- Inspection year
- 2020
- Report date
- 21-Apr-2022
- PCAOB release
- 104-2022-125
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (2)
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 | Intangible Assets | During the year the issuer extended the useful lives of its intangible assets from their original lives. The issuer used a discounted cash flow analysis over the extended lives to evaluate its intangible assets for possible impairment. The firm did not perform sufficient procedures to evaluate the reasonableness of the sales projections because the firm did not perform procedures beyond inquiry to test the reasonableness of extending the useful lives. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 | |
| 2 | Intangible Assets | During the year the issuer extended the useful lives of its intangible assets from their original lives. The issuer used a discounted cash flow analysis over the extended lives to evaluate its intangible assets for possible impairment. The firm did not sufficiently evaluate the issuer's ability to achieve its forecasted sales projections in light of the substantial doubt about the issuer's ability to continue as a going concern because it limited its procedures to inquiry and comparing the forecasted sales projections to the current year results. (AS 2502.26 .28 .31 and .36) Financial statement audit only | AS 2502.26; AS 2502.28; AS 2502.31; AS 2502.36 |