- Inspection year
- 2020
- Report date
- 13-May-2022
- PCAOB release
- 104-2022-135
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform procedures to test whether all criteria were met to recognize revenue. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Revenue | The sample size the firm used in its substantive procedure to test revenue was too small to achieve the planned objective for the test because it used the methodology for determining a sample size for a test of controls and did not consider factors relevant to determining the sample size for its substantive testing. (AS 2315.16 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.23; AS 2315.23A | |
| 3 | Allowance for Doubtful Accounts | The firm did not evaluate the reasonableness of the allowance for doubtful accounts beyond inquiring of management and obtaining evidence of certain cash collections. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Inventory | The firm's substantive procedures to test inventory included observing inventory after year end and obtaining a roll-back schedule from the date of the inventory observation to the balance sheet date. The firm did not test certain types of transactions in this schedule. (AS 2510.12) Financial statement audit only | AS 2510.12 | |
| 5 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |