquired land was adjacent to land previously acquired by the issuer during the year. (AS 2502.26 .28 and .31) Both financial statement and ICFR audits | AS 2502.26; AS 2502.28; AS 2502.31 |