- Inspection year
- 2021
- Report date
- 29-Sep-2022
- PCAOB release
- 104-2022-213
- 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
- 4
- 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 | Goodwill | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analysis for goodwill. The external specialist used a combination of the income approach and the market approach. The following deficiencies were identified: • The firm did not perform procedures to evaluate the reasonableness of the projected cash flows provided by the issuer used in the income approach beyond obtaining a listing of the issuer's contracts and reviewing a selection of those contracts. (AS 1210.12) [This citation refers to AS 1210 Using the Work of a Specialist which was in effect for this audit. This standard was replaced by AS 1210 Using the Work of an Auditor-Engaged Specialist. In addition AS 1105 Audit Evidence and AS 1201 Supervision of the Audit Engagement which were in effect for this audit were revised to include appendices for auditor's use of the work of a company's specialist and auditor's supervision of the work of an auditor-employed specialist respectively. This replacement and these revisions are effective for audits of financial statements for fiscal years ending on or after December 15 2020.] Financial statement audit only | AS 1210.12 | |
| 2 | Goodwill | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analysis for goodwill. The external specialist used a combination of the income approach and the market approach. The following deficiencies were identified: • The firm did not perform procedures to evaluate the relevance and reliability of certain information used in the market approach. (AS 2502.31) Financial statement audit only | AS 2502.31 | |
| 3 | Goodwill | The issuer engaged an external specialist to determine its enterprise value and used that valuation in its impairment analysis for goodwill. The external specialist used a combination of the income approach and the market approach. The following deficiencies were identified: • The firm did not perform procedures to evaluate the reasonableness of the discount rate used in the impairment analysis. (AS 2502.26 and .28) Financial statement audit only | AS 2502.26; AS 2502.28 |