- Inspection year
- 2020
- Report date
- 21-Apr-2022
- PCAOB release
- 104-2022-119
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- 1
- 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 | The firm did not perform procedures to test certain revenue including whether all criteria for revenue recognition had been met. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Related Party Transactions | The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified accounted for and disclosed its related party relationships and transactions. Specifically the firm did not evaluate whether certain transactions (communicated by the firm to the audit committee as significant unusual transactions) with a company for which (i) a shareholder of the issuer was a director and (ii) an immediate family member of the issuer's majority shareholders was the chief executive officer were related party transactions that the issuer should have identified and disclosed and whether such transactions were accounted for appropriately. (AS 2410.14 .15 and .17) Financial statement audit only | AS 2410.14; AS 2410.15; AS 2410.17 | |
| 3 | Related Party Transactions | The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified accounted for and disclosed its related party relationships and transactions. Specifically the firm did not perform procedures to obtain an understanding of the business purpose (or the lack thereof) of the transactions. (AS 2401.66A .67 and .67A) Financial statement audit only | AS 2401.67; AS 2401.66A; AS 2401.67A |