- Inspection year
- 2021
- Report date
- 14-Jul-2022
- PCAOB release
- 104-2022-153
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- —
- 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 | Long-Lived Assets | The issuer performed an impairment analysis for its long-lived asset groups using estimates of future undiscounted cash flows to evaluate whether the carrying value of each asset group was recoverable. These estimates were based on a weighted average of historical cash flows for each asset group. The firm's approach for substantively testing this analysis was to review and test management's process and for certain asset groups to develop an independent expectation of the estimate. The following deficiencies were identified: • The firm did not evaluate whether certain assumptions the issuer used in this analysis were in conformity with FASB ASC Topic 360 Property Plant and Equipment. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 2 | Long-Lived Assets | The issuer performed an impairment analysis for its long-lived asset groups using estimates of future undiscounted cash flows to evaluate whether the carrying value of each asset group was recoverable. These estimates were based on a weighted average of historical cash flows for each asset group. The firm's approach for substantively testing this analysis was to review and test management's process and for certain asset groups to develop an independent expectation of the estimate. The following deficiencies were identified: • The firm did not evaluate the reasonableness of the weighting that the issuer assigned to the historical cash flows including consideration of the significant adverse events that affected the issuer's business during the year beyond concluding that it was reasonable to weigh the more recent results more heavily. (AS 2501.09 .10 and .11;3 AS 2810.03) [This citation refers to AS 2501 Auditing Accounting Estimates which was in effect for this audit. This standard was replaced by AS 2501 Auditing Accounting Estimates Including Fair Value Measurements which became effective for audits of financial statements for fiscal years ending on or after December 15 2020.] Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.11; AS 2810.3 | |
| 3 | Long-Lived Assets | The issuer performed an impairment analysis for its long-lived asset groups using estimates of future undiscounted cash flows to evaluate whether the carrying value of each asset group was recoverable. These estimates were based on a weighted average of historical cash flows for each asset group. The firm's approach for substantively testing this analysis was to review and test management's process and for certain asset groups to develop an independent expectation of the estimate. The following deficiencies were identified: • The firm used certain information from external sources to develop its independent expectations but did not perform any procedures to evaluate the relevance and reliability of this information. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 |