- Inspection year
- 2021
- Report date
- 29-Sep-2022
- PCAOB release
- 104-2022-208a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- 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 issuer's general reserve component of the ALL included a qualitative reserve that included two components based on qualitative adjustments. The firm's approach for substantively testing the ALL was to test the issuer's process. The firm did not perform sufficient procedures to evaluate the reasonableness of the basis points applied to qualitative factors used by the issuer to determine one of the qualitative adjustments because the firm did not evaluate whether the issuer had a reasonable basis for the basis points used. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 2 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve that included two components based on qualitative adjustments. The firm's approach for substantively testing the ALL was to test the issuer's process. The firm did not perform sufficient procedures to test the other qualitative adjustment because the firm did not evaluate the reasonableness of a significant assumption used in the calculation. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 3 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve that included two components based on qualitative adjustments. The firm's approach for substantively testing the ALL was to test the issuer's process. The firm did not evaluate the relevance of certain external data the issuer used to determine the adjustment. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 4 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve that included two components based on qualitative adjustments. The firm's approach for substantively testing the ALL was to test the issuer's process. The firm did not perform any substantive procedures to test or in the alternative test any controls over the accuracy and completeness of certain internal data used in the calculation. (AS 1105.10) Financial statement audit only | AS 1105.10 |