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Baker Newman & Noyes, P.A. Limited Liability Company
United States · Triennially Inspected
- Inspection year
- 2020
- Report date
- 26-May-2022
- PCAOB release
- 104-2022-141a
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm selected for testing two review controls over the qualitative factors used in the calculation of the ALL. The firm did not evaluate the specific review procedure that the control owners performed to evaluate the reasonableness of the qualitative factors. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Allowance for Credit/Loan Losses | The firm did not identify and test a control over certain assumptions used in the calculation of the ALL. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 3 | Allowance for Credit/Loan Losses | The firm selected for testing a control that included a review of all loans to determine whether they should be put on non-accrual status. The firm did not identify and test any controls over the accuracy and completeness of a report used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ALL was to review and test management's process. The firm did not sufficiently evaluate the reasonableness of the ALL because the firm's procedures to test the qualitative factors and risk adjustment percentages the issuer used to determine the ALL were limited to (1) reading the issuer's analysis (2) comparing the factors and percentages to the prior year and (3) evaluating whether certain changes or lack thereof to the factors and percentages from the prior year were directionally consistent with internal or external data. (AS 2501.09 .10 and .11) Both financial statement and ICFR audits | AS 2501.9; AS 2501.10; AS 2501.11 |