- Inspection year
- 2020
- Report date
- 13-May-2022
- PCAOB release
- 104-2022-131
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 2
- 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 A8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Transactions | During the year the issuer entered into certain transactions. The firm did not identify and appropriately address departures from GAAP related to the issuer's accounting for two transactions. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 2 | Significant Transactions | During the year the issuer entered into certain transactions. With respect to one other transaction the firm did not identify and evaluate the significance to the issuer's financial statements of a departure from GAAP related to the issuer's accounting for this transaction. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 3 | Significant Transactions | During the year the issuer entered into certain transactions. The firm did not evaluate whether the issuer appropriately accounted for another aspect of this transaction. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 4 | Equity-Related Transactions | The issuer issued shares of common stock in exchange for services rendered. The firm did not evaluate whether the issuer appropriately accounted for these shares in conformity with GAAP. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 5 | Equity-Related Transactions | The issuer also issued shares of preferred stock and applied a discount in determining the fair value of the shares. The firm did not evaluate the reasonableness of the discount. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 | |
| 6 | Equity-Related Transactions | With regard to the issuance of the common stock and the preferred stock (discussed above) the firm did not identify and evaluate the significance to the issuer's financial statements of a departure from GAAP related to the issuer's omission of certain disclosures required by with FASB ASC Topic 718 Compensation — Stock Compensation. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 7 | Equity-Related Transactions | The issuer reported certain other equity-related transactions during the year. The firm did not perform any procedures to test these transactions including their fair value. (AS 2301.08; AS 2502.15) Financial statement audit only | AS 2301.8; AS 2502.15 | |
| 8 | Allowance for Doubtful Accounts | The firm's approach for substantively testing the allowance for doubtful accounts was to review subsequent transactions. The firm did not sufficiently evaluate the reasonableness of the allowance because the firm limited its procedures to obtaining (1) a listing of outstanding receivable balances by customer and the related aging and (2) evidence of certain subsequent cash receipts. (AS 2501.09 .10 and .13) Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.13 |